Introduction Within a non-profit organization the chief executive officer (CEO) is often referred to as the executive director. The chief executive officer or the executive director retains the highest power in a non-profit. The CEO should be someone who has a strong background in all subjects as it relates to the non-profit. As the CEO of a non-profit it is important that the CEO is fluent in financial leadership to help the organization become and remain a success. In order for the nonprofits to make sure they have a strong financial leader in place, the organization must make sure that the CEO’s has a strong financial background and exhibits multiple business principles.
Financial Leadership A nonprofit professional should have strong …show more content…
The first key principle is being able to activate or create an annual budget. The key to great leadership is being a leader that knows what the organization needs to become or stay successful. A non-profit cannot be successful if they are following a budget that does not fit their plans of operation. The best budgets will be in align with a detailed annual plan that is a written narrative that all the staff and board members clearly understand and are able to help the non-profit stick to the budget to insure a successful year(Barr, & Bell, 2011). The second key principle is that the CEO should be able to help determine any risk factors that may occur. All decisions made will have a certain percentage of risk but it up to the CEO to be able to advise the board members of risk that may follow any given financial decision. It is very risky for a non-profit to just depend on one source of financing the non-profit. As a good financial leader the CEO should be able to help give directions on different funding sources to help cover income that may be risky at times and not be delivered. The third key principle would be having a CEO that is able to help create and maintain overflow. Once a nonprofit has an overflow or cushion there needs to be a plan by the CEO to help maintain that revenue in case of an emergency. The money in reserve should not be used unless there are no
Financial Leadership A nonprofit professional should have strong …show more content…
The first key principle is being able to activate or create an annual budget. The key to great leadership is being a leader that knows what the organization needs to become or stay successful. A non-profit cannot be successful if they are following a budget that does not fit their plans of operation. The best budgets will be in align with a detailed annual plan that is a written narrative that all the staff and board members clearly understand and are able to help the non-profit stick to the budget to insure a successful year(Barr, & Bell, 2011). The second key principle is that the CEO should be able to help determine any risk factors that may occur. All decisions made will have a certain percentage of risk but it up to the CEO to be able to advise the board members of risk that may follow any given financial decision. It is very risky for a non-profit to just depend on one source of financing the non-profit. As a good financial leader the CEO should be able to help give directions on different funding sources to help cover income that may be risky at times and not be delivered. The third key principle would be having a CEO that is able to help create and maintain overflow. Once a nonprofit has an overflow or cushion there needs to be a plan by the CEO to help maintain that revenue in case of an emergency. The money in reserve should not be used unless there are no