Helping Hand
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 |