Is there a formula for financial capacity of organizations?

Question

I am thinking there has got to be a formula out there, taking a non-profit organization's annual budget into account, that determines how much funding is reasonable to ask for from a donor. We have the opportunity to apply for a big grant, but I don't want to get rejected just because we ask for too much.

Answer 1

Hi

I think the basic formula you are talking about is cash flow

your expected cash inflow - expected cash outflow = financial capacity of your org

cash in flow can be from different sources, internal or external