As we approach year-end, the end of a particularly brutal 12-months, I’m reminded of the ever-evolving cycles that all organizations face.
Just like for-profits, nonprofits live in cyclical environments. And like for-profit companies, nonprofit’s fortunes are often pegged to business growth and strong stock markets, which put cash in their donors’ pockets.
Stock markets were strong in 2025, which could encourage donor generosity, but this market surge has taken place amidst the uncertainty surrounding a possible AI-induced financial bubble.
And, meanwhile, government spending cutbacks have brutalized many nonprofit organizations.
I’ve always stressed that cash is king, and that you must raise it when you can, not waiting until you need it. But, what if, at the end of 2025, despite your best efforts, your organization is facing a significant financial shortfall?
I can attest, from experience, that this is but another cycle, a cycle from which we will emerge, whether in 2026, or some time soon after. The pain that we face today will pass.
In the meantime it’s important to think deeply about your mission and the capabilities of your nonprofit. You need to revisit your vision for the organization and to paint a picture for your stakeholders of a future that you can all embrace.
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Can you use this time to reflect on your successes and your challenges during 2025?
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Thinking of 2025, can you begin to paint a picture for your organization as you move toward 2026?