I recently ran across a must-read blog article from a counterpart at an accounting services’ consulting organization on the East Coast. I highly recommend the article, written by Eric Fraint, President of Your Part-time Controller, LLC., to nonprofit board members and Executive Directors. If you visit his blog, be sure to review other articles that discuss the challenges of nonprofit accounting, particularly among small- to mid-size NPOs. His tone is more direct than mine would be, but I have to agree with most of his observations.
Read the article with an open mind, honestly relating the seven functions to your own organization, and see how you rate. Enlightened nonprofit boards and executive directors understand that strong financial management is critical to the success of their mission and long-term sustainability. Those who embrace this will succeed and become stronger. Those who don’t, will struggle in a state of mediocrity until they reach a crisis point leading to their demise, rescue, or major reinvention.point leading to their demise, rescue, or major reinvention.
Lee Bengston, CPA