Summary

an oval with a dollar sign lit up and the words Financial Stability on itEstablishing an accurate agency budget and paying close attention to your true unit costs is the first step toward financial stability.  The goal is for revenue to exceed outlay, providing you with a margin to protect you in difficult times.  Building your reserves and constantly being on the lookout for new revenue sources is your ongoing sustainability goal. 

The starting point is determining your true unit costs based upon your overall budget.  Be sure you can identify direct and indirect costs as you determine the unit cost of your service.  Remember that no more than 30 percent of your outlay should be indirect costs.

 

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