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Using Insurance Brokers as Trusted Business Advisors [SUBSCRIBERS-ONLY]
Insurance brokers have unique perspectives to share and should be included on your nonprofit organization’s team of trusted business advisors (“TBAs”). Insurance brokers are an organization’s first point of contact in the selection and purchase of insurance policies, and serve as an intermediary to the insurance carriers when questions, claims, and other risk management considerations arise. This experience makes your insurance broker an important resource in many aspects of risk management.
Creating a Culture of Projections: Actively Engaging Staff in the Financial Planning Process
Creating a culture of interactive, financial projection-based planning must be a primary practice within a nonprofit organization. To effectively achieve this goal, organizations need more than standard historical trend analysis derived from monthly financial statements and financial dashboards. These reports are necessary and important but should be considered as the starting point. Staff and management must be actively engaged in the planning process to create a “culture of projections” in which interactive questioning, rolling forecasts, and forward thinking can thrive.
Investment Committees Should Be About Stewardship and Not Just Market Performance [SUBSCRIBERS-ONLY]
Investment committees are often judged by how well the investment portfolio performed as compared to the market. However, investment committee responsibilities are much broader than just monitoring market performance. Nonprofit organizations will be better off if they design and focus investment committee protocols, policies and working rules around the primary role of stewardship of the organization’s long-term investment assets.
Aim for Transition Rather than Recovery
Nonprofit organizations are getting used to operating in a different world. Uncertainty, disruption, and volatility are now widely expected. Legacy planning systems and static governance tactics are a thing of the past. As we plan going forward, nonprofit leaders need to adopt a “Transition Planning” mindset instead of aiming for “Recovery” goals. There is no going back to 2019. To successfully navigate this new world, we need to bring on our “Transition Planning Swagger.”
Empathy and Social Purpose Have a Special Place in Financial Decision-Making [SUBSCRIBERS-ONLY]
Should nonprofit organizations make room for social justice, empathy, and compassion in the workplace? The answer is an absolute yes. Can financial decision-making benefit from a workplace culture that includes “social purposing”? Again, the answer is yes if you can link operational planning and allocation of financial resources with a broader set of perspectives that can surface from active “job purposing.”
Returning to the Office is More than Just an HR Challenge
Returning to an in-office working environment is more complicated than many might expect. When the pandemic started, nonprofit organizations pivoted to remote working in a matter of days, driven mostly by mandatory restrictions over which we had no control. Returning to the office is not nearly so clear-cut. This time around we control the process, so we need to be extra thoughtful with our approach and inclusive with our actions.
Apply Phase-In Strategies to Triumph Over Uncertainty and Gain Acceptance [SUBSCRIBERS-ONLY]
There has been and will continue to be a lot of uncertainty in the world, most of which is outside of our control. For example, economic, safety, and health factors have been key sources of uncertainty recently, followed closely by people’s comfort levels, trust, and confidence. Applying a phase-in strategy when implementing new changes during periods of high uncertainty will tilt the success factors in your direction.
Why Actual Timekeeping is Better Than Estimated Labor Allocations [SUBSCRIBERS-ONLY]
Labor is the largest and most precious resource for nonprofit organizations. Managing labor and directing how this valuable resource will be used are the bases for the most critical management decisions. However, too often nonprofits default to using estimated labor allocations, which is a disservice and often yields misleading results. Using actual contemporaneous timekeeping is the best method to track labor hours and observe and manage the impact that labor has on operations, resources, and financial health.
When Designing an RFP for Audit Services, Think Good First Impressions and Efficiency
Think of your request for proposal (RFP) for audit services as your initial introduction and handshake. Your goal is to make a good first impression to the prospective audit firm. You want to convey a message that is positive, thoughtful, and efficient. If you can demonstrate that your organization will be the smoothest audit on the planet, the organization will be more likely to attract high quality audit firms to submit a proposal and obtain lower fee estimates.
Finance Committee Orientation Meetings are Worth the Effort [SUBSCRIBERS-ONLY]
Is having regular finance committee orientation meetings value-added? The answer is a “Strong Yes.” If you are thoughtful with planning and execution of the finance committee orientation meeting, the answer will be an “Amazing Yes.” The return on time and effort here will pay many dividends.
Managing Current and Future Impacts of Deferred Income [SUBSCRIBERS-ONLY]
Paying closer attention to deferred income performance is a must. Monitoring trends and actively managing deferred income will optimize current and future management of this valuable resource. The best approach is to view deferred income as both a current period key performance indicator (KPI) and a resource to support future activities.
How to Get the Most Out of Audit Firm Interviews [SUBSCRIBERS-ONLY]
You have done everything right, prepared a request for proposal (RFP), obtained a list of prospective audit firms, received proposals from the audit firms, and narrowed your choice down to the top three to conduct live interviews. Now the most important step: how to conduct successful interviews to help ensure the “best” selection is made.
Using Banking Professionals as Trusted Business Advisors [SUBSCRIBERS-ONLY]
When assembling a team of trusted business advisors (“TBAs”), banking professionals should be at the top of your list. By the nature of their work, banking professionals interact with many different types of clients that are experiencing an ever-changing variety of different challenges. Thus, banking professionals generally bring value-added perspectives, opinions, and experiences that make them an important part of any team of TBAs.
Assembling a Team of Trusted Business Advisors [SUBSCRIBERS-ONLY]
In the search for different types of information, tactics, and strategies, it is important to draw on traditional internal sources (senior management, staff, and volunteer leadership) as well as external professional business sources. Assembling an experienced team of trusted business advisors (“TBAs”) from nontraditional sources will pay many dividends.
The Practical Side of Annual Conflict of Interest Disclosure Statements [SUBSCRIBERS-ONLY]
Most nonprofit organizations have adopted a code of ethics, statement of values, or code of conduct. Within these statements there is always a reference to monitoring, oversight, and transparency related to conflicts of interest. Having a strong conflict of interest policy strengthens your code of ethics posture. Adding robust annual conflict of interest disclosure statements will project an even higher level of assurance that your organization takes its code of conduct seriously.