Nonprofit organizations that are burning through cash typically can’t just ask their donors and partners for more money without first stemming the tide of cash outflows. Funders want to see that an organization is being a good steward of their finances before they are willing to continue (or increase) their contributions. But even aside from the discussion around future funding requests, an organization must shore up their spending to remain viable into the future.
These are all statements I have made throughout my career, and that I have heard echoed from my peers in nonprofit leadership. And that’s a problem! Each of these statements point to an unspoken issue that should concern a board of directors. Ignoring those unspoken issues now might be setting you up for problems down the road.
Unfortunately, too often these kinds of statements are welcomed and even encouraged by board members. Boards often find reassurance in knowing that they have someone at the helm that’s dedicated to their mission. Additionally, they like the idea of saving money while doing great work. But they are, in fact, red flags that board members should be concerned about.
As a result, many organizations are beginning to seriously evaluate what kind of measures can reduce turnover among nonprofit executives.
Consider the following nonprofit employment statistics:
Let’s take a look at how much this kind of turnover is costing your organization, why employees are deciding to leave, and what you can do to stop it!
As head of CFO Selections corporate philanthropy initiatives, the question I get most often, especially now at budget time, from other company executives is, “What is the right amount of money to budget for donations?”
Before answering this question, I usually ask,
“What are you hoping to achieve with your corporate philanthropy?”
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