Nonprofits are facing economic shifts, evolving donor priorities, and regulatory changes. That’s why we recently hosted the “Setting your Nonprofit up for Financial Success in 2025” webinar. The session was hosted by James Torrico, Senior Accounting Manager at Scrubbed. It was designed to equip nonprofit leaders, founders, and board members with the tools and strategies needed for success in today’s rapidly evolving environment. Our panelists, Satoshi Steimetz, CFO at Playworks, and Marta Kiesling, Managing Director at Dunleavy & Associates, generously shared their expertise on building financial resilience, managing cash flow, diversifying revenue, and engaging your board for long-term success.
Don’t miss out! Tune in to Episode 1 of The Beehive Podcast—Future-Proofing Your Business: Cultivating a Culture of Control.” Discover how to safeguard your organization while fostering trust, integrity, and adaptability.
Building Financial Resilience in an Uncertain Landscape
This year’s economic climate has already posed unexpected hurdles for nonprofits. Grant delays, funding uncertainty, and rising costs make it more important than ever to budget with flexibility and caution. Satoshi Steimetz emphasized the importance of staying informed during these challenging times. “For us to gauge that risk, we have to have conversations with those that are at risk… We’re engaging with consultants who are experts in the field of federal funding. As things change, we are informed about if that’s good news, bad news, or neutral. So that serves as a foundation for identifying the risks.”
Marta Kiesling added that nurturing relationships across all revenue channels is vital. “Shoring up those relationships and not only with grant funding but with your other types of charitable revenue channels, major donors, and corporate sponsors is important to make sure you’re in good stead. And you know what the reality is because, for the corporate sponsorships too, there might be some changes as the tariffs hit and their available dollars change, their marketing priorities change.”
There are some steps you can take to address these challenges and build more resilience into your financial operations. Our experts suggested:
- Proactive Cash Flow Management: Cash flow gaps are a common challenge, especially with grant delays or unpredictable disbursements. Satoshi emphasized the importance of long-term forecasting. “I recommend that you look out at a minimum 18 months because things that happen today will affect things that don’t seem important at the moment but will be critical further down the road in terms of lines of credit,” he said. He added that being conservative with revenue assumptions is essential to avoid overcommitting.
Marta suggested staying vigilant with receivables and communicating proactively with funders: “We are finding with some of our clients that they may be experiencing delays because other organizations they’re working with may have cash flow issues as well. So, knowing who tends to run late and staying on top of them, making sure they have the documentation they need, is important.” - Use Scenario Planning: Marta advised that financial planning should go hand in hand with scenario planning to identify areas where your nonprofit may be overextended or misaligned with current needs. Marta highlighted a nonprofit she’d worked with recently on scenario planning. “They hadn’t really thought about the fact that they had excess square footage and excess geographies and where they had their real estate because the demographics had changed. They were just kind of humming along, and now they have to look at things like that,” she said. “So, wherever you can, reconsider where the dollars are going.”
Scenario planning is also valuable for uncovering potential gaps in risk and SOX compliance, helping organizations proactively manage both operational and regulatory vulnerabilities. In some cases, leveraging real estate accounting solutions can further optimize financial strategies tied to property and location-based assets. - Build Your Operating Reserves: The panelists advised budgeting for the full cost of operations, including liquidity, reinvestment, and reserves. “Don’t just budget to meet your day-to-day needs,” said Satoshi. “Budget beyond that so that you’re building capacity for your organization.”
While it takes time and discipline to establish reserves, doing so will give you greater flexibility and sustainability, especially in times of financial strain.
Scaling Strategically
The panelists cautioned nonprofits against scaling too quickly. It’s crucial to approach scaling with strategic intention and financial discipline. “What often triggers rapid expansion is that a source of funding landed in your lap,” explained Satoshi. “But you need to separate the impact of that restricted grant and still understand what your operations are doing for you.” In other words, nonprofits must resist the temptation to scale just because the money is available. Instead, leaders need to evaluate whether the growth opportunity aligns with their core mission and whether your infrastructure can support it long-term.
Marta echoed this point. “You don’t want to experience mission drift based on a financial opportunity,” she said. “It really needs to serve the needs of your constituents. Why are you in business? What gap are you trying to fill?”
Diversification also plays a role. Marta described a nonprofit that expanded its programs because it could tap into earned revenue. “Because there was an earned revenue component they could capitalize on, it wasn’t all going to lean on the charitable revenue side,” she said. “The opportunity to scale that earned revenue piece made a lot of sense for them.”
Outsourcing for Flexibility and Expertise
“Rather than carrying significant headcount, you can provide [flexibility] by outsourcing some of the typical functions that an organization needs,” Satoshi said. “In our case, Scrubbed is one of the tools we use to outsource. I have the flexibility to spend more, spend less depending on the needs of the organization, and don’t have to deal with the pain of hiring and laying off.”
Marta echoed the benefits, especially for smaller organizations: “There are some outside accounting firms that do specialize in small nonprofits and do the outsourcing of the controller role, and we’ve seen some great success. It can be much less expensive than hiring.”
Diversifying Revenue Streams for Long-Term Stability
In the Q&A section of the webinar, Revenue diversification emerged as the top financial challenge for attendees. Marta encouraged them to look at the whole picture, saying, “The right mix depends on the organization, and the right mix today may not be the right mix down the road.” She advised starting with your existing relationships and data: “You might start by looking at your existing data to see where you have the easiest inroad or the lowest hanging fruit… and slowly, strategically use your time to build out the sources.”
She also highlighted the growing potential of donor-advised funds (DAFs) and the importance of relationship-building: “All of this takes time. Anything on the charitable revenue side, whether it’s grant writing, cultivating and stewarding donors, or corporate sponsorships, is relationship building and takes time.”
Satoshi noted that true diversification is more than balancing grants and earned income. “I’m making sure that we have diversification across various revenue streams with various services in terms of where and who we sell to,” he said. “And the same thing on the fundraising side – do I have diversification in terms of individual donors versus corporate donors versus grants?”
Engaging Your Board in Financial Success
From financial oversight to fundraising support, board members play a pivotal role in an organization’s financial health and both Marta and Satoshi noted that this can be hard for board members. Finding out where board members are most comfortable and creating scripts or specific assignments can be helpful.
“We provide tools in the form of a script and opportunities for role-playing,” said Satoshi. “Just because they’re board members and have power and success doesn’t mean they’re comfortable making that ask.” This is where expert guidance, such as corporate finance advisory, can help strengthen board members’ financial understanding and confidence in fulfilling their roles.
Bonus Tip: Don't Be Afraid to Ask for Help
Expert support doesn’t always come at a high price. Marta shared that Dunleavy & Associates offers “Dunleavy Days” where they offer an hour of free thought partnership. She also recommended looking for capacity-building grants or tapping board members who might fund specific needs like financial consulting.
As Satoshi noted, “During stressful times, board members are often willing to provide additional resources to support a specific cost. So that might be an opportunity to find out if they’re willing to learn more about the risks facing the organization.”
