Explain the importance of liquidity in nonprofit organizations.

Explain the importance of liquidity in nonprofit organizations..

Write a 700- to 1,050-word paper, addressing the following scenario:

You have been hired as the Chief Financial Officer, a newly created position, for a rapidly growing nonprofit organization that sells discounted clothing. The organization rents a building, mortgaged at an adjustable rate, to another entity. Beginning next year, the mortgage interest rate will increase and monthly expenses will exceed monthly revenue. You estimate you will exhaust the account in six months.

Address the following points in your paper:

Describe the budget shortfall.

Generate suggestions to address the shortfall.

Explain the importance of liquidity in nonprofit organizations.

Explain the relationship between fundraising and liquidity

analysis.

Create a cash budget to alleviate future shortfalls.

Format your paper consistent with APA guidelines.

Explain the importance of liquidity in nonprofit organizations.