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Enhancing the Nonprofit Treasurer Role and Relationship
Most treasurers for nonprofit organizations do not venture outside their traditional role of stewardship of the organization’s financial assets. Financial stewardship is important, but the perspective of the treasurer has value far beyond this singular role. Treasurers and the organizations they serve both need to correct this narrow perception and look for opportunities to expand the sphere of influence of this important officer position.
The Problem with Hybrid Meetings and Events
In-person meetings and events are completely different animals from virtual meetings and events and that difference needs to be recognized and respected. In-person and virtual formats work best when they are exclusive and not combined into a “hybrid” format. While hybrid meeting and event formats may be used occasionally in response to unexpected disruptions, they should not be viewed as the new normal or a long-term option for the future.
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VIDEO PODCAST: Why Nonprofits Should Have Operating Reserves [SUBSCRIBERS-ONLY]
Ben and Mike discuss the reasons why operating reserves are essential for the financial health and sustainability of nonprofit organizations, the short-term and long-term purposes of operating reserves, lessons learned from past economic disruptions, and some recommendations for operating reserve policies.
Q&A #165 – How often should a nonprofit CEO provide updates to the Board of Directors?
Providing monthly Board reports that include financial reporting and progress updates is an established best practice, and this is especially recommended during periods of change and for organizations whose Boards meet quarterly or less frequently. However, CEOs and Executive Directors must be thoughtful about the frequency and their method of communicating with the Board. Providing updates more often than monthly is usually only recommended in unusual situations.
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How to Use Non-Traditional Communication Pathways to Enhance Board Member Engagement [SUBSCRIBERS-ONLY]
Always be on the lookout for proactive and unique communication opportunities to stimulate Board member interest in your nonprofit organization’s mission and activities, foster positive feelings, and generally catch their attention. Because we live in a world of constant change that is further complicated by Board turnover (new Board members entering while other Board members are exiting or rotating through officer positions) it is essential to be creative and flexible with Board member communications by incorporating both traditional and non-traditional tactics.
Remembering the Long-Term Purpose of Operating Reserves
No one questions whether it is important for nonprofit organizations to build and maintain adequate operating reserves. This is a best practice that is not only widely accepted, but also an expected goal for senior management and governance to pursue and protect. However, there often is a tendency to focus too much on the short-term reasons for building and maintaining operating reserves causing us to lose sight of the often more important long-term purpose for building operative reserves.
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VIDEO PODCAST: The Role of a Nonprofit CFO [SUBSCRIBERS-ONLY]
Mike and Ben discuss the importance of CFOs taking on a broader role in order for nonprofit organizations to thrive and reach their fullest potential as well as the challenge of balancing their traditional finance duties with their role as a strategic thought leader within the organization. Additionally, Mike and Ben discuss tactics for navigating this balance through improving the integration of the CFO within the C-Suite, more effective financial messaging and communications, and having more strategic financial discussions.
Establishing a Form 990 Review and Approval Process
Many nonprofit organizations treat the annual Form 990 filing like a sprint at the end of a long 5K race. After the year is completed and the audited financial statements finally appear, the rush to get the Form 990 assembled and filed too often becomes a hectic “mad dash.” Formalizing the process for review and final approval of the Form 990 before filing will help to avoid mistakes, better reflect current conditions, and show the organization in the best possible light.
The Best Nonprofit CFOs Go Beyond the Numbers
Chief financial officers (CFOs) occupy a unique position of leadership within a nonprofit organization’s senior management team. Often, CFOs are viewed only as protectors of financial assets, immersed in the numbers and devoid of strategic thought. CFOs must work harder to shed these images and venture beyond the numbers to be thought leaders, advocates for strategic change, and catalysts for innovation to help organizations grow and advance their mission.
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Determining When to Involve the Board in HR Matters [SUBSCRIBERS-ONLY]
Nonprofit organizations must be extra vigilant when it comes to managing unexpected and often rapidly changing human resources (HR) issues. Hesitation to react can lead to dire consequences. However, reacting without meaningful contemplation can be equally dangerous. One critical consideration is how to develop guidance for discussions and messaging with Board members on changing HR issues.
Three Tactics for Communicating Difficult Budget Issues to Your Board
Difficult budget issues can often arise quickly and unexpectedly. To maintain a high level of trust with your nonprofit organization’s Board and remain transparent, collaborative, and inclusive, be sure to communicate in a timely and thoughtful manner.
Successful Charity Auctions Start with Careful Planning
Charity auctions are used by nonprofit organizations of all shapes and sizes. Organizations that are thoughtful with their investment in time and planning can realize major benefits from their charity auctions. However, many nonprofits commit to holding charity auctions without committing to the time, planning, and due diligence necessary to realize the most successful event possible. A poorly planned charity auction can potentially impact net proceeds received, damage the organization’s reputation, and even expose the organization to tax liabilities and other possible risks.
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CHECKLIST: Charity Auctions Done Right [SUBSCRIBERS-ONLY]
R. Michael Sorrells (CPA) and A. Michael Gellman (CPA, CGMA) jointly authored this checklist of key “Dos” and “Don’ts” to help your nonprofit optimize its charity auctions, run them efficiently and without unwanted hiccups, and be prepared to comply with key tax and legal requirements.
Key Takeaways from the 2021 ASAE Annual Meeting
My expectations and experiences from the virtual 2021 ASAE Annual Meeting were different from last year because I thought for sure we would be meeting in-person this year, which, of course, turned out not to be the case. This simple statement was confirmation that the world around us has changed for the long term. Three observations hit home that made a deep impression related to nonprofit organization management practices: listen with purpose, stop using outdated contract templates, and take a fresh look at policies.
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Enterprise Resource Planning Should be About Mission, Not Just Systems [SUBSCRIBERS-ONLY]
Enterprise Resource Planning (ERP) is a hot topic in the field of nonprofit operations. Business systems need to run at maximum efficiency. We also need robust system integration to help nonprofit organizations to adapt to rapidly changing economic conditions (funding) and demand for services (programs and activities). However, ERP focus is too often centered on business systems by themselves when attention should be focused on mission and purpose.