“If you want to stop losing money, stop performing.” This was my tongue-in-cheek advice to the artistic director of a nonprofit choral organization. Each concert cost them more than $10,000 over and above the ticket sales they took in.

The same is true for almost every nonprofit. So, stop doing what you exist for and your financial problems will be solved? Obviously, that’s not a great option.

As a CPA advising nonprofit clients, you’ll encounter this fundamental challenge: balancing mission fulfillment with financial sustainability. While “just stop” might technically solve their financial equation, it completely misses the point of why these organizations exist. Instead, here are some strategies to share with your clients for managing their cash flow while continuing to serve their mission.

1. Help Them Master Revenue Planning

Guide your clients to understand their revenue streams. Start by helping them identify their minimum guaranteed receipts — these are the funds they can count on with near certainty. This becomes their baseline for budgeting decisions.

Think of it as building a house: you wouldn’t construct the roof before ensuring the foundation can support it. Similarly, advise your clients not to commit to programming costs until they’ve secured their baseline funding.

2. Recommend Subscription-Based Donations

Show your clients how one-time donations are like catching raindrops in a bucket — unpredictable and inconsistent. Help them understand how subscription-based giving programs transform those sporadic raindrops into a steady stream. Research shows that donors typically give more through recurring donations, providing more-predictable revenue.

Help them develop different “membership” levels with appropriate perks, making it easy for supporters to see the ongoing value of their contribution.

3. Guide Them in Building Strategic Cash Reserves

Teach your clients that smart cash management isn’t about keeping all funds in a checking account. Instead, advise them to:

• Maintain only enough operating cash for one to two weeks of expenses.
• Move excess funds into reserve accounts that earn interest.
• During profitable periods, build an emergency fund.

Think of cash reserves like a squirrel storing nuts for winter — you need enough readily available for immediate needs, but the rest should be safely stored away for leaner times.

4. Implement a 52-Week Rolling Cash Flow Model

Your nonprofit clients often face dramatic seasonal swings in both income and expenses. Show them how a 52-week rolling cash flow model helps:

• Visualize their entire year’s financial patterns.
• Identify potential cash crunches before they occur.
• Plan strategies to smooth out the peaks and valleys.
• Make proactive rather than reactive financial decisions.

5. Optimize Workforce Strategy

Since staff costs often represent the largest expense for nonprofits, help your clients develop a tiered approach to staffing:

• Maintain minimal paid staff for critical roles.
• Build a robust volunteer program for support functions.
• Offer meaningful non-monetary rewards (e.g., exclusive access, recognition).
• Create clear paths for volunteer development.

Remember: volunteers aren’t free labor — they’re mission-driven supporters who deserve investment and appreciation.

6. Provide Additional Cash Flow Best Practices

Coach your clients on these fundamentals:

• Negotiate favorable payment terms with vendors.
• Accelerate receivables collection.
• Time major expenses to align with revenue peaks.
• Maintain strong banking relationships.
• Regularly review pricing structures.
• Explore grant opportunities strategically.

The Bottom Line

By implementing these strategies, you can help your nonprofit clients build financially sustainable organizations while fulfilling their missions. The key is to help your clients understand that financial sustainability isn’t about having the most money, it’s about having the right amount at the right time to do what matters most. With your guidance, your nonprofit clients can continue making a difference while maintaining fiscal health.

Remember: Their mission is why they exist, but strong financial management is what allows them to continue existing.