Understanding what it really means for a nonprofit to be financially successful—and no, it’s not just about the size of your bank account. Beth Larsen, VP of Client Accounting and Advisory Services at JMT Consulting, explains.

Financial success, Beth explains, is fundamentally about “whether or not you have the resources to fulfill your mission effectively.” It’s a mindset shift from passive accounting to active financial management, where success is defined by the ability to match your assets to your mission-driven activities.

Beth digs into how nonprofits can and should assess their financial health by tracking three core metrics: monthly operating results, available unrestricted cash, and current ratio. She emphasizes that these metrics aren’t just nice-to-have—they’re essential to making real-time strategic decisions and maintaining stability in uncertain economic times.

“Most nonprofits are dealing with demand that far exceeds available resources,” she shares. “That means decision-making must be rooted in data and aligned with mission, not just money.”

The conversation moves from theory to practice, with Beth advocating for a solid financial foundation built on clean data, clear processes, and internal discipline. She outlines actionable best practices like having written financial procedures, separation of duties, automated systems, and integrated budget planning that includes development and operations.

Host Julia Patrick and Beth also reflect on their past experiences during the 2008 recession—where both faced impossible decisions around shelter programs and fundraising gaps—and draw relevant lessons for today's leaders.

Whether your nonprofit is flying blind with checkbook accounting or wrestling with boardroom fear around financial topics, Beth’s calm, strategic approach lights a clear path forward. Her message is both urgent and empowering: “You can’t afford not to do this work.”

Timestamps:

00:00:00 – Welcome and Introduction to Beth Larsen 

00:03:44 – What Financial Success Really Means for Nonprofits 

00:05:19 – Navigating Resources vs. Demand in Tough Times 

00:08:39 – Best Practices: Build a Financial Foundation 

00:10:42 – Budget Strategy and Data Categorization 

00:13:33 – How Strong Systems Reduce Fear and Confusion 

00:17:10 – Balancing Mission with Financial Realities 

00:20:38 – The Three Key Metrics You Must Track 

00:24:26 – Moving From Checkbook Management to Smart Strategy 

00:26:10 – Improving Communication Around Financials 

00:28:52 – Finance as a Journey, Not a Checklist 

00:30:12 – Innovate 2025 Conference Preview 

#NonprofitFinance #MissionDrivenData #StrategicStewardship

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