Nonprofit Case Study

CLIENT’S CHALLENGES

Numerous challenges prompted the outreach to Driven Insights:

• Financials were incomplete and riddled with inconsistencies and inaccuracies
• Lacked the accounting practices required to generate reporting necessary to inform management and board level decisions
• Leadership was hungry for systems that embraced the multifaceted nature of the organization, providing insights tailored to the organization
• Sharp seasonal swings in cash flow without the tools to proactively manage cash
• Turnaround efforts hampered by cash burn without transparency into the root causes
• Didn’t have the in-house expertise to lead the required changes and couldn’t afford to hire such leadership using traditional methods
• Management and board were distracted from core duties trying to make sense of financial information
• Heavy and growing debt burden with no repayment plan
• Capital campaign required to invest in ongoing growth, but couldn’t approach donors without a detailed budget that supported strategic plan 

SOLUTION

Driven Insights cleaned up MCM’s books back to the beginning of the current fiscal year and implemented the systems and technology required to streamline accounting process. They then took over the day-to-day finance function for MCM, providing ongoing bookkeeping, payroll and controller services.

MCM receives a monthly financial reporting package – comprised of income statement, balance sheet, statement of cash flows and more - tailored to their needs. They also participate on a monthly call with their Driven Insights accounting team to review and analyze the results and plan for the upcoming month.

Driven Insights also led MCM’s first ever comprehensive annual budgeting process to align with the organization’s strategic plan.

RESULTS

Expanding the Mission:

• Cash flow management tools developed and managed by Driven Insights enabled successful navigation through cash crunch and now allow MCM to proactively manage its seasonality
• MCM paid down debt and successfully expanded line of credit
• Rearchitected accounting system generates insightful reporting, including department-level profitability
• Financial reporting is now trustworthy, insightful and at executive director’s and board’s fingertips, delivered on the same day each month
• Visibility into performance allows for better accountability, at employee, management and board levels
• Budgeting process led by Driven Insights cut the operating deficit in half and provided ingredients to kickoff a capital campaign to bridge the gap
• Management and board now have clear view of the cost of individual initiatives
• Board confidence has been restored and the ongoing reporting enables much higher level of board engagement