10 Critical Questions Nonprofit Boards Should Be Asking Now

Given the current policy landscape, funding uncertainties, and increased demand for services, nonprofit boards must take a proactive approach. Here, find 10 key questions every nonprofit board should be asking right now.

Financial Resilience & Funding Risks

1. How vulnerable are we to federal funding freezes or budget cuts?
   • Do we have a plan to replace lost government funding if needed?
   • Are we building unrestricted reserves to sustain operations during disruptions?
2. What contingency plans do we have in place for a potential government shutdown or economic downturn?
   • Have we modeled scenarios for a 10%, 25%, or 50% loss in funding?
   • What cost-saving measures or revenue strategies can we implement quickly?

Advocacy & Policy Monitoring

3. What federal or state policy changes could impact our organization, and how are we staying informed?
   • Do we have board or staff members actively monitoring legislative developments?
   • Are we engaging with nonprofit coalitions or advocacy groups to protect our funding and mission?
4. How can we use our board’s influence to advocate for policies that support our mission and funding?
   • Are board members actively communicating with policymakers and funders?
   • Are we mobilizing our stakeholders (donors, volunteers, beneficiaries) to advocate for key issues?

Risk Oversight & Governance

5. What are the biggest financial, legal, or reputational risks we face, and how are we mitigating them?
   • Do we have an active risk management plan?
   • Are we reviewing potential compliance risks related to new federal policies?
6. How well are we adapting to new legal restrictions, such as changes to DEI policies or funding conditions?
   • Do we need legal guidance to ensure compliance while upholding our mission?
   • Are we at risk of losing partnerships or funding due to changing regulations?

Organizational Strength & Sustainability

7. Are we effectively communicating our impact to funders, donors, and the community?
   • Do we have strong messaging in place to maintain donor confidence?
   • Are we being transparent about challenges while reinforcing our value and sustainability?
8. How are we supporting and retaining our staff and volunteers during this time of uncertainty?
   • Are we addressing burnout, job security concerns, or capacity issues?
   • Do we need to adjust staffing models or seek additional volunteer support?

Strategic Partnerships & Collaboration

9. Who should we be partnering with to share resources, strengthen advocacy, or expand our reach?
   • Are there opportunities to collaborate with other nonprofits to pool funding or services?
   • Can we strengthen relationships with corporate partners, foundations, or local governments?
10. What strategic decisions do we need to make now to ensure our long-term sustainability?
    • Are we positioned to grow, sustain, or pivot our programs based on funding and demand?
    • Are we aligning our priorities with the realities of the current policy and funding environment?

By asking these 10 questions, nonprofit boards can identify risks, strengthen resilience, and position their organizations for success – even in uncertain times.