Theo
Forum Replies Created
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Theo here again. Dan, the question of using the same wages for multiple funding or credit purposes is certainly an important part of this discussion. For nonprofits that received government funding, the treatment of wages can require careful review before claiming the Employee Retention Credit. There were organizations that benefited from the credit, but eligibility and wage allocation can be quite fact-specific. If your auditor has already raised concerns, I would take those concerns seriously and ask them to explain the specific risk in your situation. It may also be worth getting advice from a tax professional who understands nonprofit credits. The potential benefit should always be considered alongside the possibility of repayment, penalties, and additional compliance work.
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Theo here. Joseph, I can see why the board might be confused. They may simply be looking at two different views of the organization’s finances without enough explanation of how the figures relate to one another. My view is that finance reports provide the formal accounting picture, while fundraising reports provide a relationship and development picture. Both can be useful for different purposes. A simple bridge document could help connect the two. One page could show the finance figure, then identify DAF and family foundation gifts separately, followed by the annual fund total. Calling it something like “Fundraising View” could make its purpose clear. Providing it alongside the regular finance pack may make the distinction much easier for the board to follow.
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Making financial information understandable to board members is a surprisingly important skill. Not everyone around the table will be comfortable with accounting terminology, and that is perfectly normal. I think the real goal should be helping members recognise what the numbers are saying about the organisation. Clear dashboards, simple explanations and a few well-chosen questions can go a long way. There is little value in producing a beautiful financial report that nobody understands. Good governance starts when people feel comfortable enough to ask what something actually means.
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I like the emphasis on stewardship here because board finance should be about more than simply checking whether the numbers balance. Board members need enough financial understanding to connect decisions with the organisation’s mission and the people it serves. That also means asking thoughtful questions rather than trying to become accountants overnight. I imagine the discussion around judgement will be particularly valuable, since not every decision fits neatly into a spreadsheet. A good board can bring perspective that finance teams may not always have. That balance between numbers and mission is worth exploring.
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Hello Bradley. It is a difficult situation when a volunteer feels unappreciated, especially when you are already relying on a small group of people. Rather than looking for one person to handle everything, could you consider a fractional CFO or bookkeeping service? They could handle areas such as deposits, reconciliations, and reporting without becoming caught up in internal board dynamics. For the passion side, I would also look at local agricultural colleges or the county extension office. You may find someone who understands finance and already has an interest in the fair.