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Q1 Financial Review: Assessing Progress and Adjusting Strategies for 2025
- Number Cruncher
- Mar 31
- 2 min read
The first quarter of 2025 is wrapping up—now is the time to see if your nonprofit’s financial trajectory aligns with the goals you set at the start of the year. By reviewing key metrics and identifying where you’re hitting or missing targets, you’ll refine your approach for the months ahead.
Gather Core KPIs Focus on metrics that reveal the health of your nonprofit in real terms. Operating Reserve Months show how well you can handle unexpected expenses, while Revenue Growth indicates donor traction. Check if your Accounts Receivable Days are creeping up—it may signal a collection slowdown that needs addressing.
Compare Budget vs. Actuals Look at how your projected revenue and expenses compare to what actually occurred. If revenue was lower than expected, find out why. Maybe a major donor delayed a gift or a grant distribution took longer than usual. If expenses went over budget, pinpoint the categories causing overspending. Knowing the “why” helps shape the “what next.”
Involve Your Team Don’t conduct your Q1 review in isolation. Bring department heads or key program staff into the conversation. Their firsthand insights might explain anomalies or confirm that certain strategies are working. Shared ownership of financial data promotes a collaborative approach to adjustments and solutions.
Refine Tactics and Timelines Armed with fresh data, decide what changes make sense for Q2. If fundraising fell short, ramp up donor engagement or events. If a new program launch boosted expenses, see if you need to stagger its rollout. Adjusting timelines and tactics now can prevent minor shortfalls from turning into significant setbacks later.
Communicate Next Steps Share a succinct overview of your Q1 findings with stakeholders, including your board and major donors. Emphasize both achievements and challenges, then outline how you plan to address any issues. This transparency fosters trust and underscores your commitment to responsible stewardship.
A thorough Q1 financial review keeps your nonprofit’s strategy aligned with reality, ensuring you stay on the path to meaningful impact. If you’d like to discuss ways to interpret your data or brainstorm practical adjustments for Q2, we’re here to offer fresh perspectives.
