Podcast Summary

Nonprofits Are Messy: Lessons in Leadership

Ep 241: Nonprofit Budgets Done Right: Goals Drive and Numbers Follow
Host: Joan Garry
Date: November 22, 2025

Overview

In this episode, Joan Garry tackles the often-dreaded topic of nonprofit budgeting, reframing it as a dynamic, strategic process that can foster innovation, collaboration, and greater mission impact. Drawing from decades of experience in both the for-profit and nonprofit sectors, Joan argues that budgets should be driven by clear organizational goals, serving as living roadmaps rather than static spreadsheets. The episode is aimed at nonprofit staff, leaders, board members, and finance committees seeking to move past anxiety and tension and leverage budgeting as a tool for forward momentum and sustainable growth.

Key Discussion Points & Insights

1. The Story that Numbers Tell

Timestamps: 03:03 – 07:00

• Numbers Aren’t Just Numbers:
  • Budgets and P&Ls aren’t only about making numbers “tick and tie.”
  • Financial data tells a story, providing insight into organizational strategy and future direction.
• The Importance of Financial Storytelling:
  • Joan shares how her mentors in the for-profit world—and her natural inclination toward storytelling—shaped her ability to read and communicate the narrative behind numbers.
  • Distinguishes the roles:
    Controller = ensures accuracy;
    CFO = interprets numbers, strategizes based on them.
• Quote:

  "A CFO can look at those numbers and see the story and can communicate that story as a strategy to inform decisions they should make, tough questions they should ask themselves, and that using it becomes a vehicle for the future."
  – Joan Garry, 04:49

2. Rethinking the Purpose of a Budget

Timestamps: 07:00 – 12:00

• Budgets as Vehicles, Not Endpoints:
  • Budgets are tools serving broader organizational ambitions.
  • They should be living documents—updated and referred to throughout the year—not finished products filed away after approval.
• Quarterly Reassessment:
  • Regularly revisiting the budget (ideally every quarter) keeps it relevant and aligned with reality.

3. Goals Come Before Numbers

Timestamps: 12:00 – 19:00

• Goal-Driven Budgets:

  • The most common mistake: starting the budgeting process with numbers, not with clear, mission-aligned goals.
  • Organizations should define what success looks like for the coming year—without attaching dollars yet.

• Building Buy-In:

  • Secure board and team alignment on goals first; then—and only then—design a budget as the roadmap to those goals.

• Increased Accountability and Resilience:

  • When people are inspired by shared goals, it’s harder to justify cuts or underfunding key activities.

• Memorable Quote:

  "A thriving nonprofit presents goals. Here's where we want to go over the next 12 months... And you don't tie money to it. You tie impact to it."
  – Joan Garry, 14:21

4. Reducing Tension and Silos

Timestamps: 19:00 – 22:30

• Collaboration Over Competition:

  • Traditional budgeting pits departments (programs vs. development) and board vs. staff against each other.
  • By engaging all parties in open discussion, aligned on shared goals, organizations can foster a culture of inquiry, trust, and shared ownership.

• The Power of Ownership:

  • When staff help build their budgets, they feel responsible for delivery and more committed to actualizing the numbers.

• Quote:

  "If people own their budgets, they are 10x more likely to hit them."
  – Joan Garry, 22:10

5. Board Education & Fiscal Literacy

Timestamps: 22:30 – 25:30

• Financial Literacy for All Board Members:

  • Fiscal oversight is a shared responsibility; it cannot be delegated to the treasurer alone.
  • Board members need ongoing education to understand budgets and ask smart questions, not reflexively urge caution or risk-aversion out of anxiety.

• Board’s Role in Impact:

  • Board members join nonprofits to further impact, not just play it safe—remind them of this higher purpose.

• Notable Quote:

  "Financial literacy is a non negotiable for every board member, not just the treasurer... you are all as a collective responsible for the fiscal oversight of the organization."
  – Joan Garry, 23:01

6. Rethinking Cash Reserves & Innovation

Timestamps: 25:30 – 29:30

• The Role of Cash Reserves:

  • Joan urges boards to let go of “rainy day” hoarding and recognize that, in this challenging period (post-pandemic, economic uncertainty), the rain is already pouring.
  • Use reserves strategically for innovation, experimentation, and investment in organizational capacity and programs.
  • Develop clear board policies for accessing reserves—balancing prudent stewardship with forward motion.

• Proof of Concept:

  • Instead of asking for reserves to fund a full-blown program, propose piloting and gathering results first as a path to larger funding and bigger leaps.

• Quote:

  "I am begging on behalf of every nonprofit leader whose board is reluctant to part with reserves to think differently."
  – Joan Garry, 26:57

7. Aligning Strategy, Goals, and Budget

Timestamps: 29:30 – End

• Integrated Approach:

  • Budgeting, goal-setting, and strategic planning are intimately connected and should not be siloed.
  • The nonprofit environment is unlikely to return to “business as usual”—now is the time to adapt and innovate.

• Continuous Dialogue:

  • Even if the current budget cycle is closed, organizations can schedule quarterly reforecasts and keep priority projects alive in future planning.

• Final Call to Action:

  "If we think old school, our impact will be limited. And I'm here to tell you that... [those we serve] need more than old school. They need a holistic approach to budgeting that really focuses on goals."
  – Joan Garry, 30:00

Memorable Moments & Quotes

| Timestamp | Quote | Speaker | |---|---|---| | 04:49 | "A CFO can look at those numbers and see the story and can communicate that story as a strategy to inform decisions they should make..." | Joan Garry | | 14:21 | "A thriving nonprofit presents goals... And you don't tie money to it. You tie impact to it." | Joan Garry | | 22:10 | "If people own their budgets, they are 10x more likely to hit them." | Joan Garry | | 23:01 | "Financial literacy is a non negotiable for every board member, not just the treasurer..." | Joan Garry | | 26:57 | "I am begging on behalf of every nonprofit leader whose board is reluctant to part with reserves to think differently." | Joan Garry | | 30:00 | "If we think old school, our impact will be limited... They need a holistic approach to budgeting that really focuses on goals." | Joan Garry |

Actionable Takeaways

• Begin budget season by defining organization-wide goals first, then allocate resources.
• Involve all relevant staff and board in budget creation—promote collaborative discussion and shared ownership.
• Educate every board member not just on fiscal oversight but on strategic risk-taking for mission advancement.
• Consider quarterly budget reviews and reforecasts, not a one-and-done approach.
• Develop clear, balanced policies for using cash reserves to invest in innovation and pilot projects.
• Stay curious, focus on impact, and don’t be afraid to rethink long-standing financial practices to serve your mission better.

Tone & Style

Joan’s delivery is warm, candid, and energized, mixing practical advice with stories and humor. She reframes common nonprofit anxieties into opportunities, encouraging optimism grounded in realism—not naivety. The episode’s tone is supportive and direct, meant to mobilize leaders at every level.

Recommended Next Steps

• Share this episode summary with your nonprofit board and finance team.
• Schedule a discussion about how your organization develops and manages budgets.
• Assess current board fiscal literacy and plan training if needed.
• Re-examine reserves policy and brainstorm pilot projects that align with mission-critical goals.

For more resources and inspiration, visit joangarry.com/podcast