Building a Resilient Financial Model

Your nonprofit’s financial model is the structure that supports the business entity. Leaders must be prepared to assess its effectiveness and adapt in response to (or anticipation of) change. This article will help you develop resilience.

Nonprofit organizations, like all businesses, need to be financially sustainable in order to thrive. Doing so while serving a community and delivering on a mission requires diligent leadership that is tuned into the organization’s financial model.

Financial models at nonprofit organizations are not static. The composition of revenue, expenses, and investment evolves as the organization matures and responds to external events and strategic internal decisions. Organizations survive and flourish by contracting, changing, growing, and changing again. So financial models are not a “set it and forget it” situation.

Nonprofit leaders constantly find themselves considering proactive and reactive changes to their financial model. This article will help you develop a resilient approach to navigating these changes.