Financial Plan

Financial Plan

For the development of a financial plan, some assumption needs to be assumed so we can make a reliable estimate of future cash flows and get prospective figures that are close to our real activities. The Art of Charity has prepared a financial plan based upon some assumptions and normal market trends. These are complex and judgmental, so they can’t be assumed as real-time cashflows but provide expected cash flows that are close to reality.

These assumptions can be summarized as follows:

  • The funds forecast for Year 01 is assumed according to the normal industry trend.
  • We expected that our growth rates of 25% each year.
  • Statement of Activates shows the Net Surplus / (Deficit) according to our assumptions.
  • We have assumed that there will be no bill receivables and payables at each year-end.
  • We have assumed that the Expenses on Activities will be 60%, 70%, 75%, 80% and 855 for Year 01,02,03,04 and 05 of Funds.
  • We have assumed that there will be a 5% increase in operating expenses every year.
  • To enhance the reliability of this business plan, we have prepared a sensitivity analysis to show that how the Net Surplus / (Deficit) will be impacted by a 15% increase or decrease in funds.

Statement of Activities:

Projected Balance Sheet:

Projected Cashflow Statement:

Sensitivity Analysis (Increase in Funds):

Sensitivity Analysis (Decrease in Funds):