Foxhall Consulting Services
Foxhall Consulting is dedicated to focusing the vision, improving the execution, and sustaining the impact of social entrepreneurs.
Maximizing Social, Environmental, and Economic Returns
Financial Analyses/SROI
FCS is prepared to assist your organization with all aspects of financial analysis, whether for evaluation of an existing or a proposed business venture, or of your existing core programs.
We will help you understand the true economic impacts of your activity, and answer questions such as:
- How profitable can this new business be?
- What is its growth potential?
- What will be the mission-related outcomes and costs?
- How will our performance compare to our competitors?
- How do our costs behave? What is the relationship between our fixed and variable costs?
- How much cash will we need to start this business? What potential losses should we be prepared for? For how long?
- How will the new business impact or leverage the assets of existing programs/businesses?
- How should we handle our organizational overheads?
- How will UBIT (unrelated business income tax) effect our business?
We can assist you with developing any or all of the following key components of a financial analysis:
- Accounting System Design: We design and modify accounting and budgeting systems to improve compliance reporting, fundraising efforts, and managerial analysis. Our systems enable organizations to make better data-driven financial decisions that support their mission, values and strategy, as well as comply with various grant and legal requirements. Our support in this area typically pays for itself many times over, year after year.
- Shared Cost Accounting: We design logical and effective systems for directly tracing and assigning shared costs to individual programs or even specific activities within each program, enabling sound analysis of the financial costs of various programmatic activities.
- Financial Projections/Pro-Formas: Our dynamic, interactive models are unlike any others on the market and have consistently received praise from clients, investors and funders. We thoughtfully handle the complexities of the nonprofit operating environment, rather than forcing them into a for-profit model.
- Cash-flow Management: Our cash-flow projections help managers maximize cash utilization and manage potential shortfalls by leveraging unused cash, delaying expenditures, obtaining short-term loans or advanced payments.
- Social Enterprise Accounting System Design: We design accounting systems that respond effectively to the unique needs of social enterprises and facilitate their integration with the larger organizational financial reporting system.
- Social Enterprise Financial Modeling: We design financial models that effectively capture the unique hybrid characteristics of social enterprises by:
- Capturing complex capital structures which can include combinations of subsidies, grants, donated equipment and infrastructure in addition to traditional debt and equity.
- Relating operating subsidies to social costs and social and environmental outcomes.
- Ensuring all costs related to social enterprise activities are accounted for.
- Properly accounting for cross-subsidization and other financial transfers between the social enterprise and related organizations.
- Social Enterprise Financial Reporting: We adapt report designs to the needs of varied audiences:
- Compliance reporting mostly targets grantmakers, regulators, auditors and board members, and includes tax and legal reporting, traditional budget-based grant reporting as well as audit reporting.
- Managerial reporting mostly addresses the needs of managers and philanthropists: ongoing performance assessment and evaluation as well as pricing, financial projections and other forms of predictave planning.
- Bottom-Up Financial Analysis: FCS is expert at developing simple yet robust systems that allow staff members to generate initial profitability analyses for new business ideas. Say goodbye to those proposals that lose money, have high development costs, and don't serve your mission effectively!