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Showing posts with the label nonprofit finance

What Would You Do With a $$ Windfall?

RECEIVING A SUM OF MONEY UNEXPECTEDLY (or half-expectedly) isn't as unusual as it may seem in the nonprofit world. It often comes in the form of a bequest, but it might just as often come as a year-end gift from a loyal member.  Sometimes, it's a grant few thought the organization would ever be competitive enough to get.  Or a local corporation or government acknowledges the efforts of a nonprofit that is making the community a better place. The question that gets some organizations tied up in knots is how to make the best and most efficient use of these funds.  We all dream about how we'd put a few thousand bucks to use if it were to arrive on our doorsteps, but when actually faced with a check in one's hands, the dreams may be...well... too dreamy.  Where should it go, if the donor hasn't stipulated a place for it to land? The director of a small cultural nonprofit asked me this question.  After several years of increased attendance and program income,...

Emergency or Poor Planning?

I'M A NEW BOARD MEMBER.  I figured after all these years of working with and for boards, and writing about them, too, it might be useful to experience nonprofit life from the other side of the table.  In five short months, the pressures of the duties of care, loyalty and obedience have firmly taken hold.    At a recent board meeting, staff members presented two unbudgeted funding requests for approval.  Both were completely out-of-the-blue, so far as I could tell -- at least I wasn't aware of them.  Just minutes earlier, the board had reviewed and approved the year-to-date operating statement, which already contains an vague amount "to be raised" to cover capital projects beyond normal maintenance.  Acknowledging that these proposals were outside of the approved budget, the staff pressed their cases for the urgency of the two expenditures. Many board members -- myself included -- sat in disbelief that they were being asked to find $50K out of ...

A Scalable Recipe for Getting Out of Financial Trouble

THE ARTICLE I JUST READ ABOUT THE COLUMBUS SYMPHONY ending its season just a hair's breath in the black is cause for celebration in many ways.  As symphonies across the country struggle, merge or outright die, the Columbus Symphony turnaround is worth taking a look at.  What was the secret from going from a projected deficit of more than $1 million to a surplus of $200,000?  Were there lessons for the rest of us embedded in the experience? In a nutshell, here's what symphony leadership did: secured major corporate/foundation support, admittedly much of that was already in the pipeline, but the lesson here is that you don't give up on fundraising in a tough economy, you work the hell out of it secured municipal support -- a tough sell right now, but one likely built on strong economic arguments.  Do you know how much your cultural organization contributes to your local economy? If not, you're overdue in pulling that information together. musicians are now in their...