What the heck should the board’s finance update include?
Here’s what I’d like a finance report to tell me:
Are our revenues and expenses tracking as we expected?
If not, how far off are they and why?
Is there any risk that we might hit a time we can’t pay the bills? What are we going to do about that?
Are we meeting our spending obligations for restricted dollars?
Is restricted income hiding shortfalls in operating income?
Is there any new, unanticipated expense that could throw our budget out of whack? What are we going to do about that?
Where do we expect to be at the end of the year?
What should/could we do today to correct our financial position if the year end isn’t looking so good?
Share this handy IRS pub with your board
Have I mentioned yet how helpful the Internal Revenue Service website can be? They even have a special tab for Charities and Nonprofits, right on the home page.