5 Things Your CFO Should Be Doing Right Now

There’s no sugarcoating it—uncertainty is in the air. Organizations across the sector are watching major funders shift priorities, reacting to cuts in federal grants, seeing donation patterns change, and feeling the pressure of a tightening economy. For some, it’s already hitting home with cuts, hiring freezes, or strategic pivots.

In moments like this, strong financial leadership isn’t just important—it’s absolutely critical.

Your CFO (or whoever is wearing the CFO hat) is your strategic partner, and this is the time to let them SHINE. They will help you see around corners and stay ready for whatever comes next. Here are five things they should be doing right now to protect your organization, steady the ship, and position you for the future.

1. Running Financial Scenario Planning (Best, Likely, Worst)

Now is not the time to rely on a single budget. Your CFO should be modeling out multiple financial scenarios—what happens if your revenue drops 10%, 20%, even 30%? What if a major grant doesn’t renew? What if donor retention dips?

Scenario planning helps you identify financial triggers and make proactive decisions before you're in crisis mode. You don’t want to be figuring out layoffs or program cuts after the money’s dried up.

What to do:

• Build and review best, likely, and worst-case financial scenarios.
• Create clear trigger/decision points for each (“If funding drops below X, we do Y.”)
• Involve your leadership team so everyone understands the potential impact.

2. Scrutinizing Cash Flow and Building Liquidity

Revenue projections are nice, but cash flow is reality. How much cash do you actually have on hand? How fast is it going out the door? And how long can you sustain operations if something changes?

In good times, organizations focus on P&L’s. But right now, the Cash Flow Statement is your best friend.

A good CFO is monitoring this closely, building short-term cash flow forecasts, and ensuring you’re prepared if funding slows or expenses rise.

What to do:

• Track monthly and quarterly cash flow with more granularity than usual.
• Look for ways to delay non-essential spending or renegotiate payment terms.
• Prioritize building or preserving operating reserves (aim for at least 3 months).

3. Diversifying Revenue Streams

If more than 30% of your budget is coming from a single funder, that’s a vulnerability. Even if you feel confident in their commitment, smart financial leadership means looking ahead and reducing risk through revenue diversification.

With many grants under scrutiny, now is a good time to look at all different sources of unrestricted funding— monthly donors, corporate sponsors, and earned income. Find your past donor lists and go hard after individual donations. Are there earned income streams you can focus on, or fee-for service?

What to do:

• Identify concentration risks in your current funding mix.
• Partner with development to brainstorm new revenue streams or deepen existing ones.
• Explore mission-aligned earned income or fee-for-service opportunities.

4. Strengthening Financial Reporting for Leadership Decision-Making

Too often, financial reports are built for compliance, not strategy. They’re dense, delayed, and hard to interpret. That doesn’t work in a dynamic environment.

Focus on producing clean, understandable reports and dashboards that help you, your board, and your leadership team make informed, timely decisions.

What to do:

• Ensure your reports highlight key metrics: burn rate, program profitability, funding gaps, etc.
• Use visuals and summaries—not just spreadsheets.
• Share regular financial updates with your leadership and board (monthly, not quarterly).

5. Reviewing (and Stress-Testing) Funding Commitments

This is the time to double-check your assumptions. Are multi-year grants truly locked in? Have major donor pledges been reconfirmed? Are there risks around government contracts or reimbursement-based grants?

This is a good time to pressure-test your pipeline and identify where delays or shortfalls might occur.

What to do:

• Reconfirm all major funding commitments.
• Model the impact of delays or reductions.
• Talk to funders about flexibility—many are open to revisiting timelines or restrictions right now.

Final Thought: Your CFO Is Your Mission Protector – Use Them!

Nonprofits exist to serve, but they survive by being financially sound. In times of uncertainty, your CFO is one of the most important protectors of your mission.

If your finance lead isn’t already taking these five steps, now is the time to start the conversation. You don’t need to panic—but you do need to plan.

The organizations that weather uncertainty best aren’t the ones with the biggest budgets. They’re the ones with the clearest vision, the sharpest financial tools, and the courage to lead proactively.

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