Budgeting For Nonprofit Fundraisers

Dear Accountants, External Audits Don’t Have to Be Stressful Let’s be honest, when the message goes out that external auditors are coming, tension rises across the organization. Finance teams get anxious. Management starts to worry. Everyone feels the pressure. But here’s the truth: Auditors aren’t just there to “find faults.” Their mission is to: ✅ Verify that your financial statements present a true and fair view ✅ Ensure compliance with accounting standards (IAS/IFRS) ✅ Assess the strength of internal controls and financial processes With the right mindset and preparation, audits can be smooth, insightful, and even a chance to grow. Here are some practical Tips to Prepare for External Audits (Especially for NGOs) 1.     Start Preparation Early. Don’t wait for the audit notice. Keep documentation and reconciliations up to date year-round. 2.    Ensure Financial Records Are Complete. Record all transactions, update bank reconciliations, and file every receipt and invoice properly. 3.    Review Grant Agreements and Donor Requirements.Understand each donor’s reporting rules and confirm that funds were used as agreed. 4.    Prepare Audit Schedules in Advance. Have schedules for assets, liabilities, income, and expenses ready and ensure they reconcile with your general ledger. 5.    Label and Organize Files Clearly. Whether digital or physical, clear labelling saves time and shows professionalism. 6.    Reconcile Inter-Project and Inter-Fund Balances.For multi-project NGOs, ensure all inter-project transactions are reconciled and supported. 7.    Review Internal Controls. Check that policies like approvals and segregation of duties are being followed and strengthen weak spots early. 8.   Work with Program Teams. Financial accountability isn’t just for finance. Align program reports with financial reports, especially for donor-funded activities. 9.    Hold a Pre-Audit Meeting. Review key audit areas, past findings, and unresolved issues. Preparation builds confidence. 10. Be Transparent and Cooperative. Provide information promptly, answer questions honestly, and avoid being defensive. 11.  Document Learnings and Follow Up. Review findings together, agree on corrective actions, and follow through. 12. Maintain Continuous Communication. Keep lines open between finance, management, and auditors before, during, and after the audit. External audits should not be feared, they are a chance to demonstrate accountability, improve systems, and build donor confidence. With good preparation and teamwork, the process can run smoothly and become a valuable learning experience for everyone involved. How does your organization prepare for external audits? Let’s share best practices and grow together.

A deficit budget isn’t automatically a red flag. But approving one without clear principles is. The year-end is often when organisations review their investments and returns, and plan for the next year. Over the years, I’ve voted “yes” to deficit budgets. I’ve also voted “no” for organisations I care deeply about. Both decisions came from the same belief: Board members are not here to say yes to passion alone. We’re here to say yes to 𝘀𝘁𝗲𝘄𝗮𝗿𝗱𝘀𝗵𝗶𝗽. Because in the social and health sectors, I’ve learned this the hard way: 👉 𝗡𝗼𝘁 𝗮𝗹𝗹 𝗱𝗲𝗳𝗶𝗰𝗶𝘁𝘀 𝗮𝗿𝗲 𝗰𝗿𝗲𝗮𝘁𝗲𝗱 𝗲𝗾𝘂𝗮𝗹. There are deficits I can support when we have:  • A clear runway A time-bound plan: why we’re running a deficit, for how long, and how we return to balance.  • Grounded income assumptions Projections linked to track record, named strategies, and realistic capacity.  • Operational clarity A working sense of costs, priorities, and what gets protected, trimmed, or redesigned if income falls short. And there are deficits I struggle to support when:  • “We’ll raise more” is a hope, not a plan.  • Multiple years of red ink appear without a stop-loss.  • No one can describe the contingency playbook. In those moments, a “no” vote isn’t disloyalty. It can be an act of care. For staff, beneficiaries, and the organisation’s long-term trust. Good people can disagree on budgets. But every director should be able to explain, clearly and calmly, why we said yes. Or why we couldn’t. If you are a board or ExCo member: What principles guide your “yes” or “no” to a deficit budget? #NonprofitGovernance #BoardLeadership #FinancialStewardship #FinancialSustainability #Budgeting #SocialImpact

🚨 The “Big Beautiful Bill” is now law. And while the headlines have already moved on, the fallout for nonprofits, public services, and the people we show up for every day is just beginning. 📉 More need. 💸 Less funding. 🧱 And organizations already stretched thin will be asked to do even more—with less. This bill is not what communities asked for. It’s not what the nonprofit sector needed. But now that it’s here, the question becomes: what do we do next? If you’re leading a nonprofit, this isn’t a moment for panic—but it is a moment for clear-headed action. Because here’s what we’re walking into: ⚠️ Federal grants are now at risk or gone. Programs may shrink or disappear. Some will come with new strings attached—or compliance traps that weren’t there before. 📉 Discretionary budgets are getting cut. Areas like housing, food access, health, and education will feel the squeeze. 📈 The needs around you will rise. And your community will still turn to you for help, whether or not the funding follows. So what does that mean for your next steps? 🔍 1. Understand Your Exposure Figure out which of your current programs or partners rely on federal dollars—directly or indirectly. Don’t assume someone else is already tracking it. Get the facts. 💡 2. Map What’s Still Available What public funds are still flowing? What state, city, or philanthropic sources can you turn to instead? Don’t wait for the next RFP to drop—start building relationships now. 📊 3. Get Clear on Your Core Work Which programs must continue? Which ones deliver the most impact for the resources you have? Which are overextended, and which are truly sustainable? 🗣️ 4. Rethink Your Messaging Now is the time to be clear, not flashy. Tell the story of your work in a way that grounds people in what’s changing—and what you’re doing to meet the moment. 🧭 5. Build the Plan—One Step at a Time You don’t need a 50-page strategy deck. You need a list of what’s at risk, what you’re prioritizing, who needs to be consulted, and what support you’ll need to stay steady. Talk to your board. Talk to your team. Get on the same page, then move forward together. And how we respond—calmly, clearly, collectively—will determine what’s possible. #Nonprofits #Grants #Tax #TaxBill #Government #Communications

I analyzed the communication history for 50 major donors who had lapsed. The pattern was clear—and preventable. The vast majority of these donors only heard from the organization when it was time to ask for another gift. The smart organizations communicate to build a partnership, not just to get a check. The data on major donor stewardship is compelling: 1. Authentic stewardship is about demonstrating the impact of a gift, not just saying thank you for the transaction. 2. For every 1 solicitation, you should be sending at least 3 non-ask communications (insider updates, impact stories, relevant articles). 3, Personalized video messages from leadership or program staff have a 5x higher engagement rate than standard thank-you emails. A small arts organization started sending its top 25 donors an unscripted iPhone video from the director once a quarter, simply sharing what their support made possible. It took 15 minutes. They renewed every single one of those donors—at a higher level—the next year. Don't treat your major donors like ATMs. Treat them like the partners they are. What's the most creative, non-ask touchpoint you've used with a major donor?

The Ministry of Corporate Affairs has just made a significant move in India's CSR landscape — and it’s one that will reshape how non-profits access CSR funds. With the revised Form CSR-1 effective from July 14th, NGOs and implementing agencies must now submit more structured applications backed by enhanced financial and tax disclosures. The aim is clear: to prevent shell or non-compliant entities from misusing CSR funds, and to ensure transparency, tax compliance, and accountability. While this is a progressive step towards cleaning up the ecosystem, it also raises important considerations for both NGOs and corporates: - NGOs will need stronger documentation, compliance systems, and financial discipline. - CSR teams must revisit their due diligence frameworks to align with this more robust reporting and vetting process. - The shift also opens doors for credible, impact-driven NGOs to stand out — especially those aligned with ESG principles and focused on outcomes. This move is not just regulatory — it’s an opportunity to build trust, credibility, and high-impact collaborations in the CSR space. #CSRIndia #NGOCompliance #StrategicCSR #ImpactFunding #CSRRegulations #SocialImpact #NGOStrategy Artha Samarth Consultancy Venugopal S

5 Metrics Every Nonprofit Board Director Should Master As a nonprofit CEO, I’ve witnessed how powerful a well-informed board can be. To lead with purpose, every director must go beyond governance—they must own the numbers that shape mission, trust, and momentum. |• These five metrics aren’t just indicators—they’re leadership in action. { 1. Fundraising Efficiency . Measures how cost-effectively your nonprofit raises money. A gold standard is $0.20 or less per $1 raised. . Why does it matter? Because every dollar saved is a dollar redirected to impact. - I’ve helped boards recalibrate their strategies using this metric, building donor confidence and financial integrity. { 2. Program Expense Ratio . Reflects the proportion of funds invested directly in mission work—aim for 70%+. . This is more than optics; it’s a signal of alignment between your values and your budget. - Boards that internalize this ratio steer the organization with purpose and precision. { 3. Donor Retention Rate . Tracks how many supporters return year after year. . A rate above 60% indicates trust and a compelling mission narrative. - I’ve seen firsthand how boards that prioritize relational stewardship cultivate reliable, long-term revenue. { 4. Cash Reserves . Measure how long your organization could operate without new income. . The ideal is 3–6 months. . This buffer empowers bold decisions and ensures resilience during disruptions. - A strong reserve isn’t excess—it’s strategic foresight. { 5. Volunteer Engagement . Reveals how time, not just money, fuels your mission. . Track hours and impact—10+ hours per volunteer annually signals a thriving ecosystem of shared purpose. - Boards that elevate this metric unlock new capacity and deeper community roots. | These aren’t vanity metrics—they’re a leadership compass. - Fundraising and Program ratios show stewardship. - Retention and Reserves reflect trust and foresight. - Volunteer data reveals your human capital engine. Master these, and you lead with clarity, credibility, and courage. 𝐈𝐧 𝐭𝐡𝐞 𝐧𝐨𝐧𝐩𝐫𝐨𝐟𝐢𝐭 𝐬𝐩𝐚𝐜𝐞, 𝐢𝐧𝐟𝐥𝐮𝐞𝐧𝐜𝐞 —and these five metrics are where transformation begins. Thinkers360 #NonprofitLeadership #InspiringTheBusinessWorld #Leadership #ThoughtLeadership

Most cyber programs have enough tools. They don’t have enough clarity. I’ve spent 26 years watching this play out from almost every seat. Security leader. Consultant. Executive. Advisor. The person brought in when cyber matters, but no one agrees on what’s next. The pattern is the same. The security team talks about tools, controls, and alerts. The business hears cost, complexity, and delays. That’s where cyber programs get stuck. Not because the work is wrong. 🧙🏼♂️ Because the program was never built from the business outward. It was pieced together through best efforts, urgent needs, audits, incidents, and tool purchases. That may create activity. It rarely creates a defensible risk program. Start with C.L.A.R.I.T.Y. It’s how I build effective cybersecurity programs. C: Clarify the Business Mission What does the business do, what must stay operational, and what disruption would hurt most? L: Learn Leadership’s Risk Appetite How does leadership view risk, speed, cost, regulation, and resilience? A: Assess Assets & Business Impact Which systems, data, vendors, and workflows create operational or financial exposure? R: Review Requirements Which regulatory, contractual, insurance, audit, and client obligations define the baseline? I: Identify the Target State Choose the right framework, assess the gaps, and define the maturity level the business needs. T: Translate into Executive Buy-In Turn cyber priorities into language leadership can fund, support, and govern. Y: Your Roadmap Prioritize owners, timelines, investment, metrics, dependencies, and maturity milestones. The order matters: business before technology. Because CEOs and CFOs don’t fund tool lists. They fund resilience, continuity, client trust, risk reduction, and defensible decisions. And CISOs don’t need more noise. They need a way to explain what matters, what it costs, what risk gets reduced, and what the business is choosing to accept. Cybersecurity becomes a board priority when it is framed as a business program. A program with owners, trade-offs, funding logic, and measurable risk decisions. 💾 Save this for your next cyber risk, budget, or board discussion. 📨 If your cyber program is hard to explain, prioritize, or defend internally, DM me. 📲 Follow Wil Klusovsky for executive-level clarity on cyber risk and business decisions.

I still remember the moment I read GiveDirectly's blog post openly admitting they'd been defrauded by members of their team in Uganda. 🤯 Most organizations would bury this information. They highlighted it. They shared exactly what happened, their investigation process, and the changes they made to prevent future errors. Instead of hiding their mistake, they leaned into transparency. Studies consistently show that strategic vulnerability builds more trust than projecting perfection. We're wired to trust people and organizations that show their humanity. We all instinctively know that nothing is perfect. The key is giving your flaws the right context. Pair it with a strength - what will you learn? Where will you go from here? 🔑 Effective transparency looks like: → Sharing real-time impact alongside setbacks → Revealing your finances in digestible ways → Creating spaces for honest conversations with stakeholders → Publishing external reviews (even mixed ones) → Empowering beneficiaries to tell their unfiltered stories In the nonprofit world, where donor skepticism runs high, authenticity is your most powerful asset. So, how is GiveDirectly doing in the decade since revealing this setback? Find out on the fully transparent financials page of their website: https://lnkd.in/emVYqvsR

Before you say “yes” to leading a nonprofit, make sure you’ve seen the numbers. A new nonprofit executive recently stepped into their role: passionate, committed, and ready to lead. But they were not given access to the organization’s financials before saying yes. Just three months in, they’re now facing: → A $225,000 revenue shortfall through 2025 → A growing cash deficit → Drastic scaling back of the organization’s signature program, the one most beloved by the community This isn’t my story. But it could have been. When I stepped into my first executive director role years ago, I didn’t ask for the financials either. I was honored, hopeful, and focused on the mission. I didn’t know what I didn’t know. And I’ve now heard this story too many times to count in my career and four times in the last month alone. New executives arrive ready to implement a vision they cast powerfully in their interviews, only to discover they’ve inherited a financial crisis. Their first task isn’t strategic growth or innovation. It’s plugging budget holes, cutting programs, and rebuilding trust. Too often, boards withhold the hard financial truths because they don’t want to scare off the candidate. But shielding candidates from reality isn’t just unfair to them, it’s bad business for your organization. Sometimes boards don’t know the state of the finances, and that negligence is their responsibility, too. To nonprofit executives: If the financials aren’t offered, ask for them. Refusal or delay in providing clear financial information may be a red flag. Once you get them, do everything you can to verify their accuracy. Board members, this is your moment. 👉 Make providing full, accurate financial documentation a standard part of the hiring process. It’s not just ethical, it’s best practice. Empower candidates with honest financial clarity so they can confidently assess whether they are the right person to steer your organization forward. #NonprofitBoards #ExecutiveSearch #LeadershipTransitions #NonprofitLeadership #BestPractices #FinancialTransparency #GovernanceMatters

At a critical time for scientific research, the new American Heart Association Presidential Advisory emphasizes medical and economic benefits of The National Institutes of Health funded research, offers principles to optimize the NIH’s role as the world’s preeminent medical research entity. https://lnkd.in/gXxN4Q5K As Congress and the administration reassess the funding, staffing and operations of the NIH, the Association offers five principles to optimize its future: 1) The U.S. should continue to prioritize high-quality biomedical research that is innovative and impactful. A coordinated strategy for prioritizing research questions and streamlining funding – involving patients and communities, researchers, clinicians, public health professionals and health and disease-specific organizations – could optimize productivity, effectiveness and impact. 2) The NIH should continue to improve efficiency and transparency in its peer review process. The Association believes the composition of review panels should continue to be multidisciplinary and recommends the NIH enhance peer-review discussions by having funded researchers fulfill a service responsibility to review grants. The NIH also should work to reduce the administrative burden for grant applications. 3) The NIH, in coordination with other federal agencies, should play a larger role in the translation of evidence into practice, including more funding for implementation research. The NIH would advance the translation of science into therapies by strengthening its partnerships with federal health agencies, health care and public health professionals, patients, health systems, payors, industry partners and community-based organizations. 4) The NIH should continue to build and support the biomedical research workforce with funding and training opportunities. The NIH must support researchers with different expertise and backgrounds throughout their careers. In addition, the U.S. should, must implement new, data-driven programs to help retain talented mid-career researchers, who can be tempted to leave academia for more competitive research funding and salaries. 5) Predictable, robust and sustained public investments in biomedical research should be a national priority. To compete with other countries and ensure a timely pipeline for groundbreaking discoveries, translation, clinical evaluation and implementation, the U.S. must make sustained public investment in biomedical research a national priority.