A Joint Letter from CNPE CEO, Das Rooprai, and HR Affiliates President, Jennifer Wheatley

Dear Friends, With continued changes in government funding, the financial outlook for nonprofits feels more stressful than ever. But there are steps we can take right now to help insulate our organizations from the severity of what may come. In the spirit of "preparing for a rainy day" now is the time to take practical steps to identify and manage financial vulnerabilities in our organizations. From business and banking perspectives, here are a few items and actions to consider: Information is power. Now is a good time to assess your business model for more efficiency, resilience, and adaptability. Scrutinize your budget – trim non-essential costs and consider delaying investment in discretionary items. Cash is king - know your cash position and how long can you operate if funding stops. Manage payables carefully and take advantage of the full time your organization has to pay expenses. Talk with your banker – discuss ways to improve cash flow and ask about a potential line of credit for that rainy day. Have your bank provide a wellness checkup – how do they view your organization’s financial health? In general, don't be afraid to ask for help in times of financial strain. Your accounting firm, associations, and peers are helpful resources too - you are not alone. Plan for possible cuts. Nobody wants to think about this, but the reality of the moment calls for it. Staffing is typically the largest category of expense, so the hard question to wrestle with is how would we trim staffing expenses if needed without impacting our mission. Running a non-profit organization is stressful work. Throw in the uncertainty of our current environment and the task becomes even harder. Call upon trusted partners to help you see through the haze of uncertainty and take actions now that will extend your financial runway. There are additional considerations related to grants, contracts, funders, and social capital. The following resources can help you strategize and manage the financial needs of your organization during these times of uncertainty: 12 Urgent Financial Action Steps for Nonprofits: A 2025 Checklist How do Nonprofits Manage Cash Deficits? The Essentials of Cash Management for Nonprofits Small Business Resource Center | Pinnacle Financial Partners CNPE is partnering with Pinnacle Bank for our next Power Hour that will focus on bringing nonprofits more helpful advice about banking solutions and managing financial uncertainty. The event will provide opportunities for Q&A and networking with peers to help find answers you may be looking for. The date and time in March for Power Hour will be announced soon. We are available to connect with you to help where we can. With gratitude and admiration for everything you do to serve our community,