2026 Check Up Jan 2026 | Bristol Organization

By: Suzann Smith

“Even if you are on the right track, you'll get run over if you just sit there.”

- WILL ROGERS

As we approach the end of the year, every leader I know is thinking about financial health. With today’s uncertain economic environment, rising costs and inflation, change makers are feeling the strain. Financial stability is no longer a “nice to have.” It is your organization’s vital sign.

To explore what keeps nonprofits financially healthy, I spoke with one of our long-term partners, John Gillespie of Beyond the Bottom Line. Collectively, John and I have worked with 800 organizations in the social sector. No matter the size or mission, we see the same pattern: everyone expects nonprofits to be sustainable, but very few define what that means or equip CEOs and boards with the right tools to assess their financial health.

John and I share a common belief — it should be easy for nonprofits to do their jobs well. That’s why we developed a practical tool for leaders (CFOs, CEOs) and board members (board chairs, finance and governance chairs): the Financial Sustainability Check-Up.

Just like an annual medical exam, this tool helps you identify strengths, pinpoint risks and chart a path toward long-term vitality. If you want a quick way to get started, we’ve included a downloadable 2026 Nonprofit Financial Sustainability Check-Up Checklist. It covers the essential elements – budget alignment, cash position, reserves, controls, board oversight and strategic risks. Many teams use it in leadership and board meetings as a fast diagnostic tool to spot strengths, uncover red flags and align on next steps. The check-up also prompts leaders to review cash flow, internal controls and strategic risks – areas that often cause trouble long before they show up in audited financials.

According to the 2024 Nonprofit Finance Fund survey, nearly half of nonprofits reported having less than three months of cash reserves. When financial systems are stretched thin, even small missteps can have real consequences, which is why a regular check-up matters, and today is the best time to start.

The Four Systems of Financial Sustainability

Just like the human body, nonprofits have key systems that need to be tested and occasionally recalibrated to stay healthy:

1. Budgeting & Planning: Your Organization's Nervous System

Your strategic plan sets direction, but your budget transmits the signals that tell the organization how to move. A detailed, bottom-up budget forces clarity: what you plan to do, the resources required and the tradeoffs ahead. Developing annual financial projections is the equivalent of checking your reflexes. You learn how your organization responds (or could respond) under pressure and where you are overextended. A healthy budgeting system gives you steady coordination and allows leaders to flex as needs arise.

2. Financial Operations: Your Daily Pulse

Timely and accurate financial management keeps your finger on the pulse of your organization. Confidence in your numbers empowers you to make smart decisions about issues like:

Can we afford to hire a new staff member?
Should we invest more in marketing?
What’s our real runway if revenue dips?

Strong financial systems provide a steady heartbeat, so you can make decisions based on data and not wishful thinking.

3. Reporting & Monitoring: Your Lab Results

You can’t manage what you don’t measure, and you cannot treat what you don't test. Consider monthly income statements, actual vs. budget comparisons and dashboard reports as your lab work — they give you the context you need to make mid-course corrections. Regular review — at both the staff and board levels — reveals trends and abnormalities, and confirms whether your interventions are working. It is preventative care for your financial systems.

4. Board Governance: Your Medical Team

A healthy board is not a bystander. It is part of the care team. Your treasurer, finance committee and board leadership should function like a trusted clinician who understands the organization’s business model. Together with staff leadership, the board should monitor vital signs and collaborate on treatment plans. Every board member – whether or not they serve on the finance committee – should have a strong understanding of the organization’s finances. In fact, financial overviews should be part of board onboarding, and financial training should be part of your board's professional development. When the board and staff work together as partners in financial stewardship, the whole organization stands taller and stronger. Effective partnership with the board relies on open communication, a shared understanding of key metrics and proactive risk management.

For example, one strategic planning client used the check-up to adjust its budgeting process by adding a mid-year check-in (in July) to prevent surprises at year-end (in December). The shift improved decision-making and allowed the board and staff to better enjoy their holiday – knowing they had a solid game-plan for hitting year-end revenue goals.

Why This Matters

As we often remind clients, “Without money, there is no mission.” Financial health should not be a side task or relegated to a select few financial experts on the board. It is the lifeblood of organizational impact. That’s why the financial health of your organization must be one of the most carefully monitored and regularly adjusted aspects of your work. When your systems are strong, you can confidently expand services, support your team and respond to community need when warranted.

Our hope is that the check-up sparks meaningful conversations about how to build stronger, more resilient organizations — ones capable of delivering sustainable social impact for years to come. Take a moment to send this newsletter to other stakeholders who could benefit from it – fellow board members, staff and changemakers. And don’t forget to schedule a follow-up meeting to walk through it with your board in 2026. Your future self will thank you!

If you have questions about the check-up or want help applying the Nonprofit Financial Sustainability Check-Up Checklist, John is available for limited pro bono assistance, and I would love to hear from you.