Cash flow forecast (13 weeks or 12 months)

A budget says whether you'll have enough money over the whole year. A cash flow forecast says whether you'll have enough money in the bank on each date. A charity can be on budget and still run out of cash in March, because the big grant arrives in June and payroll is due every two weeks. This template helps you see that gap weeks ahead, while you can still do something about it.

It works alongside your financial controls: the same person who reconciles the bank account each month is well placed to roll the forecast forward.

Which version to use

• 13 weeks (one quarter, week by week) when cash is tight, you run payroll, or a large payment is late. It's detailed enough to plan which bills to pay in which week.
• 12 months (month by month) for planning the year, timing a fundraising appeal, or deciding whether you can take on a reimbursement grant. Start from your annual budget, then move each line to the month the cash really moves.

Many treasurers keep both: a 12-month view for the board, and a 13-week view for themselves when things get tight.

How to fill it in

• Start with real cash. The opening balance is what's in the bank today, from the reconciled statement, not from the budget.
• Count only unrestricted cash as available. Money a donor restricted to a purpose can only be spent on that purpose. Track it on its own line. See restricted funds.
• Use the date cash moves, not the date it's earned. A grant awarded in January but paid in April goes in April. A bill received in May and paid in June goes in June.
• Reimbursement grants pay after you spend. Under federal rules, when a grant is paid by reimbursement the federal agency must pay within 30 calendar days after it receives a proper payment request (2 CFR 200.305). In a forecast, that means you pay the costs first and the cash comes back later. Many other funders pay on their own schedules, so check each grant agreement. See federal grants readiness.
• Payroll taxes have their own dates. IRS Publication 15 says a monthly schedule depositor must deposit employment taxes on payments made during a month "by the 15th day of the following month." Employers who reported more than $50,000 of taxes in their lookback period deposit on a semiweekly schedule instead. Put the deposits in the week or month they're due. State payroll taxes and unemployment insurance have their own schedules, which vary by state.
• Remember the once-a-year bills. Insurance renewals, audit or review fees, state charity registration renewals (fees and due dates vary by state) and software subscriptions paid annually.
• Unrelated business tax. If your charity expects to owe $500 or more of tax on unrelated business income, the Form 990-T instructions say it must pay estimated tax in installments. Put those payments in. See earned income.
• Be honest about uncertain income. Put pledges and pending grants in only when you're confident, or show two closing balances: one with them and one without.

Reading the forecast

• Set a floor. Decide with the board the lowest balance you're willing to hold, for example enough for one payroll and a month's rent. Highlight any week or month that falls below it.
• Act early on a gap. Options include asking a funder to pay an installment early, timing an appeal, delaying a purchase, or talking to the board about a short-term line of credit. Your bylaws or state law may require board approval for borrowing, and state law varies.
• Compare forecast with actual each period. When a week or month closes, write in what really happened, and roll the forecast forward by one period. Over time your guesses get better.