With all the electronic devices, websites, apps and social media, your organization’s financial information is only a click away. Do you ever wonder who’s looking at your financial information? Not-for-profits are heavily scrutinized for having too much cash, not having enough cash, declining revenue streams, increasing expenses, management and general expenses being too high, not enough money being spent directly on the program, management’s salary being too high, and the list goes on and on.
There are many watch dog groups out there accessing your information and scrutinizing not-for-profits based on a standard set of criteria and metrics. Is this really a fair way to rate a not-for-profit entity? Aren’t they all unique in their own way? Don’t they need excess cash reserves, just as a for-profit, to be prepared for an unpredictable future and achieve sustainability? Don’t they need well educated, experienced leadership to guide the organization through uncertain times, manage tight cash flows, and grow the organization? And why shouldn’t employees be paid for this leadership and expertise, just as in a for-profit?