Uncertainty isn’t new — but today’s version feels sharper. With the reintroduction of global tariffs, supply chain disruptions, unpredictability of donors and customers, and economic signals pointing in multiple directions, businesses and nonprofit organizations alike are grappling with an uncomfortable reality: the rules are shifting, and the pace is accelerating.
While we cannot control the external environment, we can control how we prepare for it. Uncertainty is inevitable — but instability doesn’t have to be. Organizations that thoughtfully plan for multiple outcomes, integrate tax implications into strategic decisions, and build in financial flexibility are far better positioned to navigate change with confidence and clarity.
In this blog, we explore why these tools matter — and how to practically implement them now.
The Case for a More Adaptive Strategy
Economic volatility often exposes rigidity in plans that were never built to bend. Many organizations rely on static annual budgets, over-optimized cost structures, or a single primary funding stream. In a low-risk environment, these strategies may be sufficient. But in a high-variability environment, they can become challenges, at best, and liabilities, at worst.
To remain resilient, organizations must:
- Anticipate multiple futures (not just the one they hope for)
- Ensure access to liquidity and working capital
- Incorporate tax strategy into planning, not just compliance
- Diversify revenue and supplier exposure
- Adapt quickly when early warning signs emerge
Practical Steps to Build Strategic Flexibility
Here are five practical actions leaders can take now to integrate flexibility into their strategic planning:
1. Model “What If” Scenarios Across Key Risk Areas
The foundation of contingency planning is visibility into how different economic or operational shifts could impact your organization. This includes modeling:
- Revenue loss from donor withdrawal or delayed investor funding
- Cost inflation from tariffs or raw material shortages
- Operational impacts of supply chain disruption
- Capital constraints or reduced access to credit
2. Reevaluate Cost Structures with Resilience in Mind
While cutting costs may seem like the immediate solution, the more strategic approach is to audit cost structures with an eye toward adaptability — not just reduction.
Focus on:
- Identifying fixed vs. variable cost flexibility
- Renegotiating vendor contracts to improve payment terms
- Reviewing discretionary spending tied to less critical functions
- Consolidating duplicative operations where appropriate to streamline processes and gain operational efficiencies
3. Build Liquidity with Smarter Cash Flow Forecasting
Cash is still king in times of uncertainty. Organizations that maintain visibility over their liquidity runway — and plan for constraints — will be better positioned to act when it matters most.
Action items:
- Move from static cash flow reports to rolling 13-week forecasts
- Prioritize building or rebuilding a 3–6 month operating reserve
- Map alternate financing options in advance (e.g., lines of credit, divestments, capital calls)
4. Integrate Tax Planning Into Strategic Decision-Making
Too often, tax is treated as an after-the-fact consideration. In volatile environments, proactive tax strategy is critical to protecting margins and reducing exposure.
Consider:
- How tariff-related costs affect transfer pricing or intercompany agreements
- Whether re-sourcing supply chains could shift your nexus or tax exposure
- Opportunities for accelerated deductions, deferrals, or credits under current law
Collaborate early with tax professionals to model after-tax impacts of strategic decisions and avoid surprises.
5. Diversify Revenue Streams and Reduce Over-Reliance
Donor concentration, customer dependence, or product/service silos can create significant fragility. Consider setting aside time to:
- Explore new revenue-generating activities aligned with your mission or business model
- Evaluate partnership or co-branding opportunities to broaden reach
- Identify cost-neutral ways to expand offerings or tap into new segments
- Nonprofits: Assess funding sources not only for their size but for their stability. Is your grant funding multi-year? Are donor relationships at risk?
Final Thought: Resilience is a Mindset
Being prepared doesn’t mean predicting the future — it means being equipped to pivot when the future changes. Whether you’re a nonprofit facing donor volatility or a business navigating tariff-induced cost pressures, resilience comes from foresight, flexibility, and disciplined financial strategy.
At SST Accountants & Consultants, we’re here to help organizations build that resilience through tailored scenario planning, operational analysis, tax strategy, and financial modeling. Our team can help you develop a flexible, forward-looking plan that supports your mission and goals while adapting to evolving challenges. To explore how we can support your organization, we invite you to schedule a consultation with our advisory team.