Every nonprofit, big or small, needs to be concerned with financial planning and monitoring. One of the most important responsibilities of a nonprofit board is oversight of the organization’s financial health.
In keeping with the Standards for Excellence program model, the three essential elements of financial oversight are:
. The budget – a forward looking document, to be used in planning for the organization’s future.
. Financial statements – a current document for periodically monitoring the financial situation of an organization, and
. The annual audit – a backward looking review of the past year’s financial activities completed by an independent party.
While accurately accounting for the monthly transactions is an important function, it is also important to monitor the appropriateness of transactions and ensure that financial activities are measured and reviewed against a well designed budget that reflects the organization’s mission, goals and strategic plans.
The healthy collaboration of board members is key in designing and managing a realistic budget around its mission and strategic plan. Accurate monthly and annual reporting of financial operations offers the board and other stakeholders necessary tools to assess how effectively and efficiently the organization is tracking with its current and long term goals.
In addition to offering accurate and informative financial information of the organization’s health, a well managed financial system helps a nonprofit organization to be accessible, responsive and open to those who express interest in its affairs and mission. This vital group includes the organization’s customers, private and government donors, other stakeholders, and the general public.
The Front Range Executive Service Corps offers unique consulting services for non-profits. In our focus on your organizational health, we offer financial assessments of your organization that can identify areas for improvement and validate your strengths. If you are interested in applying for a specific service or assistance, you can complete the application at www.frontrangeesc.org/agency_application.htm. Or, if you would just like to speak with us to learn more, you can reach our Director, Randy Scott via email at randylscott1@msn.com or by telephone at 719-955-0743. Additionally, if you want to apply to be a volunteer consultant, you can complete the application at www.frontrangeesc.org/consult_application.htm.
FRESC is a local chapter of the international organization, the Executive Service Corps Affiliate Network. You can learn more about them at www.escus.org.