In any organization, there is the chance of money going missing between income and outgo. Financial or internal controls are the policies and procedures that minimize this leakage – and protect people handling the money from charges of fraud. Businesses tend to have internal controls because the owner is keeping … Read More
Some people seem to think that generating paper is a goal in itself, but the only good reason to write documents is to help you manage your business better. If it doesn’t help, you won’t use it and it will gather dust. So how can documents help? Any time you … Read More
Brand new nonprofits can face challenges avoided by established organizations. One of the strangest occurs when one person has founded the nonprofit to address a problem about which they feel passionately, especially when they are more concerned about solving the problem immediately than about building a team to solve it. … Read More
Good governance is usually used in conversations about nonprofits and government entities, but many of its characteristics apply to good management as well. Good governance is competent management of an organization’s resources and affairs, in a manner that recognizes the needs of all stakeholders. Mores specifically, good governance is: law-abiding … Read More
One of the primary responsibilities of a nonprofit board is to hire and supervise the executive director (if there is one), including setting appropriate compensation every year. Setting compensation is important for two reasons, one legal and one equitable. Legally, the IRS doesn’t like to see executive directors being paid … Read More
One thing board members, especially of nonprofits with 1-3 employees, often have trouble wrapping their minds around is the idea that they are an employer. That seems too much like being a business, not a nonprofit. But the organization is an employer with the same responsibilities as any for-profit employer, … Read More
The internet has been a real boon to organizations, both businesses and nonprofits, that need a little help getting started with documents. There are all kinds of templates and samples out there, generally free for the borrowing. Just remember that you often get what you pay for and choose your … Read More
The day-to-day work of a nonprofit is (or should be) managed by the executive director, which is managed by the board of directors, which is managed by the president. Too many board presidents, especially of smaller nonprofits, think that they manage the board by running the monthly or quarterly meetings, … Read More
Most people volunteer for a nonprofit board because they believe in the work the organization does, knowing that they will be asked to help with fund-raising and programming. However, there are several other board tasks that are vital to the success of the organization – and that can draw unpleasant … Read More