Finance Standard # 6: sustainability

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

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



> MC+LC Sustainability level 1

Each X product and BD operations fulfill following requirement:

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

> LC sustainability level 2

Each X product 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

> Core performance

Majority of our revenues should comes exchange products

> 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

Ensuring pipeline through collaborative F&L network


Is your entity healthy? 

Sustainability is not the only thing you should take care about. Check what are other essential parts of organizational health model. 

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

How to lead your finance team and why team standards are important part of knowledge for every VP? Check it in our presentation.

content: ppt

Conference sustainability

Conferences are one of the biggest costs for all our entities and it is common that they bring a huge financial liability to the organizing committee. How to keep them sustainable? Read more!

content: ppt

Grow from operations

Do you do everything what stands in your JD, but you still don't know how to help your operations to grow? 

content: ppt

Long-term financial planning

We are planning every year our annual budgets, re-planning them every quarter... But we should also look at behind our term! Long term financial planning can help you to achieve sustainability and ensure that you grow more than one year. 

content: ppt i tool

Education timeline for your LCVPFs

In order to achieve financial sustainability and legal compliance, all LCVPFs need to receive a proper education. Check our guide how to prepare basic educational timeline for your network.