What is Old is New Again...

There is an important distinction between financial management and financial leadership. The executive director is responsible for developing and maintaining a business model that produces mission impact and sustained financial health. These tips from The Executive Director’s Guide to Financial Leadership in the Nonprofit Quarterly – updated in 2019 – offer a summary of eight key business principles that should guide financial leadership practice:

  • Activate Your Annual Budget
  • Income Diversification… or Not
  • Make Cash Flow Your Priority
  • Don’t Wish for Reserves – Plan Them
  • Rethink Restricted Funding
  • Staff Your Finance Function
  • Help Your Board to Help You
  • Manage the Right Risks

These principles are relevant as both longstanding practices and emerging trends for nonprofits. The principles will help executive directors adapt to the demands of the changing environment and maintain the balance needed for mission impact and sustained financial health.

Find the article here.