Start the Year Strong: 5 Financial Health Checks for Nonprofit Leaders

The end-of-year rush might be over, but for nonprofit leaders, January is a critical time to regroup, reflect, and set the stage for a strong year ahead. Whether you’re closing the books or looking to build better systems, your organization’s financial health deserves focused attention.

 

At Attolero, we believe strong finances are the backbone of sustained impact. To help you start 2026 with clarity and confidence, here are five key areas every nonprofit should review:

 

1. Review Your Budget vs. Actuals

Compare your projected budget with what actually happened. Are there major variances in revenue or expenses? Understanding where you deviated can provide valuable insights for next year’s budgeting and help you respond proactively to funding changes or cost increases.

 

2. Ensure Compliance Is Locked In

Double-check that all required filings (federal, state, local) are complete and accurate. Confirm your 990 is filed, board meeting minutes are recorded, and donor acknowledgments are sent. Compliance isn't just about staying legal—it builds trust with funders and stakeholders.

 

3. Reconcile All Accounts & Donor Transactions

Make sure your bank accounts, credit cards, and donor records are fully reconciled. This ensures your financial statements are accurate and audit-ready. If discrepancies exist, now’s the time to resolve them—before they compound into bigger issues.

 

4. Assess Financial Policies & Internal Controls

Do you have updated financial policies in place? Are they actually being followed? From expense approvals to segregation of duties, strong internal controls protect your organization and build credibility with donors.

 

5. Set Strategic Priorities for the New Fiscal Year

Use your financial review to guide next year’s decisions. Where can you invest for growth? What expenses need to be trimmed? Are there programs that need more funding—or more evaluation? Let the numbers inform your vision.

 

Starting the year with clear financials and sound systems sets the tone for everything that follows—from grant proposals and board meetings to growth planning and impact reporting.

 

Need help getting there?

At Attolero, we specialize in supporting nonprofits with accounting, advisory, and strategic financial services. Whether you need a second set of eyes or a long-term partner, we’re here to simplify your financials and help amplify your impact.

 

👉 Contact us here