I once held a conversation with an Executive Director of a nonprofit. When I asked about her financial projections, her forecast for the rest of the year, she said, “I am not going to do that. I cannot spend any of my time dealing with financial numbers. I have too much other stuff to do.”
Category Archives: Financial Management
Tie Your Budget to Your Strategic Plan
One of the most common complaints about strategic planning is that, once it is approved, it sits on the shelf and molds, never to see the light of day again. This is a waste.
The Big Picture – Redux
My prior post, The Big Picture, described the high level view of nonprofit strategic planning and management. 
It showed that all nonprofits start with the recognition of a problem and a vision of the world where the problem is resolved. The mission is the commitment to achieve the vision. The vision and mission are why the nonprofit exists and should never rarely change.
The Nonprofit Financial Management Ladder
When it comes to managing finances, most nonprofits climb a consistent ladder of sophistication. Hopefully, they move quickly through the lower rungs. Continue reading The Nonprofit Financial Management Ladder
Delegation of Authority: Your Budget is Not a Straightjacket
We often hear, “I don’t want to budget. I would rather have flexibility.”
But, your budget is not a straightjacket. It is simply a feasible, acceptable, baseline for income and spending. Continue reading Delegation of Authority: Your Budget is Not a Straightjacket
The Proper Way to Budget
There are two ways to budget. Continue reading The Proper Way to Budget
Financial Forecasting
Having answered the first of the two key questions, “How are we doing relative to what we planned to do?” We can now move to the second question, “Do we have enough cash to do what we plan to do?”
Monthly Financial Summary
Budgets are necessary to answer two questions:
- How are we doing relative to what we planned to do?
- Do we have enough cash to do what we planned to do?
Budgeting 101
You have a Mission to achieve a Vision that solves a Problem. You have well-thought Strategies that directly address the Problem. You know what Actions you need to perform to execute the Strategies.
Now you need a Budget.
The Big Picture
Managing a nonprofit is very nearly a science. There are certain fundamental steps that you must take to ensure an effective, efficient program. Sure, there are lots of issues in Human Relations and Development, but the fundamental management steps, from the board’s perspective, remain the same. Continue reading The Big Picture