Financial sustainability for nonprofit organizations requires more than balancing a budget. It requires a clear understanding of financial health, liquidity, funding risks, cash flow, and the decisions that can support an organization’s mission over the long term.
In this session, Rajiv Seth and Jason Sturdevant discuss how nonprofit organizations can strengthen financial planning and analysis (FP&A) by bringing budgeting, forecasting, cash flow planning, and scenario planning together.
Topics covered include:
- What financial sustainability means for nonprofit organizations
- The role of FP&A in nonprofit financial management
- How budgeting and forecasting serve different purposes
- Cash flow planning and liquidity management
- Using a 13-week cash flow forecast
- Identifying funding, revenue, and financial risks
- Understanding program costs and indirect costs
- Building financial forecasts around key operational drivers
- Using scenario planning to evaluate upside and downside risks
- Connecting financial assumptions with mission priorities
- Improving financial reporting for leadership and boards
- Turning financial insights into strategic decisions
The discussion also examines why liquidity and available reserves are important to long-term sustainability and how forward-looking financial planning can help organizations identify risks before they become urgent.
