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Cash flow projection of unrestricted funds

All unrestricted 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 is a spreadsheet usually showing the next 6 - 9 months by month, see https://docs.google.com/spreadsheets/d/1w4aGpYILmlyulESt6aw4rZbgFk8TGp0gsU2xhYijdZ4/edit#gid=1975938868

Look at the tab "Summary of current model" first, then "Current model".

Income

1) monthly regular giving : fairly predictable,

2) additional donations from rebellion fundraising: fairly unpredictable,

3) any other income such as grants from UMI,

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 July-Dec 2021.

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

7) petty cash, to be used for ad hoc or unforeseen expenses,

8) reserve for strategic projects : e.g. Gardeners project, contributions towards legal costs for protecting XR's intellectual property, other as yet unknown projects.

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 th cash flow. This may differ from the predicted amount and becomes the brought forward amount and is the only actual, known figure, others being less certain the further forward in time they are. Then the column with the previous month’s details is hidden and a new month added at end. 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. 6 "shared services" circles : Actions, M&M, ALS, Finance, Fundraising, Digital. They are separated from others and regarded as "critical" because XR would soon collapse if they could not function. This is contentious because they may be seen as elite or top of a hierarchy.

  3. Non "shared services" central circles from Hive, Operations and Sys & Cul

  4. XR Youth

  5. Global Support (as at 5 Oct 2021, this is 0).

  6. Strategic Projects such as Strategy Assembly, the Gardeners project and a reserve for others such as IP (legal advice to M&M for Intellectual Property protection).

  7. 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?

  8. 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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