A well-structured cash reserve policy is an essential element of strong financial stewardship in the nonprofit sector. Reserves give organizations the stability to weather revenue fluctuations, address unforeseen expenses, and invest strategically in mission-driven initiatives. Developing a clear, board-approved policy ensures consistency, transparency, and accountability in how reserves are built and used.
The nonprofit sector is entering 2026 facing its most challenging financial environment in a decade. If you're a nonprofit executive director, board member, or financial officer feeling the squeeze, you're not alone. Recent data reveals that 36% of nonprofits ended 2024 with operating deficits—the highest rate in ten years. Meanwhile, 84% of organizations that receive government funding anticipate cuts in the coming year, and 86% report that inflation continues to have a significant impact on their operations.
In the competitive landscape of nonprofit funding, where resources are scarce and donor expectations are high, effectively evaluating nonprofit program success is essential for sustainability and growth. According to recent surveys, approximately 70% of nonprofits struggle to demonstrate measurable impact, often because they select inappropriate evaluation approaches that fail to capture the full picture of program performance. This article explores nonprofit program evaluation methods, focusing on three key frameworks — goal-based, process-based, and outcomes-based — to help organizations choose the right tools for assessing new initiatives.
For many nonprofit leaders, receiving the annual financial statement audit report can feel like opening a complex book written in accounting jargon. But understanding this report is essential—it’s not just a compliance requirement; it’s a powerful tool for transparency, accountability, and strategic decision-making.
In today's competitive nonprofit landscape, organizations can no longer rely solely on passion and good intentions to demonstrate their impact. Modern nonprofits must adopt data-driven decision-making to optimize their mission effectiveness, maintain donor trust, and ensure long-term sustainability. The key to this transformation lies in implementing robust key performance indicators (KPIs) and creating actionable dashboards that transform raw data into strategic insights.
Nonprofit organizations are navigating an evolving landscape of audit requirements and best practices. Effective nonprofit audit preparation remains crucial for ensuring compliance, enhancing transparency, and maintaining stakeholder trust. In this comprehensive guide, we'll explore key aspects of preparing for your nonprofit audit, including lessons learned from recently implemented standards, emerging best practices, and strategies to navigate common challenges.
AI revolutionizes nonprofit finances by automating tasks, enhancing analysis, detecting fraud, optimizing costs, and empowering informed decision-making for social impact.
Organizations face unprecedented challenges and opportunities in the ever-evolving landscape of nonprofit fundraising. The post-pandemic era has accelerated the shift toward digital fundraising, but traditional methods remain essential for building strong donor relationships and securing significant gifts. As nonprofits navigate this complex environment, it's crucial to strike a balance between digital and traditional fundraising strategies to ensure long-term sustainability.
In an era where data breaches cost organizations an average of $4.45 million per incident, nonprofits and faith-based institutions face heightened risks due to their reliance on donor trust and sensitive financial data. As cyberthreats evolve and privacy laws tighten, safeguarding donor information is no longer optional—it’s a strategic imperative. For nonprofit administrators and leaders, implementing advanced data protection strategies ensures compliance, preserves reputation, and secures the foundation of community support.
In the ever-evolving landscape of nonprofit funding, federal grants remain a crucial lifeline for organizations striving to make a difference. Recently, a significant shift has occurred in how these funding opportunities are presented, with the introduction of simplified Notices of Funding Opportunity (NOFOs). This change promises to reshape the way nonprofits approach and secure federal funding, potentially opening doors for a more diverse range of organizations.
