As a former executive director, I know how daunting it is to manage finances mid-year when also juggling programs, fundraising, and day-to-day operations.
By this point in the year, it’s tempting to “kick the can down the road” when targets are missed or expenses rise unexpectedly.
But doing so only leaves you with fewer options to course correct.
A mid-year financial assessment provides a clear, realistic picture of your finances so you can make strategic adjustments now, while you still have time to act.
Here’s how to approach a thorough financial review:
First, Set Up Your Worksheet.
Open an Excel worksheet. Add your line item names in the first column.
In the next column, enter your actual results from the first six months.
The third column is where you’ll enter your original budget for the next six months.
Create a fourth column where you’ll record any adjustments to the remainder of the year.
Add the three financial columns together to get an initial forecast.
Now, review the Initial Forecast.
If you already know adjustments that need to be made, enter those changes in the adjustment column.
My rule of thumb: don’t make any adjustments without a specific plan or explanation.
The purpose of this exercise is to create a realistic financial forecast for the rest of the year, not to ignore reality.
Third, hone in on ticket revenue.
Ticket revenue is often one of the biggest areas of variance.
Compare budgeted revenue to actual performance for the first half of the year.
If actual revenue exceeds plus or minus five percent of budgeted revenue, take a deeper look at your budget for the remainder of the year.
Calculate your average ticket price and determine the number of tickets you need to sell to meet budget.
If this target is unrealistic based on historical sales, reforecast revenue based on achievable expectations.
After you’ve looked at ticket revenue, Analyze Donor Giving Trends.
Donations are another common source of over-optimism in budgets.
Break down donor gifts by giving levels and compare this year’s performance to last year’s.
Calculate percentage changes, focusing on levels with significant variances–for example, greater than ten percent.
Use this analysis to adjust your fundraising strategy and ensure donor engagement efforts align with realistic revenue goals.
Finally, Reforecast Cash Flow.
Once you’ve updated your revenue and expense projections, reassess your monthly cash flow.
Add up expected inflows and outflows for the rest of the year.
Are there months where cash reserves might fall short?
Seasonal patterns like the post-holiday dip or major expenses can create challenges.
Use this forecast to plan now, adjusting spending and prioritizing cash flow management to avoid crises later.
Remember, the goal of this process is to create a realistic and actionable understanding of your finances—so you can act now, with time to make meaningful changes.
If you’d like a step-by-step guide for this process, download our free Mid-Year Financial Assessment Checklist.
It’s a practical tool to help you prioritize your resources and adjust your plans effectively.
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