Immigrant-Led NonProfit Grows from $2m to $32m

Situation Overview: An immigrant services organization with a budget of $1.8 million in 2006 engaged NPFM to manage growth potential. At that time, 80% of the organization’s revenue was from restricted funding sources. They struggled to ensure that all revenue from government and foundations supported direct program costs and shared overhead. They needed a progressive accounting structure and budget template that had segregated costs and verifiable allocation methods to charge restricted funders with costs that only related to their interests.

Action steps: NPFM redesigned the organization’s accounting systems, financial reporting, and monitoring procedures and instituted conservative budgeting processes and accurate financial monitoring systems.

Results: Today, the organization has a budget of $32 million, with seven full-time finance department employees. Their work with NPFM allowed them to successfully secure the needed funding sources to construct a new facility through foundations and new market tax credits. They have also undergone hundreds of audits from government funding sources and external auditors and have never received an unmodified audit report or material finding. NPFM is still involved with this organization providing ongoing advice and other services.