Measure the working capital required to sustain reimbursement-funded programs while waiting for funder payments, and quantify the financial cost of carrying that exposure.
About this diagnostic
Estimate the average working capital tied up in reimbursement-funded activity when program spending occurs before payment is received. The diagnostic converts annual reimbursable spending into a daily operating requirement, applies the average reimbursement cycle, and estimates the annual cost of financing that working-capital exposure. The calculation assumes reimbursable spending occurs reasonably evenly through the year. For more information, visit our Nonprofit Consulting practice.
Reimbursement working capital
Reimbursement cycle
Program spending accumulates into working-capital exposure until reimbursement is received.
Exposure drivers
Select a driver to see how it changes the reimbursement burden.
Selected driver
What changed
