During chaotic times, it makes sense that many nonprofits are only able to focus on their immediate future. A recent survey of nonprofits found that 52% of respondents have the cash on hand to support their organization for only the next three months or less, with 18% having just one month or less.  

If your nonprofit is struggling, creating long-term financial plans may seem like a luxury. However, whether your nonprofit is doing well or starting in a poor position, the first steps to sustainability are the same: assessing your strategy, researching solutions, and restructuring as necessary.  

In this guide, we will provide tips for ensuring long-term sustainability across leadership teams, donor cultivation processes, and other internal operations.  

To sustainably fund its mission, your nonprofit needs to not only encourage engagement from its supporters, but also cultivate their loyalty. Donor loyalty is built on trust, so it’s vital to instill confidence in how you’re managing your organization to make a positive impact, especially when it comes to finance. 

While developing procedures for everyday recordkeeping and regular reporting is important, effective nonprofit financial management also involves planning for the unexpected. This is where risk management plans come in. 

In this guide, we’ll walk through four steps for creating a financial risk management plan that can help see your organization through challenges that may come your way. Some of these actions can also strengthen your day-to-day procedures, helping you demonstrate that you’re using donors’ contributions as promised for a good cause. Let’s dive in!