Problem: Board members don’t understand financial reports
7.01.2025
Many board members do not have a degree in finance or extensive experience dealing with complicated budgets. Yet, the entire board should fully understand how the organization is doing financially no matter how large and complicated the nonprofit might be. If the board has a treasurer, one of the main roles of that individual should be to make sure all the board members understand the financial reports. The board can also ask for shorter, easier to understand financial reports. Another helpful technique is to report the finances using key charts or diagrams. For example, all board members can easily grasp a bar chart of cash reserves each year for the previous ten years. Everyone can see immediately if the reserves are growing or declining.
