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Case Study: Strengthening Cash Flow for a Nonprofit Organization


MGO’s strategic financial management helps a nonprofit stabilize its working capital, enhance operations, and support long-term sustainability. 


A nonprofit organization based in Los Angeles, California, retained MGO’s services to manage its outsourced back-office accounting. Working with MGO enabled the organization to keep operations financially viable so it could focus on its core mission.



In 2022, the organization faced significant cash-flow challenges due to slow grant collections exacerbated by the pandemic. These critical delays in grantor payments — some extending up to 90 days — led to a cash shortfall that had the potential to impede the organization’s everyday operations.  


Recognizing they were on the brink of missing payroll, MGO proactively reached out to the organization about its ability to cover pending costs and our team conducted a thorough financial review. We recommended utilizing their line of credit as an immediate solution and initiated an emergency discussion with their bank. We helped them secure a loan to cover the expenses and continue operations. 

MGO's strategy focused on meticulous cash management, prioritizing urgent expenses and deferring non-critical payments. We also enhanced follow-up procedures with grantors to improve collections. The approach was proactive — involving regular updates and strategic discussions with management and the board to foster transparency and preparedness for financial decision-making. 

Value to client:

Through our strategic interventions, the organization regained financial stability, enabling them to continue their mission-critical activities without disruption. Enhanced financial reporting and communication gave management and the board a clearer view of their financial status and a new proactive approach to cash flow management. Additionally, improved follow-up with grantors laid the groundwork to prevent similar issues in the future, promoting long-term sustainability and resilience against financial shocks. 

Cash flow and MGO:

Organizations working with basic bookkeeping services often overlook the bigger financial picture. MGO provides strategic financial management and outsourced CFO or controller services, ideal for startups and entities without dedicated financial leadership. Our approach can prevent costly retroactive financial corrections and promote ongoing operational stability. 

Need strategic financial management or outsourced CFO services for your organization?

Reach out to our team today. 

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