Giving Compass’ Take:
• This report discusses the importance of board members who understand how different funding sources impact charitable work and how to implement best practices for an organization’s financial security.
• How can board members utilize feedback tools to understand more about what donors want and what organizational leaders can deliver?
• Here are 10 nonprofit funding models.
As a board member, you are probably very familiar with some aspects of not-for-profit management. You understand the basic need to raise money to support the activities of the organization for which you volunteer, and you probably have seen the fundamental challenge every not-for-profit management team faces – to make the dollars raised go as far as possible.
However, in addition to addressing funding challenges, as a board member you now have a legal responsibility to protect the organization’s assets by overseeing its financial activities and implementing “best practices” to protect the organization. For board members without experience in not-for-profit accounting, and especially for those without any
formal accounting training, it is easy to neglect this important responsibility and bear some liability for the outcome.
This booklet is designed to help you perform your financial responsibilities more effectively.
Not all money is good money, but with the right set of tools and procedures for
evaluating the appropriateness of funding sources, your organization will be better
prepared to proactively assess risk and to simplify decision-making in the future.