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Nonprofit
Nonprofit Tip: How Are Your Financials?
Sudden awful news from a nonprofit I know has me asking a ton of questions.
As I listened to the story, my gut began to ache.
I was listening to something that seemed unbelievable. A nonprofit received news that something was off with their financials and that there had to be an immediate staff reduction.
Immediately, meaning the next day.
There was no money and no immediate fix.
Nobody saw this coming, even though there had been issues with the finance team.
I don’t know what exactly happened or who was directly at fault. My mind went to how to ensure this doesn’t happen with my clients.
After meeting with a close CFO friend, here are a few suggestions they came up with:
The board treasurer keeps an eye on all financials and discusses any anomalies with the CEO/ED.
Ensure the board approves an annual budget before the start of the fiscal year.
Have a board finance committee that meets regularly (they suggest monthly) to discuss organizational finances and financial documents.
