“The financial sustainability of a nonprofit organization must be a priority of its leadership team and board. It should also be incorporated into both its ongoing management decisions as well as its longer-term strategic planning. Yet, nonprofits often only focus on financial sustainability reactively – usually after a decline in revenue reveals an unsustainable business model.
Organizations that rely on grants or on a small number of major donors can be particularly vulnerable because of the inherent unpredictability and variability of such revenue sources.”
Budget Planning: 5 Reasons Why Nonprofits Fail Financially & How To Avoid Them
National Executive Service Corps
14 May 2018