Archive for the ‘Fiduciary’ Category

Begging for Change: The Dollars and Sense of Making Nonprofits Responsive, Efficient, and Rewarding for All by Robert Egger 

In Begging for Change, Robert Egger looks back on his experience
and exposes the startling lack of logic, waste, and ineffectiveness he
has encountered during his years in the nonprofit sector, and calls for
reform of this $800 billion industry from the inside out. In his
entertaining and inimitable way, he weaves stories from his days in
music, when he encountered legends such as Sarah Vaughan, Mel Torme,
and Iggy Pop, together with stories from his experiences in the hunger
movement — and recently as volunteer interim director to help clean up
the beleaguered United Way National Capital Area. He asks for
nonprofits to be more innovative and results-driven, for corporate and
nonprofit leaders to be more focused and responsible, and for citizens
who contribute their time and money to be smarter and more demanding of
nonprofits and what they provide in return.

 About two years ago, my husband and I realized that our spending had gotten completely out of control. We didn’t have a handle on our finances, and it was very stressful. At one point, we had close to $300 in insufficient funds fees all from not keeping an eye on our account. Today we have a budget, a very detailed one that we review every week.

The budget is a crucial component for all businesses. This is the one area where you really should sit down and take your time developing. You even need to me clear about whether or not you want to operate a cash based business, meaning only get what you can absolutely pay for without getting loans.

As for starting a nonprofit, budget creation is essential. (Revisit an old post.) You’ll want to be careful not to exaggerate the budget, but to stick to actual figures. The reason for this, nonprofit funders are looking carefully at your budget. For the most part, they want to know what will become of their investment. Also, you have to be ready to share itemized expense reports with your funders. Funders/contributors are very skeptical, as they should be, about
where their funding dollars are going. So, be clear, and detailed about your financial needs.

It is a great idea to revisit your overall budget quarterly, and a monthly check up to ensure that you are keeping an eye of your bottom line is essential for a healthy business.