What were your goals for 2026 and will they be different for 2027? Many non-profit’s have goals that revolve around the following:
Raise more money.
Diversify funding.
Hire staff.
Launch a new program.
Apply for larger grants.
Build reserves.
Attract more volunteers.
Expand current programs to serve more people or serve at a higher level
Did you notice that almost all of them have financial implications? Yet in so many cases, small to medium nonprofits are unable to consistently maintain accurate financial records needed to make and follow through successfully with their plans.
Here's what I mean.
Imagine you're planning to hire a new Program Manager next year. Before making that decision, you'd probably want to know:
Will the position be funded by reliable recurring revenue or unsecured, sporadic fundraising
Can we afford the full cost including salary, payroll taxes, benefits, equipment etc?
Do we have enough cash to support the position during low revenue months?
What financial benefit will this role yield or what capacity will it create?
These are simple questions but they depend on one thing:
Accurate financial records.
Without them, you're not really making financial decisions. You're making educated guesses and that's where problems start.
For example, you anticipate that a grant will be awarded in a particular month and hire based on that only to face unexpected situations like:
The funding falling through with a sudden delay or reduction
The hire ending up costing more than expected
Cash getting tight during certain months
The expected benefits of the hire not materializing
What's interesting is that these often look like budgeting problems but they are not. Because every budget, forecast, fundraising goal, and financial plan starts with the same foundation:
Accurate books.
Think of it this way.
If your current financial records aren't reliable, it doesn't matter how sophisticated your budget is. The plan is only as good as the numbers behind it.
That's why one of the most valuable questions a nonprofit leader can ask is:
"How confident am I in the financial information I'm using to make decisions?"
Before you can create a realistic budget, forecast cash flow, prepare grant reports, or set fundraising goals, you need confidence in the numbers you're starting with. That starts with maintaining ongoing accurate books.
If you are behind on your books or are not confident the numbers are accurate, you may be making decisions without knowing your true financial position. So before you set goals, spend, hire etc. or even take your budget to the board, lets get your numbers in order.
This is a no-cost, no obligation, conversation to get clear on where you are and what next steps are right for you.
Cheers to your impact
Carol
PS: With the fundraising season kick-off in the next few weeks, now is the time to make sure your newsletter is doing more than sharing updates. The resources below can help you turn your newsletter into a tool for engaging donors and raising more money.
1) Never wonder what to say in your newsletter or on social media again. Get the Nonprofit Email Newsletter Content Vault with
200+ Story prompts covering ALL areas including fundraising, impact, volunteering, education, crises response etc.
A simple story collection form to gather stories from stakeholders so you’ll never start with a blank screen again.
There are also subject lines and clear calls to action that drive-up open rates.
CLICK HERE to access it.
2) If you want to turn your newsletter into a fundraising engine while writing less, then you need the Automated Email Sequences. Welcome your supporters, nurture them, turn them into donors and keep them engaged year round. The templates are Done-For-You. Just plug-and-play, set them up once and let them run in the background while you focus on your mission. CLICK HERE to access it