Help: Three statement modeling for non-profits

Hey everyone,

I’m getting involved in non-profits as a side gig from work. Think board member of a hospice for the homeless and things like that. With that, I’ll say the financial situation for non-profits is quite interesting and arguably more complex than many regional companies. It’s fun. I’ll spare much of the details and just say that I want to fully understand the linkage and implications of financial outcomes very well. Does anyone know of a resource that has 3-statement financial models for non-profits?

For everyone’s benefit, revenue is extremely volatile month over month. These organizations typically win grants that provide major windfalls every few months, so working capital management is quite tough. Add to that donations are very seasonal (more come during the December holidays), and costs are typically fixed.

Going further, the revenue that arrives often has restrictions. For example, a grant could be cost-reimbursement driven, where you can never build savings off it, and you only get paid when you spend. So if you are deficient somewhere, more grants in a certain area, might do nothing.

Does anybody have a rocket ship sort of excel model or know of a place to go to build this? Does IB exist for non-profits where there are some smart guys over top of this?

If nobody has this, I’m happy to go on my own then share / open source what I make. A bunch of smart folks trying to make the world a little better wouldn’t hurt…


Based on the WSO resources, while there is extensive information on financial modeling for traditional businesses, specific models tailored to non-profits, especially those dealing with the complexities you've described, might not be directly available. However, you can adapt the general principles of financial modeling to suit the unique needs of non-profits.

Here are some steps and resources you might consider using from WSO to build a customized three-statement model for a non-profit organization:

  1. Understand the Basics: Start with the foundational knowledge of financial modeling provided by WSO. This includes understanding the 3 Statement Model, which integrates the income statement, balance sheet, and cash flow statement.

  2. Adapt the Model for Non-Profit Specifics:

    • Revenue Modeling: Given the volatility and seasonality in revenue, you might want to create separate modules for different revenue streams such as grants, donations, and other fundraising activities. Each module can have its own assumptions about timing, restrictions, and amounts.
    • Expense Modeling: Since costs are typically fixed, this part of the model might be simpler. However, ensure you account for any potential unexpected costs or shifts in funding that could affect operational stability.
  3. Incorporate Cash Flow Management: This is crucial due to the irregularity of cash inflows. Your model should include a detailed cash management section to track liquidity and ensure that the organization can maintain operations despite fluctuating revenues.

  4. Scenario Analysis: Use the scenario analysis techniques from WSO to model different financial situations. This could include variations in grant timings, changes in donation patterns, or unexpected expenses.

  5. Resources and Learning:

    • WSO Financial Modeling Resources: Utilize the DCF Modeling Training and other financial modeling best practices guides to refine your model.
    • Templates: WSO offers financial modeling templates that you can start with and modify as needed to fit the non-profit context.
  6. Community Engagement: Since you mentioned the possibility of sharing or open-sourcing your model, engaging with the WSO community could be beneficial. You can share your progress, get feedback, and possibly collaborate with others interested in non-profit financial modeling.

While investment banking for non-profits isn't a traditional path, there are financial consultants and specialized firms that deal with non-profit financial management, which might also serve as valuable resources or inspiration.

If you decide to develop this model and need further specific guidance on adapting traditional financial models for non-profit use, the WSO forums and resources can be a continuous source of support.

Sources: How to Convince My Boss to Include Excel Modeling Into the Job?, New girl from non-target school considering IB - how to break into the boy's club?, IB or bust?, How I've managed to break into IB from a non-target (work in progress), People who knew they wanted to do IB before college: how did you reach that conclusion?

I'm an AI bot trained on the most helpful WSO content across 17+ years.

Amet quia et et corrupti. Nihil earum labore exercitationem qui. Occaecati quaerat rerum tenetur.

Asperiores dolorum quia nostrum et. Voluptatem aut ratione eum vero quibusdam earum illum. Ea dicta ut incidunt enim. Aut voluptate adipisci ut omnis exercitationem sunt facilis. Ut dignissimos provident facilis est ut reprehenderit voluptatibus quae.

Optio totam repellendus voluptates maiores dignissimos. Minima quae quia et. Sunt est officia odio accusamus. Aut ut soluta id consequatur modi.

Dolores qui exercitationem architecto explicabo velit asperiores iste. Laboriosam et perspiciatis saepe aut nostrum quidem sed. Sit voluptatem ut quis consequatur iusto sit. Neque omnis iste modi.

"If you always put limits on everything you do, physical or anything else, it will spread into your work and into your life. There are no limits. There are only plateaus, and you must not stay there, you must go beyond them." - Bruce Lee

Career Advancement Opportunities

June 2024 Investment Banking

  • Jefferies & Company 02 99.4%
  • Perella Weinberg Partners New 98.9%
  • Lazard Freres 01 98.3%
  • Harris Williams & Co. 24 97.7%
  • Goldman Sachs 16 97.1%

Overall Employee Satisfaction

June 2024 Investment Banking

  • Harris Williams & Co. 19 99.4%
  • Lazard Freres 06 98.9%
  • JPMorgan Chase 09 98.3%
  • William Blair 03 97.7%
  • Morgan Stanley 04 97.1%

Professional Growth Opportunities

June 2024 Investment Banking

  • Lazard Freres 01 99.4%
  • Jefferies & Company 02 98.9%
  • Perella Weinberg Partners 18 98.3%
  • Goldman Sachs 16 97.7%
  • Moelis & Company 05 97.1%

Total Avg Compensation

June 2024 Investment Banking

  • Director/MD (5) $648
  • Vice President (22) $375
  • Associates (94) $260
  • 3rd+ Year Analyst (14) $181
  • Intern/Summer Associate (33) $170
  • 2nd Year Analyst (69) $168
  • 1st Year Analyst (207) $159
  • Intern/Summer Analyst (151) $101
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”


redever's picture
Betsy Massar's picture
Betsy Massar
Secyh62's picture
BankonBanking's picture
GameTheory's picture
dosk17's picture
kanon's picture
CompBanker's picture
Linda Abraham's picture
Linda Abraham
bolo up's picture
bolo up
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”