Cash Flow Projection

A cash flow projection is a financial forecast that estimates the amount of cash expected to flow into and out of an organization over a specific period, such as a month, quarter, or year. For nonprofits, cash flow projections provide insights into when funds will be available to cover operational expenses, helping organizations avoid shortfalls and plan for major expenditures. This tool considers both incoming cash (like donations, grants, and program income) and outgoing cash (such as payroll, rent, and program costs), allowing for proactive financial planning and decision-making. Regularly updating cash flow projections enables nonprofits to anticipate potential funding gaps, adjust spending, and communicate financial needs to stakeholders with confidence.