1. The demand for programs and services does not in itself guarantee success: The real issue is the sustainability of adequate funding. There is no shortage of grants that partially fund programs and services, that transfer to small and midsize nonprofits the burden and risk to deliver those programs and services. Indeed many of these small to midsize organizations choose to do programs that honor their mission with reckless abandon to fiduciary responsibilities.

2. The recent freeze has pointed to something intrinsically unsettling and episodic: the financial distress of most small to mid-size nonprofits organizations! Does your board have the resolve to break the grip of this distress that may demand radical changes in governance to move the organization to financial viability?

3. Does your organization have a sustainable fundraising model: How has the operating environment changed and is it possible that meeting increased financial demand can push the organization into further financial distress? Does your organization have the resources to invest in building a sustainable fundraising system?

4. Has your board established a threshold of minimum net assets and agreed that dropping below this minimum triggers a conversation about whether to continue or retire your organization? And if you continue are you positioned to effectively carry out your mission?

5. Faced with the task of maintaining order in a context of infinite variables – poor performance, changes in the market conditions, new competitors, mismanagement, insufficient governance – how will leadership in your organization respond?

6. Faced with a major crisis can your organization avoid insolvency or bankruptcy (Ron Mattocks asserts in Zone of Insolvency that 30% of the existing nonprofits operate perpetually in the zone of insolvency)? Can reduction in charitable gifts pose serious threats to cashflow; underfunded programs; and an already reduced workforce?

7. Do your Trustees need to exercise a healthy dose of skepticism in carrying out their fiduciary responsibility: does each member of the board understand their legal responsibility (See Sarbanes – Oxley Act)

8. In a significantly depressed economy it is critical that trustees work closely with the accountant and auditor of their organization to get a clear understanding of their Balance Sheet. Do your Trustees exercise appropriate concern about the collectability of receivables?