Practical insights to help you strengthen your mission, stay compliant, and stay ahead
As 2026 approaches, many nonprofit leaders are asking the same question:
“What should we be preparing for now?”
The challenges are real—but the good news is that with a clear plan, you can move into the year confident and prepared. Below are six areas that will matter most and what you can do today to stay ahead.
1. Expect More Scrutiny on Internal Controls
Auditors, funders, and boards are placing greater emphasis on how nonprofits safeguard their finances. Even small teams must show clear review processes and documented checks and balances.
What to do now:
- Put your key controls in writing (not just “understood”)
- Keep evidence of your reviews
- Revisit segregation of duties, especially after turnover
Think of internal controls like seatbelts—you barely notice them until they save you.
2. Single Audit & Grant Compliance Standards Are Rising
For organizations receiving federal or pass-through funding, expectations continue to increase. Funders want stronger documentation, cleaner SEFAs, and clearer time-and-effort support.
What to do now:
- Create an organized file for each grant
- Verify that payroll allocations are properly documented
- Refresh procurement and reimbursement procedures
- Consider a “mini-checkup” before audit season
Grant dollars come with strings—your job is not to get tangled in them.
3. Technology Modernization Is Now Essential
Relying solely on spreadsheets or outdated systems is becoming unsustainable. Modern tools make reporting easier, strengthen controls, and reduce audit stress.
What to do now:
- Review whether your current system still meets today’s needs
- Explore cloud-based options with built-in workflows
- Tighten user access and cybersecurity policies
If your software is older than your mission statement, it’s probably time.
4. Financial Sustainability Requires More Strategic Attention
Rising costs, uneven revenue, and delayed funding cycles continue to put pressure on nonprofits. Intentional planning around financial resilience is critical.
What to do now:
- Reevaluate reserve targets
- Build a simple multi-year forecast
- Identify programs facing financial strain
- Encourage board participation in sustainability discussions
A little planning now beats a lot of scrambling later.
5. Board Engagement Matters More Than Ever
Boards are expected to play a more active role in oversight, risk management, and strategic guidance. Organizations with informed, engaged boards are navigating uncertainty more successfully.
What to do now:
- Share visual financial dashboards—not just statements
- Offer annual board training or refresher sessions
- Encourage committees to document their oversight processes
Your board can be your biggest accelerator—give them the tools to lead well.
6. Staff Capacity & Talent Strategy Will Shape 2026 Success
Turnover, hybrid schedules, and expanded responsibilities mean nonprofit teams are stretched thin. Strengthening capacity is now a top priority.
What to do now:
- Cross-train key roles
- Consider outsourced or fractional support where useful
- Reevaluate workloads before high-demand seasons
- Document processes to reduce single-point dependency
Support your team well—they’re the reason “mission possible” is possible.
Looking Ahead: You Don’t Have to Navigate 2026 Alone
The year ahead doesn’t need to feel daunting. With intentional preparation, your organization can enter 2026 stronger, more resilient, and more confident.
If you’d like help assessing your readiness in any of these areas, our nonprofit team is here to guide you—so you can stay focused on what matters most: your mission.
To help navigate the complexities, contact Daniel B. Sefick, CPA, CGFM, Principal and National Director, Nonprofit Solutions, for strategic guidance and support.
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