Sample interview questions: How do you evaluate the financial viability of strategic partnerships with NGOs?
Sample answer:
Assessing Financial Viability of Strategic Partnerships with NGOs
1. Due Diligence:
- Examine the NGO’s financial statements to assess its stability, liquidity, and profitability.
- Review audited financial reports, including balance sheets, income statements, and cash flow statements.
- Conduct background checks on key personnel to assess their reputation and experience.
2. Revenue Streams:
- Determine the NGO’s sources of funding, including grants, donations, and membership fees.
- Assess the sustainability and diversification of revenue streams.
- Evaluate the potential impact of changes in funding sources on the NGO’s financial viability.
3. Expense Management:
- Analyze the NGO’s operational expenses, including staff salaries, administrative costs, and program expenses.
- Assess the efficiency and cost-effectiveness of expense management practices.
- Identify opportunities for cost savings or revenue enhancement.
4. Financial Projections:
- Review the NGO’s financial projections to assess its expected financial performance over the partnership duration.
- Evaluate assumptions used in the projections and consider potential risks or uncertainties.
- Determine whether the NGO has sufficient financial resources to support its projected activities.
5. Impact Assessment:
- Consider the potential financial impact of the partnership on the NGO and the corporation.
- Assess wh… Read full answer
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