Hughey's Debits & Credits: Bookkeeping. Payroll. Taxes.

All posts tagged board responsibilities

 

Not everyone can be a financial expert, but board members should be inquisitive and keep an eye on these three areas to spot red flags:

  1. Dip in Cash Flow – Is this normal? Is this unexpected?
  2. Financial reports with unfavorable variances and deficits
  3. Increasing liabilities – Is this a trend or pattern?  Why are debts ballooning?

According to Kate Barr, the Executive Director of the Nonprofit Assistance Fund, “Boards pay too much attention to income statements and budgets, both short-term information, and not enough attention to the long-term perspective of balance sheets. Yellow flags are on the income statement. Red flags are on the balance sheet.” Read more

Every Nonprofit is required to have a board. It should be easy to find people who believe in your mission and want to assist your organization, right?

Well let’s focus on who makes up your board. Most boards are comprised of business owners, leaders, and executives of the community. They’re busy people and their time and attention is in high demand. You want these types of people on your board because they don’t require a lot of hand holding.

How do you keep your proactive board focused and involved so you stay at the top of the priority list? Read more