The Nonprofit Check-Up: Questions Every Organization Should Ask Annually

Running a nonprofit is more than delivering programs. It is about ensuring your organization remains healthy, compliant, and positioned for long term impact. Just like individuals schedule annual health checkups, nonprofits should take time each year to pause, assess, and strengthen their internal operations.

An annual nonprofit checkup helps identify risks, uncover opportunities, and ensure your mission is supported by strong systems and leadership. Below are five critical areas every nonprofit should review annually along with key questions to guide the process.

1. Governance Health

Strong governance is the foundation of a successful nonprofit. An engaged and informed board provides oversight, accountability, and strategic direction.

Key questions to ask:

Is our board actively engaged and meeting regularly? Do board members clearly understand their roles and responsibilities? Are board policies, bylaws, and conflict of interest statements current? Does the board participate in strategic planning and fundraising efforts? Are board members held accountable for attendance, contributions, and advocacy?

If governance issues are left unaddressed, they can weaken credibility, slow decision making, and limit growth.

2. Financial Readiness

Financial stability is essential for sustaining programs and attracting funders. An annual financial review ensures your organization is prepared for both opportunities and challenges.

Key questions to ask:

Do we have an approved annual budget and financial plan? Are financial reports reviewed regularly by leadership and the board? Do we have reserves or contingency plans for unexpected expenses? Are internal controls in place to prevent misuse of funds? Are we diversifying our funding sources to reduce risk?

Funders and partners want to see organizations that demonstrate sound financial stewardship and long-term planning.

3. Compliance Status

Compliance is not just a legal requirement. It protects your nonprofit’s reputation and funding eligibility. Missing filings or outdated policies can have serious consequences.

Key questions to ask:

Are all federal and state filings current, including IRS, state registrations, and annual reports? Have required licenses, certifications, or contracts been renewed? Are policies and procedures reviewed and updated regularly? Are we meeting reporting requirements for grants and funders? Is documentation organized and accessible if audited or reviewed?

An annual compliance check reduces risk and provides peace of mind.

4. Program Effectiveness

Programs are the heart of your nonprofit’s mission. Reviewing program effectiveness ensures your work is making a measurable difference.

Key questions to ask:

Are our programs aligned with our mission and strategic goals? Do we track outcomes and measure impact? Are we collecting data and feedback from participants? Are programs operating efficiently and within budget? Have community needs changed since programs were launched?

Demonstrating impact is essential for funding, partnerships, and community trust.

5. Partnership Opportunities

Collaboration strengthens capacity and expands impact. An annual review helps identify opportunities to build or deepen strategic partnerships.

Key questions to ask:

Are our current partnerships aligned and mutually beneficial? Are there gaps we could address through collaboration? Have we explored partnerships with businesses, nonprofits, or funders? Are partnerships documented with clear roles and expectations? Are we leveraging partnerships to increase visibility and resources?

Strategic partnerships can open doors to funding, shared resources, and innovative solutions.

Making the Check Up Actionable

An effective nonprofit checkup does not stop at asking questions. It leads to action. Assign responsibilities, set timelines, and revisit progress throughout the year. Consider involving board members, staff, and trusted advisors to gain multiple perspectives.

Final Thoughts

Annual reflection strengthens organizational health, reduces risk, and positions nonprofits for sustainable growth. By reviewing governance, finances, compliance, programs, and partnerships each year, nonprofits can move forward with clarity and confidence.

If you are unsure how your organization measures up or want help conducting a full nonprofit check up, support is available. A clear assessment today can prevent costly challenges tomorrow and set your organization up for long term success.