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Budget Tip #1
Budgeting Your Board’s Effectiveness -or- You Get What You (Don’t) Pay For
by Hildy Gottlieb
Copyright © 2002
 

It’s budget time - time to look at where your organization is AND isn’t spending its money. This is the time of year we at Help 4 NonProfits always wind up scratching our heads in wonder: How can organizations complain so loudly about their boards, and yet budget virtually nothing to train and develop them?

With the Board at the top of the organizational chart, everything your organization is and does flows down from the board - both the good AND the bad. When folks are not educated to do their job, how can we expect them to do it well?

So here are a couple of quiz questions:

Quiz Question #1
Of 100 possible percentage points, would you think it a worthwhile investment to spend even just 1 of those 100 points to strengthen your organization’s governance and leadership?

Answer: We used 1% in this question just to start your thinking - there is no magic number. But most organizations don’t even assign 1 out of 100 possible points to train those who are ultimately responsible and accountable for the organization.

Quiz Question #2
What is 1% of a $1 million budget?

Answer: $10,000. If you are a $1million organization, and you’re not spending $10,000 to train and develop your board, that should tell you just how much of a priority your board really is.

We have a rule we use for our own decision-making here at Help 4 NonProfits. If we decide not to focus our attention on something - whether that “something” is learning a new software program that will save us time and heartache; or sorting and emptying an old file cabinet; or brainstorming to create a new workshop - when we fail to devote our resources and efforts towards those things, WE GIVE UP THE RIGHT TO COMPLAIN THAT IT’S NOT DONE! We figure we’ve made our choice, and we either live with it or decide to re-focus.

So this year, try the Help 4 NonProfits rule as you create your budget. Vow to make 2002-2003 the year your whole organization becomes stronger, by providing training and development for the folks who are ultimately responsible and accountable for the organization’s success or failure. If your board is not enough of a priority to allocate even 1% of your budget to making them better, well you lose the right to complain that they don’t know what they’re doing.

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