Happy New Year!
As we begin 2026, it is crucial for the finance department of your nonprofit organization to set and pursue clear operational goals. An uncertain economic environment is impacting nonprofits’ ability to run their programs, deliver services and successfully fulfill their missions. With higher operating costs, changes in funding sources and challenges with workforce recruitment and retention, now more than ever, it is critical for nonprofits to strengthen their financial operations.
The following six priorities will help strengthen financial management, fulfill mission and support the long-term sustainability of your organization.
6 Key Priorities For Your Nonprofit
1.Timely Distribution of Monthly Financial Statements
Ensure monthly financial statements are distributed by the 15th of the following month. Implementing and enforcing a formal month-end financial close process will result in accurate and reliable financial statements.
2.Review and Update Accounting Policies and Procedures
Regularly review, update and enforce your Accounting Policies and Procedures Manual. Updates can include significant organizational changes such as new programs or staff roles, implementation of new technology such as AI and relevant changes to laws and regulations.
3.Consider an Independent Operational Review and Assessment
An external objective party conducts an independent operational review of your finance department. This process helps identify and evaluate weaknesses in financial operations and ultimately provides actionable recommendations for improvement.
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Uncertain Times Demand Effective Financial Operations
4.Foster Organization-Wide Collaboration
Breaking the silos and promoting collaboration between the finance team and leadership, program staff, and departments throughout the organization is essential for achieving effective financial management.
5.Invest In Finance Staff Training and Development
Provide training and development opportunities for finance staff to enhance their understanding of their responsibilities. This investment allows the organization to teach staff new skills relevant to their job functions and supports the retention of valued employees.
6.Review and Update User Access Rights to Financial Systems
Regularly review and update user access rights to automated financial systems. Assigning appropriate access and monitoring it frequently minimizes the risk of improper or unauthorized activity within these systems.
Does Your Nonprofit Need Help Achieving These Goals?
Roberta Katz Consulting is dedicated to assisting nonprofit organizations in improving the efficiency and effectiveness of their finance departments. Roberta is uniquely qualified to help nonprofits by using the experience she gained in successfully building strong finance departments at the nonprofits at which she worked. Schedule a complimentary consultation to discuss how Roberta can assist your organization.
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