If you are on a board of directors and you can’t tell me how much money your association has, you need a new management company or your interest in serving has faded. Either way, change is needed and fast. Only you know if it’s the later. So, let’s address that first.
It’s very common for us to encounter boards with fatigued members. Why? Because being on a board, doing the job you came on to do, takes time and energy (and sometimes money).
For a medium size association, there are typically 3 or 4 directors doing all the obvious work. Then, there are several who just come to the meetings and conference calls to lend their advice or votes. But, there are often a couple of directors who are always absent, never download the meeting materials, and frankly, have lost interest in serving. It’s time to invite them off or have a board retraining (energizing) meeting.
Now, if you feel you are a dedicated board member and don’t know what’s in the association’s finances, pick up the phone right now and find out. It is your fiduciary duty to keep watch on membership money. Your staff should be giving you a full P&L and balance sheet monthly. Don’t be shy about asking for the detail as well.
You should know the nonprofit’s financial picture as well as your own personal one. Do you?
