Cash Flow Forecast Analysis Strategic Planning: A Case Study Of An Ethekwini-Based Non-Profit Organisation

Abstract

Non-profit organizations (NPOs) face challenges in exploring the full benefit of using cash flow forecasting and the relevant analysis to inform their sustainability due to disenabling constraints. The study aimed to evaluate the effects of the adequate use of cash flow forecast analysis in the strategic planning of NPOs. Qualitative research using interviews and a document analysis sought to evaluate these effects. The sample consisted of executive members of the board and financial officers who were purposively selected to be interviewed based on their knowledge using semi-structured, in-depth interviews. Conventional thematic analysis using NVivo and document analysis were used as data analysis techniques. From the study findings, it was evident that the NPO used information obtained from the cash flow forecast analysis to set and achieve feasible goals in meeting its mandate. The demonstrated effect of using information from the forecast analysis contributed to 75% of the core drivers of its strategic plan, essentially to the NPO’s sustainability goals. The study contributes to the NPO sector by informing NPOs on incorporating cash flow forecast analysis as a strategic tool for planning.