Mid-Year Reforecast

A Mid-Year Reforecast is a financial planning process where an organization reviews its original annual budget midway through the fiscal year and updates projections based on actual income and expenses to date, as well as revised expectations for the remainder of the year. This process helps nonprofits adjust for unforeseen changes, such as shifts in funding, program costs, or economic conditions. By revisiting budget assumptions and making data-informed adjustments, organizations can better align their financial plans with current realities, ensuring responsible stewardship of resources and helping avoid year-end surprises. A mid-year reforecast typically involves collaboration between finance staff, program managers, and leadership to ensure all relevant factors are considered.