Bracing for Impact: How Nonprofits Can Stay Financially Resilient Amid Policy Shifts

How I Helped a Client Extend Their Cash Runway by 25 Days, Without Letting Go of a Single Employee

At the height of the COVID shutdown, I got a call from a nonprofit client in a full-blown panic.

They served vulnerable community members and relied heavily on foot traffic, in-person programs, and donor contributions to stay afloat. Practically overnight, all three dried up.

Their earned revenue vanished. Donations slowed to a trickle; people were scared and uncertain about their own finances. With only 30 days of cash left and a payroll full of people they refused to let go, the stakes couldn’t have been higher.

They didn’t need theory. They needed strategy. Fast.

This is where the real work of a fractional CFO comes in: bridging the gap between survival and sustainability without breaking what makes the organization special.

Together, we stretched their runway by nearly a month, without laying off a single employee.

Here’s how we did it — and how you can apply the same principles to your business during tight times.

Step One: Get Clear on the Burn Rate

Before you can fix a cash problem, you need to understand the exact shape of the problem.

We calculated their monthly burn: about $650K in expenses against incoming cash that fell short by $45K.

That’s a silent drain that turns into a disaster if left untouched. We needed a roadmap, and we needed it immediately.

6 Practical (and People-Friendly) Ways to Reduce Costs Quickly

Here are the exact steps we took — ones I now recommend to nearly every client experiencing a cash crunch.

1. Slash Discretionary Spending (30–50%)

First to go? Travel, team meals, office snacks, and nice-to-haves. We paused all nonessential spend. Events went virtual. Spending required leadership approval. These changes saved about $25K/month.

Pro tip: Make a rule — nothing discretionary gets purchased without executive sign-off.

2. Trim Low-ROI Marketing (15–20%)

They were spending on marketing that felt good but didn’t convert. We pressed pause on “brand awareness” campaigns and doubled down on one direct-response channel that was actually working.

Pro tip: If a campaign doesn’t earn its keep within 90 days, it’s on the chopping block.

3. Renegotiate Facility Costs (5–10%)

Rent may feel fixed, but it often isn’t. We worked with their landlord for temporary relief and implemented energy-saving measures that lowered utilities.

Pro tip: Consider subleasing unused space or adopting a hybrid work model if your lease allows.

4. Cut Non-Essential Services (15–20%)
We reviewed all third-party vendors. If a service didn’t tie directly to their mission, it was paused or renegotiated. One contract cut alone saved $12K/month.
Pro tip: Vendors would rather offer discounts than lose you completely — just ask.

5. Audit Tech and Subscriptions (10–15%)

We found overlapping software, outdated tools, and unused licenses. A quick audit and downgrade of several platforms netted $3K/month in savings.

Pro tip: Schedule quarterly software audits to keep tech costs under control.

6. Delay Capital Expenditures

They had planned a $50K equipment upgrade. We postponed it. It wasn’t essential to operations and delaying it bought us precious time.

Pro tip: If a capex doesn’t create revenue or reduce risk, it can probably wait.

Immediate Tactics to Stop the Bleed

Alongside monthly savings, we made quick changes to slow the cash drain:

• Expense Freeze: All non-essential spend required CFO review.
• Accounts Receivable Push: We offered modest discounts for early payment and followed up on aging invoices.
• Vendor Calls: Two days of intense renegotiation led to over $15K/month in savings.
• Hiring Freeze: No backfills, no new roles — just smarter work distribution.

We communicated everything with clarity and compassion. Employees were relieved to see leadership stepping up — because job security means everything during a crisis.

Looking Beyond the Crisis

We didn’t stop at band-aids. We built better systems to weather future storms:

• Weekly cash flow forecasting
• Real-time dashboards for burn rate, runway, and cost categories
• Quarterly cost reviews
• A culture of team-led cost-saving ideas

The Result? 25 Extra Days of Runway and a Stronger, Smarter Team

In just a few weeks, they turned a 9% cut into $55K/month in savings. It wasn’t just about plugging a hole — it created breathing room. More importantly, they kept every employee on payroll.

This is the kind of work I do every day at Steady Hand Accounting: helping small businesses and nonprofits make the most of every dollar without sacrificing people or purpose.

Ready to Cut Costs Without Cutting People?

If you’re staring down a financial squeeze, or you want to prepare before one hits, let’s talk.

I’ll help you build a strategy that prioritizes your mission, protects your people, and strengthens your finances for the long haul.