“Cash Management in Financial Stability of Non-profit Organizations in the First District of Batangas”

BOA, MARY GRACE P. BUCAD, ROSARIO H. MACATIGBAC, CLAIRE O. MENDOZA, P-JAY M.

Rationale Statement of the Scope of Limitations Significance of the Study Related Research Theoretical References
Problem and Delimitations Literature Framework
The purpose of this The study aims to The study aimed to The study serves as a basis According to Blalack, H. M. According to Anderson, O. (2019).
study is to examine know the determine the to gain more knowledge (2016), there are countless “Corporate Cash Financial Stability in
the effectiveness of effectiveness of cash effectiveness of cash about the cash takeaways from the research Management” book by Not-For-Profit
cash management in management in management on the management on the and investigations regarding Steven M. Bragg, CPA Organizations: A case
nonprofit financial stability of financial stability of non- financial stability of Non- techniques used to promote (2014), cash study. FINANCIAL
organizations in the nonprofit profit organizations in profit Organizations in the and preserve financial management involves STABILITY IN NOT-
First District of organizations in the the First District of First District of Batangas. stability. Each nonprofit that the oversight of every FOR-PROFIT
Batangas. Effective First District of Batangas. It seeks to The researchers was interviewed mentioned cash inflow and outflow ORGANIZATIONS: A
cash management is Batangas. The identify how effective believe that the result of diverse means of monitoring that a business CASE STUDY.
essential for all owner/project cash management can the study may serve some expenses. For example, experiences, with the https://digitalcommons.
organizations, but it manager are the enhance financial practical values and would monitoring printer use, goals of always having salemstate.edu/cgi/view
is particularly respondents of this management, ensuring be beneficial to the accepting in kind donations, enough liquidity to content.cgi?
critical for study. This seeks the sustainability and following: using connections to receive operate the business, article=1261&context=
nonprofits due to the answers for the operational efficiency of reduced rent expense, and and finding the best honors_theses
reliance on following questions: the organizations. More To the Owners/Project hiring temporary workers possible use for any
unpredictable specifically, it examines Managers. This study is are a few mentionable remaining liquidity. The Blalack, H. M. (2016).
funding sources and 1. What is the profile how it affects liquidity beneficial for the approaches to saving money key aspects of cash The Financial Stability
the mission-driven of the nonprofit management, owners/project managers in times of low income. management are: of Nonprofit
nature. Unlike for- organizations in information aggregation as it offers actionable Additionally, various forms Organizations. Finance
profit entities, which terms of; and risk mitigation. insights about cash of raising funds exist and Information Undergraduate Honors
generate revenue 1.1. Type of Based on the findings, management. By can be taken advantage of if aggregation. It is Theses Retrieved from
through sales and Organization; this study will provide understanding how cash conducted properly. impossible to manage https://scholarworks.ua
business operations, 1.2. Annual recommendations to management impacts their However, it is evident from cash without knowing rk.edu/finnuht/29
nonprofit Revenue; improve the cash financial stability, they can the research that what may where it is, when more
organizations depend 1.3. Years in management of be informed to optimize be successful for one is expected, and how
on external funding Operation? nonprofits in the First their cash flow and organization is not always soon it will be used. Bragg, S. M., CPA,
such as donations, District of Batangas. financial stability. efficient for all nonprofits. This knowledge AccountingTools, Inc.,
grants, sponsorships, 2. How do nonprofit The scope of this Despite the innumerable requires an excellent & The CPE Store, Inc.
and income from organizations study is limited to non- To the Finance Manager. challenges faced by NPOs, information aggregation (2014). Corporate Cash
unrelated business conduct their cash profit organizations They can use the findings leaders are extremely system that reveals Management (2nd ed.).
activities. This management key operating within the First of this study to advise the passionate in promoting the where the company is The CPE Store, Inc.
financial structure aspects with regard District of Batangas, organization on optimizing mission and doing whatever currently storing cash,
makes it imperative to: particularly those their cash management to it takes to get the and the nature of its http://www.cpestore.co
for nonprofits to 2.1. Information engaged in social maintain financial stability. community and other short-term receivables m/pdf_courses/B12580
adopt strong cash Aggregation services, education, To Government Agencies individuals on board as and payables. 2/B125802_141554425
management 2.2. Liquidity healthcare, and and Policy Makers. This well. No opposition is 4_book.pdf
strategies to ensure Management community development. study can inform policy enough to discourage Liquidity
they can sustain their 2.3. Risk The research will focus decisions aimed at nonprofits from chasing Management. With an
operations and fulfill Management exclusively on these supporting nonprofit after the ultimate goal and adequate knowledge of Chintha, S. S., &
their mission without organizations, assessing organizations in managing doing whatever is necessary cash flows in hand, it is Prasad, K. V. (2021). A
disruptions. 3. How may the their financial records, their finances effectively, to leave a lasting impact on then possible to invest Study on the Impact of
Nonprofit assessment on cash cash management potentially to the the community. excess funds or acquire Cash Management on
organizations often management of strategies, and financial development of programs Cash is the most debt in an orderly the Financial
face financial nonprofit stability over a specified or initiatives to provide liquid account of the manner, so that Performance of the
challenges due to the organizations in the period. resources for better organizations. Cash sufficient cash is always Listed Manufacturing
fluctuating nature of First District of This study is management practices. management is very critical on hand to meet the Companies from
their income Batangas affect the delimited to exclude non- in the financial management operational needs of the Muscat Securities
streams. While some financial stability profit organizations To the Batangas State of organizations because business. Market, Sultanate of
funding sources may and performance of outside the First District University. This study can inefficient cash management Oman. International
be stable, others, the organization? of Batangas, as well as serve as a reference will cause the non-profit Risk Management. Journal of Business and
such as donations governmental or for- material with the necessary organization not to pay their The company’s Administrative Studies,
and grants, can vary 4. Based on the profit entities. Only non- information to equip the current bills which cause business partners 7(1).
significantly based results, what plan of profit organizations that students as would be business failures and even should be regularly https://doi.org/10.2046
on economic action may be actively engage in social professionals in the field bankruptcy. Time value of evaluated to see if their 9/ijbas.7.10003-1
conditions, donor proposed to enhance and community services they have chosen. money and inflation financial circumstances
priorities, and the cash within the district will be highlight the cash could lead to failure, Kucukbay, F. (2016b).
external factors management of included. Other financial To the Present management. Non-profit which may call for Cash Management in
beyond the nonprofit management aspects, Researchers. This study organizations are different changes in credit Non-Profit
organization's organizations in the such as investment will engage the researchers in many ways from profit policy; this examination organizations. In
control. Without a First District of strategies or revenue to deepen their organizations. Non-profit can extend to entire Advances in public
strategic approach to Batangas? generation models understanding about cash organizations are founded groups of partners or policy and
cash management, beyond cash management. for their main mission such geographic regions. administration (APPA)
nonprofits may management, are outside as protecting the Further, the company’s (pp. 94–110).
struggle to cover the study’s scope. By To the Future environment, saving foreign exchange https://doi.org/10.4018/
operational clearly defining these Researchers. This study animals, etc. whereas profit holdings should be 978-1-5225-0731-
expenses, leading to parameters, the research adds to the body of organizations are founded continually reviewed to 4.ch005
financial instability aims to provide targeted knowledge in the field of for maximizing their profit. see if any hedging
that could affect insights into finance and contributes to Furthermore, non-profit transactions should be Paidipally, P., Mr. M.
their ability to strengthening the further research on similar organizations’ indebtedness enacted to offset the SAIDA RAO, &
deliver essential financial stability of topics. This study can give structure and working risk of currency DEPARTMENT OF
programs and nonprofits in the First information about the capital structure are fluctuations. The same MBA MALLAREDDY
services. District of Batangas. effective cash management different from profit methodology can be UNIVERSITY,
 Effective that must be employed in organizations. They have an applied to fluctuations HYDERABAD. (2023).
cash management different areas of business advantage over profit in interest rates. A STUDY ON CASH
involves closely especially in non-profit organizations such as tax Effective cash MANAGEMENT.
monitoring inflows organizations. breaks and lower cost. But management in Journal of Engineering
and outflows, non-profit organizations are nonprofits begins with Sciences, 14(05), 544–
optimizing cash usually cash poor information 545.
reserves, and organizations. And the cash aggregation, which
ensuring that the flow usually fluctuates at involves tracking cash https://jespublication.co
organization has the non-profit organizations. inflows from donations, m/upload/2023-
sufficient liquidity to This situation makes cash grants, and fundraising
V14I5071.pdf
meet its daily management critical in non- efforts while
commitments. It profit organizations. A non- monitoring outflows
allows nonprofits to profit organization that such as program Sarumathi, Praveen
allocate resources gives importance to cash expenses, Kumar, S., &
efficiently, reducing management has an administrative costs, Department of
the risk of cash opportunity to be more and salaries. A well- Management Studies,
shortages that could successful compared to the structured financial Bharath Institute of
lead to operational others. Non-profit tracking system enables Higher Education and
disruptions. organizations are usually non-profits to anticipate Research, Selaiyur,
Moreover, proper just concerned about their cash needs, avoid Chennai-600073, Tamil
cash management mission and sometimes they shortfalls, and plan for Nadu, India. (2020). A
fosters ignore the cash management future sustainability. In study on cash
accountability and area. In this situation, a non- liquidity management, management. In Malaya
transparency, which profit organization will face non-profits often Journal of Matematik:
are essential for a lack of cash which causes experience irregular Vol. S (Issue No. 2, pp.
maintaining the trust the non-profit organization funding due to the 2904–2910).
of donors, to face insolvency timing of donations and https://www.malayajou
stakeholders, and (Kucukbay, 2017). grant disbursements. rnal.org/articles/MJM0
regulatory bodies. Ensuring sufficient S200758.pdf
When donors Based on the study of liquidity helps these
contribute to a (Sarumathi, P. K. et al., organizations sustain
nonprofit, they 2020) the cash flow operations even during
expect their funds to statement shows that net periods of funding
be managed increase in cash generated delays. This can be
responsibly and used from operating and achieved by
for their intended financing activities is much maintaining cash
purpose. A well- more than the previous year reserves, prudently
structured financial but cash from investing investing surplus funds,
system enhances activities is negative in both or securing short-term
credibility, making it year. There is increase of credit facilities when
easier for Rs. 851324604. in Increase necessary. Additionally,
organizations to in cash & cash equivalents risk management as
attract future funding from previous year. non-profits are
and build long-term Therefore, analysis of cash vulnerable to risks such
relationships with flow statement shows that as donor dependency,
supporters. cash inflow is more than the economic downturns,
The cash outflow in CAMEO and fluctuations in
principles of LTD. grant funding. Regular
effective cash assessments of funding
management align The results of the research sources and financial
with global by Chintha, S. S., & Prasad, partners help mitigate
development K. V. (2021), cash these risks, while
objectives, management has been organizations operating
particularly the identified as one of the most internationally must
UNESCOS’s important aspects to be also consider currency
Sustainable effectively managed. A exchange rate
Development Goals, business firm with a fluctuations that may
SDG 16: Peace, soundAll the alternative impact financial
Justice, and Strong hypotheses have been resources.
Institutions, which accepted as the statistical By implementing strong
emphasizes the tools indicate one cash management
importance of hypothesis where the null strategies including
transparency, has been accepted, and the effective tracking,
accountability, and alternative is rejected. liquidity planning, and
effective governance Therefore management of risk mitigation,
in organizations. Sultanate of Oman nonprofits can enhance
Strong financial manufacturing companies their financial stability,
management ensures needs to confirm an ensuring they have the
that nonprofits adequate cash management necessary resources to
remain accountable control to ensure that there fulfill their mission and
to their stakeholders, is optimal cash where there sustain long-term
uphold ethical are strategies to be in place operations.
standards, and during minimal cash in hand
maintain institutional and surplus cash in hand.
integrity.
Conceptual Framework

INPUT PROCESS OUTPUT

Profile of respondents in
terms of:

1.1 Type of Organization

1.2 Annual Revenue  Use of Proposed Plan of Action to
1.3 Years in Operation Questionnaires enhance the cash
 Statistical Treatment management of nonprofit
organizations in the First
Cash Management key  Interpretation and District of Batangas
aspects in terms of: Analysis
1.4 Information
Aggregation
1.5 Liquidity
Management
1.6 Risk Management
The input consists of profile of the nonprofit organizations such as type of organization, annual revenue, and years in operations. It also includes the cash management key aspects with the reference of information aggregation, liquidity management and risk
management.

The instrument that we will use is a self-conducted questionnaire. All date that will be gather from the instrument will go through statistical analysis for the interpretation to help the researchers to come up with the best strategy to the study. The arrows show
the relationship among the content of paradigm.

The first arrow represents the importance of the variables in the input for the further processing of data.

The second arrow indicates the role of information accumulated after processing in determining the best output that researchers can come up based on the findings of the study.

Lastly, the third box present the proposed plan of action as the output of the study which will help nonprofit organizations even the students or academe to understand and have insights about the effective cash management in terms of information aggregation,
liquidity management and risk management in ensuring financial stability of nonprofit organizations.