Helping Hand

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Nonprofit Food Bank Business Plan

Financial Plan

Helping Hand is funded from a variety of sources, public and private.  We anticipate that funding will increase by 15% over the next three years.  The executive director and the board of directors will be responsible for reviewing the program expenditures and making adjustment to assure the program solvency.

7.1 Important Assumptions

The financial plan depends on important assumptions, most of which are shown in the following table.

The key underlying assumptions are:

  • We assume a slow-growth economy, without major recession.
  • We assume population growth in the county that will contribute to additional low-income clients.
  • We assume, of course, that there are no unforeseen changes in funding availability.
  • We assume a continued need for emergency food services in the county.
General Assumptions
Year 1 Year 2 Year 3
Plan Month 1 2 3
Current Interest Rate 10.00% 10.00% 10.00%
Long-term Interest Rate 10.00% 10.00% 10.00%
Tax Rate 0.00% 0.00% 0.00%
Other 0 0 0

7.2 Projected Surplus or Deficit

Helping Hand's Projected Surplus and Deficit is shown on the following table. The detailed monthly projections are included in the appendix.

 

 

Surplus and Deficit
Year 1 Year 2 Year 3
Funding $408,360 $548,296 $592,181
Direct Cost $47,730 $53,800 $59,700
Other Costs of Funding $0 $0 $0
Total Direct Cost $47,730 $53,800 $59,700
Gross Surplus $360,630 $494,496 $532,481
Gross Surplus % 88.31% 90.19% 89.92%
Expenses
Payroll $132,000 $132,000 $132,000
Sales and Marketing Costs $0 $0 $0
Depreciation $840 $840 $840
Rent $12,000 $12,000 $12,000
Utilities $2,400 $2,400 $2,400
Insurance $3,600 $3,600 $3,600
Payroll Taxes $19,800 $19,800 $19,800
Food Distribution $195,000 $260,000 $290,000
Total Operating Expenses $365,640 $430,640 $460,640
Surplus Before Interest and Taxes ($5,010) $63,856 $71,841
EBITDA ($4,170) $64,696 $72,681
Interest Expense $0 $0 $0
Taxes Incurred $0 $0 $0
Net Surplus ($5,010) $63,856 $71,841
Net Surplus/Funding -1.23% 11.65% 12.13%

7.3 Projected Cash Flow

Helping Hand's cash flow is represented as funding dollars and collected food and monetary donations. The monthly cash flow is shown in the illustration, with one bar representing the cash flow per month, and the other the monthly cash balance. The annual cash flow figures are included here and the more important detailed monthly numbers are included in the appendix.

Pro Forma Cash Flow
Year 1 Year 2 Year 3
Cash Received
Cash from Operations
Cash Funding $408,360 $548,296 $592,181
Subtotal Cash from Operations $408,360 $548,296 $592,181
Additional Cash Received
Sales Tax, VAT, HST/GST Received $0 $0 $0
New Current Borrowing $0 $0 $0
New Other Liabilities (interest-free) $0 $0 $0
New Long-term Liabilities $0 $0 $0
Sales of Other Current Assets $0 $0 $0
Sales of Long-term Assets $0 $0 $0
New Investment Received $0 $0 $0
Subtotal Cash Received $408,360 $548,296 $592,181
Expenditures Year 1 Year 2 Year 3
Expenditures from Operations
Cash Spending $132,000 $132,000 $132,000
Bill Payments $257,132 $354,348 $385,465
Subtotal Spent on Operations $389,132 $486,348 $517,465
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out $0 $0 $0
Principal Repayment of Current Borrowing $0 $0 $0
Other Liabilities Principal Repayment $0 $0 $0
Long-term Liabilities Principal Repayment $0 $0 $0
Purchase Other Current Assets $0 $0 $0
Purchase Long-term Assets $0 $0 $0
Dividends $0 $0 $0
Subtotal Cash Spent $389,132 $486,348 $517,465
Net Cash Flow $19,228 $61,948 $74,716
Cash Balance $88,228 $150,176 $224,892

7.4 Projected Balance Sheet

The following table represents the Project Balance Sheet for Helping Hand.

Pro Forma Balance Sheet
Year 1 Year 2 Year 3
Assets
Current Assets
Cash $88,228 $150,176 $224,892
Inventory $7,386 $8,326 $9,239
Other Current Assets $0 $0 $0
Total Current Assets $95,614 $158,501 $234,131
Long-term Assets
Long-term Assets $7,000 $7,000 $7,000
Accumulated Depreciation $840 $1,680 $2,520
Total Long-term Assets $6,160 $5,320 $4,480
Total Assets $101,774 $163,821 $238,611
Liabilities and Capital Year 1 Year 2 Year 3
Current Liabilities
Accounts Payable $30,784 $28,976 $31,924
Current Borrowing $0 $0 $0
Other Current Liabilities $0 $0 $0
Subtotal Current Liabilities $30,784 $28,976 $31,924
Long-term Liabilities $0 $0 $0
Total Liabilities $30,784 $28,976 $31,924
Paid-in Capital $200,000 $200,000 $200,000
Accumulated Surplus/Deficit ($124,000) ($129,010) ($65,154)
Surplus/Deficit ($5,010) $63,856 $71,841
Total Capital $70,990 $134,846 $206,686
Total Liabilities and Capital $101,774 $163,821 $238,611
Net Worth $70,990 $134,846 $206,686