Understanding financial concepts is critical for non-profit board members, and in this episode, we break down two essential yet often confused terms: illiquidity and insolvency. These financial states can significantly impact an organisation's ability to fulfil its mission, and knowing the difference is key to proactive management. We cover: The distinction between illiquidity (short-term cash flow challenges) and insolvency (a deeper, long-term financial issue) Real-world examples of non-profits facing these issues Strategies for boards to manage illiquidity and prevent insolvency The importance of aligning operations with financial realities and building reserves How to use financial metrics to anticipate and mitigate risks Join us as we explore the proactive measures that non-profits can take to remain financially resilient and continue making a positive impact. If you want to streamline your board's administration then don't forget to check out the ⁠Our Cat Herder Board Portal⁠.