Cashflow forecast

Charities rarely fail because the annual budget did not add up. They fail because a grant arrived in July and the salaries were due in April.

The forecast maps expected receipts and payments against time, showing the low points. For a charity with lumpy grant income and steady staff costs, those low points are the real risk, and they are invisible in an annual budget.

Update it monthly, not annually, and use it to trigger conversations early — see building a cashflow forecast and going concern.