Financial Management for NonProfit Organizations 2018-12-06
Financial Management for NonProfit Organizations E-mail: erasmus.MICHALSKI@gmail.com www: HTTP://MICHALSKIG.UE.WROC.PL/ Mobile: 48.503452860 Next meeting: 7th April [EXAM]. Reading material: http://skroc.pl/fmno1 | http://skroc.pl/fmno2
NonProfit Finance cases: Hospital / Medical service School (of something: primary, cooking, musical etc.) Religion based home of help (ex-drunks, ex-addicts, orphanages, etc.) Donation based WOŚP etc. Commune businesses: water-supply institutions ….
CASE3: water-supply institution Nonprofit water-supply institution. People will paid 4€ for 1m3, in 40ooo town. Average water demand is 8m3 monthly per one person. Fixed Costs: 600ooo monthly, | Variable Costs: 1,3 € per every customer and 1,6 per every m3. Waterworks equipment cost 48ooooo€ will be covered in 40% by debt (kd=7%) and the rest 60% by equity (unleveraged beta for water utility = 0.51) [ http://pages.stern.nyu.edu/~adamodar/New_Home_Page/datafile/Betas.html ]. Economic time of life is 8 years. NWC: 10ooo Number of customers (in 000): Year: 200X | 200X+1 | 200X+2 | 200X+3 | 200X+4 | 200X+5 | 200X+6 | 200X+7 | 200X+8..n | Q: 37 | 38 | 36 | 34 | 33 | 32 | 36 | 38 | 39 |