StrongNonprofits Toolkit
Navigating Uncertainty
Financial uncertainty can arise from loss of funding sources, external factors that affect the ability to deliver programs or services, internal changes that jeopardize operations, and other factors. Scenario planning can help nonprofits explore different actions to take in response. Nonprofits may consider recalibrating their business model, alternative ways of operating, new collaborations, or even winding down. Use these tools and guidance to help assess your business model risks and determine a path forward.
Nonprofit GPS
Nonprofit GPS offers free support to help nonprofits make well-informed decisions and navigate business model risks in times of uncertainty. Types of support available include free webinars, peer convenings and forums, and a public helpline where you can seek advice from financial consultants.
Scenario Planning – Identify Scenarios
Scenario Identification Tool
To help assess the potential impact of future external and internal circumstances, it is important to understand the current environment and your business model as a basis for exploring potential options. This resource is designed to guide you in documenting key assumptions about your business model and identifying the core revenue and expense drivers for up to three different scenarios.
Scenario Planning - Financial Model Template
Effective scenario planning requires that you explore different actions you might take while navigating unexpected circumstances and also the financial impact of those actions. Use this Excel tool to help document key revenue and expense drivers to create financial projections for up to three scenarios.
Understanding the Risk Landscape
Assessing the Risk Landscape
Nonprofit leaders need to assess risks to their business models and consider how they may respond to likely scenarios brought on by the current economic climate. This article discusses a risk assessment model designed to guide you on the approaches you might consider in response to a changing business model.
The Power of Nonprofit Repositioning: An Alternative to Scenario Planning
For some nonprofits, traditional scenario planning may not be the right approach because they are faced with so many economic threats. In this article, Steve Zimmerman, from Spectrum Nonprofit Services, offers an alternative approach. “Scenario positioning” encourages leaders to take stock of their economic context and all the factors they are up against so they can prepare and act as challenges become clearer and more pressing.
Next Steps: Cash Flow
Our recommended best practice is to base a cash flow projection on your program budgets. If you’ve completed the above, you’re ready to work on Cash Flow.
Explore the Toolkit by Topic
Budgeting
Plan, design and build your organization's operating budget to deliver on your mission effectively and sustainably
Navigating Uncertainty
Use these tools and guidance to help assess your business model risks and determine a path forward.
Cash Flow
Forecast and monitor cash flow to ensure you have the money you need when you need it
Operations
Ensure your finance office operations run efficiently and effectively
Data and Analysis
Visualize and understand what your numbers mean
Audit Readiness
Prepare for your audit and maintain audit readiness throughout the year
Governance and Strategy
Employ big-picture thinking to connect your financial resources with mission goals
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