What does it take to BE financially savvy right now? Especially with continued uncertainty surrounding funding sources and for some, “off the charts” increases in the need for programs and services?

Three things can help you be a financially savvy organization: Monitor, Stay Focused, and Ask Good Questions that lead to action.

What to monitor? Throughout the year but definitely in times of uncertainty some things to take a look at:

1.  Financial track record.
2.  Be aware of changes to income source(s) and cost structures.
3.  Note how diverse & flexible your financial support is or isn’t.
4.  Know pledge redemption history and be prepared for changes.
5.  Note how financially sophisticated the board, staff & donors are.

And for more, last week, colleague Laura Deaton from Third Sector Connector posted a great list titled: 20 Questions That You Should Be Able to Answer At Any Given Time About Your Organization’s Financial Health.

Stay focused on core programs & services. Remind yourselves why you exist in the first place. Then identify any weaknesses in funding for core or peripheral programs. Reach out into your community to shore up collaborations or partnerships if necessary to maintain what is core to your mission. For some groups I’m working with this has been a difficult conversation because state or federal funding cuts are eliminating programs. Now is when it’s critical to have your strategic plan front and center to guide the decisions that may need to be made.

Ask questions. Your organization may or may not have the answers to all the questions you are asking, but asking the right questions is key. Financially savvy organizations know the costs of their programs, where the strengths and weak links are, what the contingency plans are for cost cutting and they share that kind of information with more than just the “insiders.” I’m a fan of sharing the good news and the not so good news with donors, volunteers, board members, staff – virtually anyone who is a stakeholder.

Just a week ago, a CEO I work with, we’ll call him Charlie, shared with me that he was surprised and proud that two of his board members made it a point to ask about the funding gap for the organization. The board members brought up the topic at a recent board meeting, Charlie didn’t. 

What Charlie said is: “we’ve really trained our leadership to be asking questions and aware of what our financial situation is so they can share it with others and help us to raise the dollars we need.” Sounds like a great board to me.

The second part of asking the questions is being able to make decisions and take action when you’ve collected the information. Don’t let the indecision paralyze your organization.

One of my passions is to raise awareness of the “money” conversation that often goes on behind closed doors and doesn’t get shared until it’s too late. I believe talking about finances and fundraising costs & goals allows others to see that you have a place for them when they are ready to give.

Money is one of the most central issues of our life. It was created from our own genius to allow us to share our goods and services with each other. It flows around the planet all day long stopping by to do some good and then moves on to the next person or project.

As social profit organizations are deep into the final quarter of the year, wishing, hoping, or praying to have enough money to end the year, I ask you this question: Have you been talking about money ALL YEAR LONG?

Have you made sure to connect with your donors and volunteers about what they are doing with THEIR money this year? Have you shared what your programs cost per person? Per week or day? Have you helped to shed the stigma about talking about money?

Have you compelled your community to KNOW for certain the impact you are having and why you might need more dollars by year-end?

After giving some advice about the content for a year-end appeal on a client phone call this past week, someone asked: “Is this a new trend to be telling how much our programs cost and what our financial goals are?“ After my stunned pause I said, “It’s just good communication. I’m not sure if that means it’s a trend or not.” 

The question caused me to realize that because talking about money is not in our nature we often keep important compelling information from our donors and volunteers. Why would they want to give us their money if we are not comfortable talking about what it will do to help our organization?

I believe it’s our sacred role as development officers, executive directors, and fundraising professionals AND board members to talk about money and its magic in helping to produce the results of each of our organizations. That includes talking about the costs and our financial goals each year. Not by sharing the boring budget information, but by sharing a compelling story about how MY gift will make a difference.

This is an excerpt from my Sustainable Strategies workshop.

It’s a reminder to talk about money all year-long. And do that in person, on the phone, at meetings, during speeches. Remove some of the stigma and fear about costs and money but making it interesting, compelling and understandable. If you are worried about year-end dollars, make some calls and get connected with key donors. Tell some stories about the impact of your programs and remember to include some information about the incredible value and impact of your programs or services.