Creating a feasible budget is never easy, but it’s even more challenging during questionable economic times. That was the case for the Arc of Yates, an amazing organization in New York State that provides a wide array of services for individuals with developmental disabilities in Yates County. For many non-profit organizations, funding often comes from local, state and federal sources. Given the current economic climate, Arc of Yates was faced with the prospect of slashed budgets on every governmental level, effectively leaving the organization with a fraction of the funding they have enjoyed previously.
With uncertainties as to where that funding would originate, Arc of Yates utilized risk analysis software @RISK to explore which areas of funding were most likely to be affected. Using probability distributions, Arc of Yates could forecast what portion of the current budget stream may not be available over the next three years. Subsequently, the organization could develop strategies to explore alternative means of funding. Now Arc of Yates has a clear plan of action to meet upcoming budgets for the foreseeable future.
We think Arc of Yates’ use of @RISK is a great example of how Monte Carlo Simulation can empower organizations and lessen the concerns and uncertainties that accompany a struggling economy. Knowing where potential shortfalls may occur offers decision-makers the foresight and flexibility to stay in front of budgetary gaps. On a personal level, it’s great to know that we were able—in some small way—to further the effort of a truly fantastic organization.
VP, Palisade Corporation