| Acknowledgements |
i |
| Foreword |
iii |
| Section I: Planning and Priorities |
1 |
| 1 Your Introduction to Board Financial Oversight |
2 |
| 2 Your First Duty Is to Sustain the Mission |
4 |
| 3 Planning: Linking Mission to Money |
7 |
| Forecasting and Economic Models |
7 |
| Structural Balance |
9 |
| Section II: Building a Mission-Focused Budget |
12 |
| 4 Introduction to Budgeting: Implementing Your Plan and Mission |
13 |
5 Reviewing Priorities
Three Crucial Questions
Making Changes |
15
15
16 |
6 Five Features of an Effective Budget
Long-Term Perspective
Linkages to Broad Organizational Goals
Focus on Results and Outcomes
Effective Communication to Stakeholders
Constructive Motivation of Staff |
18
19
20
20
21
22 |
| 7 Is Your Budget “Conservative”? |
23 |
| 8 Profit-making by Nonprofits |
26 |
9 An Example of a Budget Approach for a Strategically Focused Board
Continuation and Initiative Budgeting
Criteria for Budget Decisions |
28
29
31 |
| Section III: Using Your Board Meetings Effectively |
33 |
10 Getting Organized: The Financial Roles of an Effective Board
Three Critical Board Duties
Board Officers and Their Roles
Board Committees and Their Roles |
34
34
35
37 |
11 A Balanced Approach to Routine Board Oversight
Financial Statements Force the Board to Become Detectives
Words, Not Numbers
Focus on the Goals and Not Just the Money |
39
39
44
47 |
| 12 Separating Out the Issues from the Numbers in Your Budget Reports |
48 |
13 Four Priorities for Regular Board Discussion
Cash versus Accrual Accounting |
52
53 |
| 14 Review the Basics Once a Year |
56 |
| Section IV: Sustaining Mission through Adversity |
59 |
15 Capitalize on Good Financial Times
Structural Balance and Leaning Against the Wind
Six Tools to Sustain Mission During Downturns
A Cautionary Note about Endowments |
60
60
62
66 |
16 Cutting Back Strategically
Sustainability of Mission Is Your Decision-Making Crucible
Community Need and the Decision to Continue
|
69
69
70 |
| 17 Cutting Back When You Have to Move Quickly |
72 |
| Section V: Communication |
79 |
18 Communicating to Your Constituencies
Donors
Staff
Clients and Patrons
The Media
The Internal Revenue Service
The Outside Auditor |
80
81
82
83
84
85
86 |
19 The Benefits of a Culture of Supportive Inquiry and Openness
Where to Start |
90
91 |
| Glossary |
93 |
| Selected References |
98 |
