Finance Standard # 6: sustainability

To ensure sustainability of the organization while maintaining healthy and effective programs.

This standard describe how healthy and sustainable prorams or entities look like based on financial indicators.



> MC+LC Sustainability level 1

Each X program and BD operations fulfill following requirement:

(Direct revenues of LCs&MC - direct costs LCs&MC) > 0 EUR

> LC sustainability level 2

Each X program and BD oprerations in LC fulfill following requirement: 

(Sustainability level 1 of LC - (conferences and meeting costs of LC * of members in the area in the LC) > 0 EUR
             members in the area in the LC = number of members in the area/total number of members


> MC+LC sustainability level 3

Total revenues of  LCs&MC - Total costs of  LCs&MC > 0 EUR

> Months of Finance Reserves (MoFR)

Evaluate your financial sustainability according following formula:

MoFR <=0  - Critical financial situation
0 < MoFR < 3 - Dangerous situation
3 < MoFR < 6 - High risk
6 = MoFR - Optimal situation
6 < MoFR - Unnecessary reserves 

      Months of Finance reserves = Current equity/Average costs of 12 previous months

> Liquidity

Every quarter check your liquidity, the optimal values are mentioned below:

Cash (bank account + petty cash) / Short term liabilities =>1
(Cash + short term liabilities) / Short term liabilities >1,3 (shouldn't be higher than
Current assets/Liabilities

> Debt ratios

Every quarter check your liquidity, the optimal values are mentioned below:

Liabilities (short-term &long/term] / Current assets <1

Liabilities / Own equity < 3

Equity >0


Is your entity healthy? 

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Role of financier

What is really VPF role about? What should you take care about? Check if you haven't forget something!

Synergy with operations

If you want to go fast, go alone. If you want to go far, go together. 
African proverb
Keep your colleagues updated what you are doing. Share you knowledge and learn from them. We won't make exchanges happen without them!

Sustainability awards IC 2016

Time to appreciate entities striving for sustainability is here. Learn from applications how you can contribute to the achievement of this goal in your entity!

Monthly MCVPF call

What has happen there? Have you miss one of our meetings with lovely AIF? Then don't hesitate to check it out!

Monthly checklist

Find all monthly checklist for MCVPF in one place! Plan your term with it or simply check if you haven't forget anything this month!

Team Standards for Financiers


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Conference sustainability


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Grow from operations


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Long-term financial planning


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