Money makes the world go round, or so the expression goes. But chances are it’s not an expression that rings true to you and people working in a non-profit or a public-sector agency dedicated to creating positive social change. My guess is a human connection and finding a deeper meaning beyond yourself makes the world go round for you. Fighting for causes you care about is what rotates the earth on its axis or at least moves you on your own personal axis. I know it does for me. While money doesn’t make my world go round, I do know the world in which I want to live can’t exist without money. And, to get that money, its importance needs to be acknowledged. Yet, too often, I see money ignored in many social impact organizations until those organizations face financial crises.
I’ve worked in tiny nonprofits with a handful of staff working out of one room to large multilateral organizations with thousands of employees in every country and a budget in the billions. While these organizations differ in almost every aspect, they share the same view: money is the job of the finance people, the fundraisers, and the Executive Director. The rest of the staff? Don’t distract them with money talk because they have more important things to do.
That’s a fine attitude to have if in the Venn diagram of public service programs the circle for money never touches any of the others. If all staff are funded by stable, long-term, flexible funding with no reporting requirements and no threats of budget cuts, and if staff never have to interact with funders, then yes, you or your employees should let those people who have finance in their job description focus on managing the funding. But those organizations are few and far between.
In reality, budgets are never secure for more than a few years – if you’re so lucky. Multiple grants fund staff who have to breakdown their hours according to donor requirements. Most employees at some point will have to report their deliverables. Most importantly, where we spend our time, energy, and money should reflect the priorities of the organization; the work plans should reflect those priorities, too.
I’m not saying every staff member is supposed to become an accountant, a professional fundraiser, or the Chief Financial Officer. What I am saying is that being mindful about funding sources should be socialized within the organization — ideally when the organization is not in crisis mode. Because when money is tight, everyone will have a strong opinion on where to spend existing funds. (The answer you’ll most likely hear universally is, “Let’s spend on the program I’m working on right now.”) But fruitful and productive conversations rarely come out of times when we’re trying to just survive.
So, here are the questions every staff member should be able to answer:
- What is our budget?
- Do we have the money we need to support current levels of work?
- If the answer is yes, are we comfortable at this funding level or are we seeking to expand our budget and programs?
- If the answer is no, how likely will we fill the gap? If we can’t secure funding, what will we fund and what will we pause until more money comes in?
- What are our financial priorities?
- What role do I play?
- Is my work aligned with what I’m funded to do?
- Am I required to report on work to donors?
- How am I representing my work to donors and potential donors?
- Am I meeting deliverables promised to donors?
- How do my expenses fit into the budget?
Can you answer those questions? Can your colleagues and employees answer them? If you or they can’t, then it’s time to start planning meetings to start discussing these topics because while the earth will continue to go round with or without money, your work won’t.
Well said, Elesha. The importance of a sense of shared responsibility for stable financing and happy funders cannot be overstated.
Congrats on the new endeavor!
Great forward thinking Elesha!!