Across Virginia, nonprofit leaders are strengthening their organizations and communities by putting CNE’s 7 Actionable Principles into practice. CNE’s 7APs in Action series highlights members whose work reflects the leadership, adaptability, and long-term vision needed to build a strong and sustainable social sector.
1. Create strategic budgets
2. Manage financial position
3. Build relationships
4. Prioritize equity
5. Develop leaders
6. Collaborate with communities
7. Evaluate impact
This issue features Kathlyn Terry Baker, Chief Executive Officer at Appalachian Sustainable Development (ASD). Her leadership reflects a deep and practical commitment to Principle 2—managing financial position—not just as an exercise of fiscal responsibility, but as an essential strategy for resilience, adaptability, and long-term impact.
ASD’s programming spans five interconnected impact areas: agriculture education, food access, workforce development, resource management, and economic development. At the center of this work is the organization’s Food Hub in Duffield, Virginia—a longstanding initiative that has connected farmers with produce brokers and grocery chains for 26 years. The Food Hub has served as an economic engine for regional producers, a hub where food pantries and those in need can obtain boxes of fresh, local food, and a cornerstone of ASD’s mission to strengthen Appalachian community.
While ASD is a deeply rooted institution in the region, its longevity is driven by a willingness to evolve. As community needs shift, so too does the organization’s approach. One example is the 2020 launch of Groundwork, a workforce development program designed to support individuals facing barriers to employment in discovering their skills, interests, and long-term career pathways, all while being paid for on-the-job training. This kind of innovation reflects ASD’s broader philosophy: staying responsive, even when change is difficult.
Principle 2: Manage Financial Position
That same commitment to adaptability has shaped ASD’s approach to financial management—especially in the face of significant disruption. In 2025, federal funding cuts to agriculture initiatives resulted in a total loss of $4.2 million to ASD’s budget. The impact was immediate and consequential: the organization had to first pause its food box program, an initiative that had purchased produce from local and regional farmers and distributed it to food pantries across the region. They were eventually able to bring the program back by reducing the amount of food being included in the food boxes.
The changes to the food program were not just a financial setback—they were a moment of reckoning. As Kathlyn and her team assessed the path forward, they recognized the need to sharpen their focus and strengthen the financial sustainability of their core operations.
That focus turned to the Food Hub, which generates approximately $3 million annually but still relies on grant funding to cover 5% of its operating costs. While successful, this model left the program vulnerable to the same funding volatility that had just forced difficult decisions elsewhere in the organization.
In response, ASD began prioritizing strategies to reduce reliance on grant and philanthropic funding. A key part of this effort has been identifying and securing new markets for the farmers they support—expanding buyer networks and increasing earned revenue opportunities. By strengthening the Food Hub’s financial independence, ASD is working to ensure that its most critical program can withstand future funding shifts while continuing to serve both producers and communities.
Support from CNE has played a meaningful role in this transition. As ASD faced a pivotal moment, the organization explored bringing in outside consultants for strategic planning, but found the cost prohibitive. The opportunity to participate in CNE’s strategic planning cohort—offered at no cost through the support of the Wellspring Foundation—provided a timely and accessible alternative.
Reflecting on the experience, Kathlyn shared: “The strategic planning cohort came at exactly the right time for us. It gave us the space, structure, and support to step back from day-to-day demands and really think about our future in a more intentional way.”
Beyond affordability, the cohort offered through CNE provided something equally valuable: relevant, nonprofit-specific guidance and a sense of partnership. Through structured sessions and peer learning, ASD’s leadership was able to step out of reactive mode and into more proactive, long-term thinking—an essential shift during a period of uncertainty.
Looking back on the past year, Kathlyn summed up ASD’s experience in a single word: “Pivoting was the operative word for 2025.”
That spirit of pivoting—of adjusting course while staying grounded in mission—captures what has sustained ASD for more than three decades. It reflects an organization that understands when to protect what’s working, when to let go of what no longer serves its goals, and how to make disciplined financial decisions that keep its work moving forward.
In an increasingly complex nonprofit landscape, ASD offers a clear example of what it means to manage financial position not just as a necessity, but as a strategic lever for resilience, adaptability, and lasting community impact.
