Implementing a finance committee of the board of directors was one of the best things our organization ever did—here’s why.
Here’s an example of what the committee did for us:
- Identify avenues for funding. Once they knew how Baby Bear Hugs carried out the work of the mission, program structure, and personnel, the committee focused on the financials.
Committee members learned about all the avenues for funding, from family foundations to contracts through the counties that Baby Bear Hugs serves. The committee used their diverse backgrounds to suggest areas we could tap into and were instrumental in helping the organization receive a PPP loan and in getting it forgiven.
- Enhance the outcome. The finance committee learned that each county was responsible for carrying out one fundraising event per year. The committee made it their responsibility to review these plans and results.
When they began to review county fundraisers, the committee was able to identify ways to increase the outcomes of these fundraisers. They also caught a potential legal concern with a current fundraiser (nonprofit “selling” guidelines) and helped mitigate it.
- Prepare for next year. When reviewing the budget for the following year, the finance committee helped incorporate increases in pay right into the budget so we would be prepared for it in the following year.
- Prepare for the future. The finance committee recommended, and the board approved, putting a percentage of specific fundraisers (an annual raffle and the gala) into a sustainability fund to begin building program reserves.
Read the full article about developing a finance committee for boards members by Ruth Seedorf at Blue Avocado.
If you are looking for more articles and resources for Boards and Governance, take a look at these Giving Compass selections related to impact giving and Boards and Governance.
Are you ready to give?
If you are ready to take action and invest in causes for Boards and Governance, check out these Giving Funds, Charitable Organizations and Projects related to Boards and Governance.