The COVID-19 pandemic reshaped the nonprofit landscape, exposing vulnerabilities in financial planning while offering valuable lessons in adaptability and resilience. As CFO of Make-A-Wish New Jersey, I witnessed firsthand how strategic planning and financial agility can help navigate uncertainty. Here are five lessons learned from the pandemic that still work:

1. Flexibility in Budgeting is Essential

The pandemic demonstrated the need for dynamic budgeting that prepares nonprofits for uncertainty. Developing best-case, worst-case and most-likely scenarios provides organizations with a roadmap:

• Best-case: Plan to reinvest surplus funds into strategic initiatives like expanding programs or improving infrastructure.
• Worst-case: Identify cost-cutting measures, such as deferring non-essential expenses or reallocating resources.
• Most-likely: Use this as the foundation for routine operations, ensuring alignment with expected revenue and expenses.

This approach reduces reactive decision-making and ensures operational stability, even in a crisis. CPAs can support nonprofits by implementing rolling forecasts and scenario analyses that adapt to evolving conditions, fostering a culture of proactive planning.

2. Diversified Revenue Streams Provide Stability

The pandemic revealed the risks of reliance on a single revenue source. Diversifying income — through grants, individual donations, corporate sponsorships and digital fundraising — helps mitigate vulnerabilities.

CPAs play a crucial role in assessing revenue composition and identifying over-reliance on any single stream. By guiding nonprofits toward more balanced funding strategies, CPAs can ensure financial stability while aligning with organizational capacity and mission. Moreover, diversification strengthens donor engagement by appealing to various funding preferences.

3. Technology Is a Game-Changer

Understanding an organization’s technological capabilities is key to sustaining operations in uncertain times. During the pandemic, technology enabled nonprofits to shift to virtual events, implement online donor systems and deliver programs digitally — all while maintaining donor connections and continuity of services.

Investing in technology doesn’t just improve efficiency; it also positions nonprofits to remain competitive and relevant. CPAs can guide nonprofits in evaluating existing tools, securing funding for upgrades and assessing return on investment to ensure technology is used strategically to achieve mission objectives. A forward-looking technology plan is now essential for resilience in an increasingly digital world.

4. Reserves and Transparency Are Cornerstones of Resilience

Robust reserves and unrestricted investments proved invaluable during the pandemic. Endowments generate steady income to support essential programs, while unrestricted investments provide liquidity to address urgent needs. These financial buffers safeguard an organization’s mission and allow them to adapt to disruptions without compromising long-term goals.

Equally important is transparency with donors. Regular updates on financial health and program outcomes build trust and strengthen relationships. CPAs can assist nonprofits in crafting reserve policies, modeling financial scenarios and developing reporting frameworks that foster donor confidence.

5. CPAs Play a Role in Building Resilience

Nonprofits increasingly look to CPAs for strategic insights beyond compliance. CPAs bring a unique perspective that helps organizations optimize budgets, diversify revenue, leverage technology and strengthen reserves. By working closely with nonprofit leadership, CPAs can identify opportunities for growth and build financial strategies that ensure long-term sustainability.

In a rapidly changing environment, CPAs also play a pivotal role in helping nonprofits interpret financial data, evaluate risks and align resources with mission-critical priorities. Their expertise is instrumental in creating agile, resilient organizations prepared to weather uncertainty and seize opportunities.

The COVID-19 pandemic was a wake-up call for the nonprofit sector, emphasizing the need for flexibility, diversification, technology, reserves and transparency. These elements are not merely responses to past challenges but foundational strategies for building resilience and delivering long-term impact. As trusted advisors, CPAs are essential partners in this journey, helping nonprofits strengthen their financial health and navigate future uncertainties with confidence. By applying these lessons, organizations can ensure their ability to fulfill their missions and remain a vital force for good, no matter the challenges ahead.