Best practices for social change and environmental action

Posts Tagged ‘financial management’

Getting the board to talk math

In Finance, Fund raising, Money management, Nonprofit management on June 25, 2012 at 6:37 pm

It’s a rare board member who can really get into a nonprofit’s operating numbers. Yet, every board has to know where the money comes from…and how it’s used.  Moreover,  it’s essential that the board understand – at strategic, tactical, and priority levels – what the organization needs to meet its goals and live up to its mission.

The trouble, of course, is that such discussions can devolve into dreary dog and pony shows.  How much more effective would it all be if you could flip the model to get the board talking, taking notes, and running some numbers themselves?

Fund raising guru Gail Perry, author of Fired Up Fundraising: Turn Board Passion into Action and the excellent Fired-Up Fundraising blog has some good thoughts on that.  It essentially comes down to asking three questions:

  • Where does our money go?
  • Why does it cost so much?
  • What do we need to invest right now?

She gives some excellent real life examples in her article over at the Guidestar site: What’s the Math? Three Questions Your Board Members Really Need to Know. (The article is reprinted from the blog.)

It seems so simple…at first…but it really made me think.

# # #