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Financial model : cash flow projection

All income and the expenditure using that income is depicted in a Cash Flow Projection. This is used to model likely future outcomes from different scenarios of income and expenditure and helps IBG to decide how much budget can be given out. It was originally a spreadsheet showing the next 6 - 9 months by month. This was enhanced to be a more precise financial model showing actual income and expenditure to date and budgetted amounts for the future, here

Income

1) monthly regular giving

2) additional donations from rebellion fundraising: fairly unpredictable, only included for modelling different scenarios,

3) institutional donors: fairly unpredictable, only included for modelling.

Expenditure

4) regular, essential costs, or "keeping the lights on" e.g. software licences, servers, Zoom accounts, warehouse rent, warehouse rates, tax, accountancy

5) movement costs : these are nearly all VLE for ongoing, regular work, not for a rebellion or action, usuallly decided by IBG at 6 monthly intervals. The current movement budegt runs Dec 2022 - May 2023.

6) rebellion costs: with no other info, assumed to be around 40% of extra fundraising from the rebellion fundraiser

Maintenance of the cash flow projection

The cash flow should run for a rolling 6 - 9 months. Each month, the actual balance of unrestricted funds up to the end of the previous month is advised by Finance around the 7th - 10th of the current month and entered into the model. At no time should the balance carried forward be below 0 without agreement with Finance. Without extra fundraising from rebellions, the balance will eventually fall below 0 because XR's regular expenditure exceeds regular income.

Some entries will have been agreed and the rest are an estimate as follows. Each row of expenditure in the cash flow excluding regular costs and rebellion costs represents a chunk of funding to be granted by IBG to a section of the movement :

  1. 12 Nations and Regions, divided equally. A nation/region which is underspending consistently can offer their budget to another nation/region or return it as unused.

  2. central circles

  3. XR Youth

  4. MOV (Marginalised and Oppressed Voices) - fixed monthly payments into a reserve from which a budget has to be agreed. If not spent 1 month, it accumulates for how long before it is returned?

  5. ISN - funded through an agreement which can be changed by negotiation but any change only takes effect 6 months later. ISN is currently paid a minimum 5,000 / month and this amount increases if XR UK's monthly unrestricted income exceeds a threshold, currently set at 40,000. The increase is 1/8 of the extra income and is spread across future months or previous months so that the total paid in any month has a maximum of 10,000. The maximum paid to ISN in any calendar year has a maximum of 120,000.

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