There is a world of difference between financial management and financial leadership, and refocusing your approach from fiscal management to fiscal sustainability gets you there. Outlined in this expert guide are such essential steps as: transforming your annual budget analysis; deciding whether or not income diversification is the way to go; achieving a robust reserve; and equipping your board for effective financial governance.

Written by Kate Barr of Nonprofits Assistance Fund and Jeanne Bell, MNA of CompassPoint Nonprofit Services in Nonprofit Quarterly, Winter 2011.