Capital Expansion for a Nonprofit
By providing housing to families that have relatives in the hospital, this nonprofit acts as a support network to these struggling families and eases their commute in a troubling time.
Situation:
Fortunately, our client did not face significant decreases in donations due to COVID-19. As a result, our companies operations matched their operations prior to the pandemic, aside for some of their fundraising events moved to an online platform.
Because our client was an extension of a larger organization, there was a lot of red tape. The client faced a rigorous application process from the larger organization to approve an expansion of their house.
In order for approval, the need for the extra spaces and amenities needed to be documented as well as a steady source of fundraising already established..
Challenge:
Rem and Company was tasked with helping the client navigate through this process in order to be granted approval on their application for an extension.
The client needed to consolidate their financial data from the previous years, and create assumptions about expenses as well as revenues moving forward. Some pain points for our client was the fact that they weren’t able to easily predict revenues because they come from donations. With this in mind, our client needed to heavily analyze past years’ donations as well as expenses in order to create strong assumptions.
Approach:
Our approach was to first understand our client’s business by analyzing their past financial data. The team used an average of revenues; as well as, expenses per room for our client in order to have a strong understanding of the money coming in as well as the costs for our client.
In order to comply with the guidelines from the larger organization, the team had to work within a standardized Excel template that guided us through the necessary information needed by the national corporation for approval. This template served as the foundation for a larger deliverable, allowing the team to create strong assumptions around expenses, revenue, and expansion costs.
Impact:
The Rem and Company team provided deliverables to aid in the client’s capital expansion project and aid in the approval processes; thereby, enabling the nonprofit to increase capacity at their facility, serving a larger amount of families. Overall, the analysis and breakdown of financials established better financial acumen and aims to create long term growth for the North Central facility.
Team Breakdown:
Team Lead: Chad Girnun
Team Lead: Christian Kechriotis
Strategist: Justin Lorry
Strategist: Kishan Patel
Strategist: Marianne Gutierrez
Relevant Background Information:
Business Type: Nonprofit
Industry: Healthcare Housing
Location: North Central Florida, Gainesville Florida
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