For nonprofits operating on a calendar-year fiscal cycle, mid-year is the perfect moment to step back, assess your progress, and realign your goals—setting your team up for a strong and successful year-end. A mid-year financial check-in ensures your organization stays on track with its mission and funding goals.
Here are key areas to review:
- Budget vs. Actuals: Are your expenses and revenue aligned with your budget? Now is the time to identify any variances, determine the factors and adjust as needed. Significant variances might indicate shifting program priorities, unexpected costs, or opportunities for reforecasting. Set revised targets and goals for the rest of the year.
- Fundraising & Revenue Goals: Take a moment to evaluate your year-to-date fundraising performance against your goals. Are you on track to meet your revenue targets? If there are shortfalls, now is the time to pivot—whether by launching a mid-year campaign, strengthening donor engagement efforts, or exploring new funding opportunities. Mid-year is also a good opportunity to assess the effectiveness of your current strategies and make data-informed adjustments that position your organization for a strong year-end push.
- Cash Flow & Reserves: Do you have enough cash flow to sustain operations through year-end? Consider strategies to strengthen your reserves. Check out our article on “Mastering Cash Flow: A Nonprofit’s Guide to Financial Stability” for some tips.
- Grant & Donor Reporting: Ensure grant funds are properly tracked, allocated, and spent in accordance with donor or funder restrictions. Accurate and timely reporting not only helps maintain compliance with grant agreements but also strengthens relationships with funders by demonstrating accountability.
- Compliance & IRS Filings: Double-check deadlines for Form 990 and other regulatory requirements to avoid penalties. Even if your organization has filed for an extension, proactively gathering your PBC list now can streamline the process and prevent last-minute stress.
- Board & Finance Committee Engagement: Ensure your board and finance committee remain informed and actively engaged in your organization’s financial health. Mid-year is an ideal time to present clear, meaningful financial reports that go beyond numbers—highlight trends, challenges, and opportunities. Use this checkpoint to encourage strategic discussions around budget performance, funding needs, and long-term planning. Re-engaging leadership now helps align priorities and builds momentum for the second half of the year.
Final Thoughts
Taking time mid-year to review your financials helps prevent surprises and supports smarter planning for the months ahead. Even simple adjustments can have meaningful impact when made early. A clear understanding now means fewer headaches later—and a smoother, stronger finish to your year.
Need help with your mid-year check-in? Our team at Han Group is here to support you. Contact us.
