Resilience Roadmap: 9 Steps for Immediate Impact in Nonprofit Organizations

In an era of extreme uncertainty, nonprofit organizations are facing challenges that test their very foundations. From federal funding cuts to economic volatility, the landscape for mission-driven organizations has never been more complex. But resilience isn't about avoiding storms—it's about learning to navigate them.

In a recent webinar, "Nonprofit Resilience: A Roadmap for Success in Uncertain Times," experts from Sutro Li and Withum shared practical advice on how to prepare and stay strong. Drawing from insights across nonprofit accounting, finance, legal, and organizational management, we've developed a Resilience Roadmap to help nonprofits plan for this new environment.

Whether you're facing funding uncertainties, operational constraints, or strategic pivots, this roadmap can be your guide.

9 Steps for Nonprofit Resilience

1. Mission Critical: Focus on Impact

In times of uncertainty, get laser-focused on your core mission. Let's identify your non-negotiables and create a plan to keep those efforts moving forward:

  • Identify the 2-3 programs that serve 80% of your beneficiaries

  • Create a bare minimum staffing plan to maintain these core services

  • List 3-5 key performance indicators to track impact during the crisis

2. Cashflow Focus

Nonprofit cash flow management is critical to navigate through tough times. Start by getting a clear picture of where you are and what you would cut if you were forced into crisis mode:

  • Identify $100K - $500K in budget cuts that could be made within 48 hours if needed

  • List top 20 donors who could provide emergency funding

  • Evaluate suspending 1-2 non-core programs to redirect funds

  • Evaluate staff furloughs vs. layoffs

  • Access Community Development Financial Institutions (CDFI) and Lines of Credit

3. Reimagine Your Revenue

It's time to think outside the box and diversify your funding streams. Let's explore new avenues and optimize existing ones:

  • Assess the diversity of your funding sources and the balance between restricted and unrestricted funding

  • Expand individual giving efforts: create a 60-day plan to launch a major donor emergency appeal campaign

  • Explore affiliation with a Community Foundation

  • Identify 2-5 grants that could potentially be repurposed for general operating support

  • Develop or expand earned revenue (fee for service) streams

4. Hidden Treasures: Unlock Your Assets

You might be sitting on untapped potential. Let's discover and capitalize on your hidden assets:

  • Inventory all assets (physical and intellectual property) and develop a plan to liquidate non-essential assets

  • Explore options for leveraging assets (e.g., renting out space)

  • Evaluate your investment portfolio to ensure sufficient liquidity

  • Revisit your reserve fund policy

5. All Hands On-Deck

In crisis mode, everyone needs to step up and take action. Let's mobilize your team:

  • Create 90-day emergency action plans for the CEO, CFO, and Development Director

  • Identify 2-3 board members who can step into temporary operational roles

  • Draft a lean org chart, reducing management layers by 25%

6. Clear Comms: Your Crisis Shield

In turbulent times, communication can make or break you. Let's build a communication plan that keeps everyone informed and aligned.

  • Draft email templates for staff, board, major donors, and key partners

  • Schedule weekly all-hands meetings and bi-weekly board update calls

  • Stay on message, be transparent, emphasize your mission. Nonprofits are not bureaucracy. They are the frontline of real, human impact.

  • Email system readiness: Verify setup, content, and staff know-how

7. Merge Ahead: Navigating New Possibilities

Sometimes, joining forces can make you stronger. Let's explore potential collaborations:

  • Identify potential partner organizations with similar missions

  • Outline steps for initiating merger discussions

  • Develop criteria for evaluating potential mergers or collaborations

8. Legal Matters: Protecting Your Mission

Don't let legal issues blindside you. Let's ensure you're protected:

  • Review contracts and obligations that might be affected

  • Understand legal implications of significant changes (e.g., layoffs, program cuts)

  • Retain legal counsel when needed

9. Buttoned Up: Expert-Guided Internal Controls

Solid internal controls are your financial foundation. Let's make sure yours are rock-solid:

  • Trust your advisors

  • Be open to tough love

  • Embrace your management letter

  • Internal controls should happen monthly, not annually

  • Don't let an error or inconsistency put all of your finances in doubt

Nonprofit resilience isn't about predicting the future—it's about preparation. Focus on these key elements: create a solid plan, make tough decisions early, and communicate effectively. Remember to lean on your financial, legal, and strategic advisors throughout this process. Most importantly, take action—resilience is built through consistent effort and implementation.

Burton Li, CEO