Tag Archives: money

DonorTools.com

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donor toolsDonorTools.com has been an incredible find within the last year. I use this tool personally managing donations, empowering volunteers and engaging donors. I recommend it for anyone leading a non-profit organization. Finding simple, powerful and clean software tools that are priced right is hard to come by. Add to it that it is specifically geared for the non-profit sector. Incredible. Ryan & Chris are personable and responsive. Check it out for yourself… share it with others. (This is not a paid advertisement; this product is just that good and so are the people.)

$tart with the small things (2)

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continuation of financial thoughts for young leaders who are steering clear of this area because the want to focus on ‘their specialty’.

  • make a budget (or find out what it is) for your area
    • start watching it weekly for 2 months, then bi-weekly for 4 months then move to monthly as you are ready and have a handle on things
    • if your budget worksheets from the accounting dept. are too complicated, consider making your own excel spreadsheet to keep track of things.
  • set a goal for a speicifc program or line item that is audacious then work your butt off to hit it.
    • it might be a sales goal, a savings/under budget goal or change of procedure
  • take leadership of the bottom line
    • as you watch the budget more closely you will begin to see things that didn’t stand out to you before (waste, over spending, un-needed expense lines, low revenue numbers, etc.). rather than letting them be money in and money out, take control — make a positive change for the betterment of your organization.
  • take it personally as a reflection of your leadership
    • in most leadership environments (i am not familiar with government work) how you manage the bottom line is the most direct measure of your leadership. you will not be given more responsibility if you can not manage money. there are very few places where you can climb in leadership and not have to savvey and sound with the dollar.
  • read regularly
    • your reading list should include 2-4 books annually on some aspect of money and you should be learning the importance of investing  PLUS the markets.

$tart with the small things (1)

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Continuing on with money and leadership for those young leaders out there that are currently avoiding this area. Following the next few posts will be few places will give you some action steps for growth in this area —

budget overview – chances are, if you don’t understand financial planning or accounting, then you neglect the budget overview that finance/accounting leader prepares for you every month. You might throw it in the trash or you count on someone else to explain to you where accounts stand and if you have anything to be worried about. What is critical is that you don’t understand the report yourself and what is more critical is that it is a symptom that you don’t understand how to lead in this area and that you are taking responsibility here.

ACTION = it is time for you to educate yourself. Make an appointment and sit with the lead money man/women of your organization. Ask him/her to explain things to you - go line by line - get the whole picture and don’t quit until you understand how to read and comprehend the thing yourself. You don’t need to understand the whole organization, buut you need to understand every figure that relates to your world of responsibilities. When you were a kid, mom and dad did that stuff for you. As a leader, you need to get engage in this stuff and get going with your education here.

I lost $11,000 and got to keep my job.

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 It is true! I am not sure that many people get to say all of those things. They may get to say that they lost $11,000 on a venture and LOST their job.

 

The financial leader of our organization at the time called me into his office (of course he shut the door) and asked me how it happened. After we talked and I learned where I had gone off course, I had to ask him what the consequences were going to be. He looked at me and said, “well, we just made an $11,000 investment in your education, I am hoping that this will be a worthwhile expenditure on our behalf and that we won’t ever be having this conversation again”. And with that, I went back to my office to continue to do my work. But I went back with a new resolve to never be in that situation again.

 

Some people are good with money and some people aren’t. But if you are a leader, you are without excuse for taking responsibility for the financial situation of your group, your business, your ministry or your non-profit.

 

Here are things leaders do:

  • Educate yourself. Just be cause it doesn’t come naturally to you, it doesn’t mean that you can’t learn the basics. It bothers me tremendously when young leaders chalk this area up as “something they aren’t good at” then don’t bother to understand anything else from that point on. That just won’t do if you are going to be a leader.
  • Find a financial leader with experience beyond where you are and one whom you can trust – then let them lead you in these areas. You don’t have to hire them full-time; find a CPA who is a leader, not just a tax form filler.
  • Realize that something CAN be done about where the organization is currently standing
    • Control spending
    • Manage cash flow
      • who can spend?
      • how much they can spend?
      • when they can spend?
      • budget
    • Improve forecasting by recording the present in more detail
    • Take leadership on the income line
      • If you work at a non-profit you MUST learn to ask for donations/gifts
      • If you work at a business you MUST be concerned with new revenue streams