Answer 10 questions to assess your nonprofit's financial health.
1. Do you have at least 3 months of operating reserves?
2. Is your annual revenue diversified across 3+ sources?
3. Are your administrative costs below 25% of total expenses?
4. Do you have a board-approved annual budget?
5. Are your financial statements audited or reviewed annually?
6. Do you track program-level costs separately?
7. Is your cash flow positive for the last 12 months?
8. Do you have a written investment policy?
9. Are all grant funds tracked with restricted fund accounting?
10. Do you conduct an annual financial risk assessment?