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Financial Pressure Points: How to Respond with Financial Clarity in the Instability of 2026

Financial Pressure Points: How to Respond with Financial Clarity in the Instability of 2026

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Nonprofits are absorbing any number of financial blows this year. From the retreat of the federal government to shifts in philanthropic funding to the uncertainty of the larger economy. It is more critical than ever that nonprofit financial staff and systems are telling an accurate and timely financial story to leadership, and further that leadership is using that information to assess risk and make strategic financial choices. Curt Klotz and Shétu Rose, co-founders of Diverge Finance, review the “pressure points” every finance team needs to be addressing in this climate.

This session covers the strategic and tactical aspects of these pressure points:

Cash Reserves
Restricted Revenue
Accounting Systems Design
Business Model Reality Check
Building a Strong Finance Team

Event Date: June 11th, 2026

Resources:

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How do you weight the revenue streams in your cash reserve analysis?

Revenue streams are weighted based on their relative importance to the organization’s overall budget and cash flow stability. The weighting methodology is flexible and can be customized to fit the specific circumstances of the organization; there is no single prescribed formula.

In the example we presented, we considered factors such as:

The regularity and predictability of the revenue stream
The size of the revenue stream relative to the total budget
The operational impact if that revenue were delayed or unavailable

Revenue sources that represent a larger share of the budget typically receive a higher weighting because disruptions in those funds could significantly affect the organization’s ability to carry out planned operations and meet financial obligations throughout the year. The goal of the weighting process is to reflect both the financial significance and reliability of each revenue stream when assessing cash reserve needs.

Tips for internal controls with a one-person finance team.

For organizations with a one-person finance team, strong internal controls can still be achieved by involving other members of the organization in key approval and payment processes. In small organizations this might even mean including a board member. The goal is to separate responsibilities where possible, even if accounting functions are centralized with one individual.

Example: Bill Payment Process

Finance Staff

Receive and process the invoice.
Verify supporting documentation.
Code the expense to the appropriate account and prepare it for approval.

Program Manager, Budget Holder, or Department Head

 Review the invoice.
Confirm that the expense is appropriate and correctly coded.
Verify that the expense aligns with the approved budget.
Approve the invoice for payment.

Executive Director or Other Authorized Executive

Review approved payments as needed.
Execute the payment, either electronically or by signing checks.
Maintain authority over access to bank accounts and payment platforms.

Using this approach helps ensure that no single individual has complete control over initiating, approving, and disbursing funds.

Organizations can further strengthen controls by using platforms such as Bill.com, Ramp, Intuit, or similar accounts payable systems. These tools allow organizations to establish approval workflows and user hierarchies, ensuring that:

Expenses are reviewed by appropriate budget owners.
Payment approvals are routed to authorized personnel.
Individuals with banking access are separate from those processing transactions when possible.
Electronic audit trails are maintained for all approvals and payments.

Even in a small organization, thoughtfully separating review, approval, and payment responsibilities can significantly reduce risk while maintaining efficient financial operations.

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