Integrating Financial Health Assessments into Your Organization’s Planning Process [SUBSCRIBERS-ONLY]

The markers for tracking and assessing a nonprofit organization’s financial health are not a mystery. The key elements of financial health (operating reserves, funding, and operational expenses) are generally easy to identify and understand. You just need a willingness to keep your eyes open and a commitment to pause and make an honest assessment of a financial picture that has most likely been changing.

The biggest challenge is making the commitment to periodically pause and judge which direction the key markers of financial health are trending (up or down). This is especially important during disruptive times, such as when strategic plans need to be modified, constituent needs have shifted, or when economic conditions have taken an unexpected turn.