Destination™ Capital
Planning Tool
Destination™ is a custom designed cash-flow focused financial planning model for non-profit organizations.
- This interactive software application allows management to analyzes the availability of financial resources relative to your current and future needs – working capital, organizational growth, capital projects and financial reserves;
- DESTINATION™ has been specifically designed for use by non-profit behavioral healthcare organizations;
- The application utilizes historical financial results derived from Form 990 or internal financial statements and is designed to be flexible and interactive. No accounting or technical expertise required to utilize the application or understand the results;
- DESTINATION™ is designed so that the key assumptions can be easily adjusted to review different scenarios; and
- The results of the analysis are intended to be simple to communicate to a non- financial audience (board or funders) both numerically and graphically.
DESTINATION™ breaks down available cash resources into categories that reflect the priorities of cash resources needed for operations, physical plant, growth opportunities, reserves and long term financial health of your organization. The application categorizes cash needs and available cash resources into “buckets” to evaluate the resources available to the identified needs of your organization. The “buckets” of cash needs that CHFF has identified include the following:
- Cash needed for basic working capital (# of days of operating expenses):
Highly liquid cash resources available to fund regular ongoing operating expenses such as payroll, utilities, lease/rent payments, benefits, etc. Recommended range of 25-45 days. - Cash needed to maintain existing facilities and equipment ($ in 000s):
Amounts needed on an ongoing basis for basic maintenance projects and minor capital expenditures. - Cash needed to protect the organization from expected risks (# of days of
operating expenses):
Annual spending for routine capital expenditures such as maintenance of buildings and purchase of small equipment. - Working capital for new or expanded business lines ($ in 000s):
Financial resources needed for startup costs related to new or expanded programs and services that are being planned. These costs might include hiring of staff, training, proposal development, legal costs, development of systems, facilities and equipment, and initial operating deficits. - Funds for Building, expanding or replacing capital assets ($ in 000s):
Funds needed to purchase new physical assets or to fund construction or renovation of buildings. This could include major equipment purchases including electronic health records and other Information Technology projects including hardware and software and the associated costs of installation and implementation. - Funds to protect the organization from unexpected risks ($ in 000s):
Funds that are designated by management and the Board to be available for unexpected risks, opportunities or ongoing changes in the organization’s economic and service environment. Funds for a “Rainy Day”.