The Numbers Every Nonprofit Should Always Pay Attention To with Brooke Lively

Financial management might not be the most glamorous part of running a nonprofit, but it is absolutely essential. In this episode of the Nonprofit MBA Podcast, our founder Brooke Lively joins host Stephen Halasnik to dive deep into the financial truths every nonprofit leader needs to hear.
 
As a CFO, speaker, and nonprofit profitability strategist, Brooke breaks down the six key numbers that define financial health and why understanding them is mission-critical. With clarity and candor, she explains how proactive financial leadership fuels sustainability, impact, and peace of mind.

Key Takeaways:

  • Cash Flow Is Oxygen: A 13-week rolling forecast gives nonprofit leaders a real-time picture of financial health and the foresight to plan instead of panic.

  • Budget vs. Actuals = Leadership in Action: Comparing planned vs. actual spending monthly keeps your team aligned and empowered to make informed adjustments.

  • Yes, You Have Receivables: From grants and pledges to reimbursements, many nonprofits are owed money. Tracking it properly ensures better cash planning and accountability.

  • Manage What You Owe: Clear oversight of accounts payable builds vendor trust, avoids surprises, and strengthens fiscal responsibility.

  • Know Your Gross Margin (If Applicable): For nonprofits that generate revenue, understanding profitability by program helps with scaling, pricing, and sustainability.

  • Time Is Money: Productivity ratios help leaders evaluate how time, effort, and people are being used, guiding staffing, priorities, and mission alignment.

Financial reports shouldn’t feel like a mystery. They should tell the story of your organization’s strength, challenges, and opportunities. Brooke emphasizes that understanding your numbers isn’t just compliance, it’s a leadership skill that powers your mission.

‘When you understand your numbers, you lead with purpose, plan with foresight, and serve your community with strength.’ — Brooke Lively

Listen on Spotify or Apple Podcasts.

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