borrow money from pessimists, they donít expect to be paid back. Anonymous
financial resources are there to meet a number of different needs:
day-to-day operation (working capital).
upgrading and replacement of assets (equipment, skills, intellectual
up reserves for expansion or unexpected situations.
fees and dues.
indication of the state of the financial resources of an organization can be
gleaned from its accounts, noticeably the balance sheet and profit & loss
account (income & expenditure account for non-profit organizations).
However, financial accounts are notoriously bad at giving a clear picture of the
financial health of an organization.
resources cover not only those immediate resources that an organization has, such as
cash and readily saleable investments, but also potentially what it could raise
due to its reputation and the strength of its relationships with others. Raising
medium sized amounts of money is often more difficult than raising very small or
very large amounts. If the financial resources of the organization are to be
increased and strengthened from external sources, then the organizations needs
good relationships with other parties - the stock-market for a company, the
Parent Teacher Organization for a school, or the general public for a charity. There are many sources of finance for
small concerns, from venture capitalists who want a stake in the business, to
charitable trusts which are prepared to help extremely risky or what others would regard as
undeserving causes. >>>