Introduction
Money is the lifeblood of a nonprofit organization. Without money, there is no mission. Nonprofit sustainability requires financial leadership. Financial leadership may manifest itself in the Board of Directors (BOD) and the nonprofit organization’s Executive Director (ED).
An Executive Director is hired by the Board of Directors and serves at its pleasure. While the Board retains ultimately responsibility for the organization, they delegate its operational responsibilities to the Executive Director. Thus the ED may be charged with a diverse range of responsibilities, such as “establishing and enforcing the vision of the organization; recruiting and supervising office staff; maintaining a productive relationship with the board of directors; creating a fundraising plan that will ensure sustainability; and managing organizational finances” (CFF, 2012).
Many BODs find it in the best interest of the organization to hire an Executive Director that has strong financial leadership capabilities. They seek out an ED …show more content…
Most nonprofit staff members are inexperienced with financial data. Many staffers will develop “MEGO” syndrome (my eyes glass over) or look like “a deer in the headlight” when given financial statements or review. Many staffers are adverse to dealing with finances and will push back, claiming they are “not a finance or numbers person” or I’m a program person, it’s not my problem. The ED must engage the staff in financial discussions and processes in order to “help them embrace numbers as a critical step on the path to achieving the mission of the organization” (Bridgestar, 2009). Jeanne Bell of CompassPoint Nonprofit Services (2011) argues that no organization would accept the claim of any staffer that they were “just not a mission or program person” so why should they accept the same assertions about
Money is the lifeblood of a nonprofit organization. Without money, there is no mission. Nonprofit sustainability requires financial leadership. Financial leadership may manifest itself in the Board of Directors (BOD) and the nonprofit organization’s Executive Director (ED).
An Executive Director is hired by the Board of Directors and serves at its pleasure. While the Board retains ultimately responsibility for the organization, they delegate its operational responsibilities to the Executive Director. Thus the ED may be charged with a diverse range of responsibilities, such as “establishing and enforcing the vision of the organization; recruiting and supervising office staff; maintaining a productive relationship with the board of directors; creating a fundraising plan that will ensure sustainability; and managing organizational finances” (CFF, 2012).
Many BODs find it in the best interest of the organization to hire an Executive Director that has strong financial leadership capabilities. They seek out an ED …show more content…
Most nonprofit staff members are inexperienced with financial data. Many staffers will develop “MEGO” syndrome (my eyes glass over) or look like “a deer in the headlight” when given financial statements or review. Many staffers are adverse to dealing with finances and will push back, claiming they are “not a finance or numbers person” or I’m a program person, it’s not my problem. The ED must engage the staff in financial discussions and processes in order to “help them embrace numbers as a critical step on the path to achieving the mission of the organization” (Bridgestar, 2009). Jeanne Bell of CompassPoint Nonprofit Services (2011) argues that no organization would accept the claim of any staffer that they were “just not a mission or program person” so why should they accept the same assertions about