Fall 2013 Issue of Horizons

Leadership A third key component of sustainability is leadership. This encompasses a variety of types of leadership including day-to-day, volunteers, and resource management. Staff and boards have had to work together – closer than ever – to ensure vision and expected outcomes are in alignment while adapting to a shifting economy. Additionally, it is now imperative that all board members have an understanding of the organization’s finances. The finance and/or audit committees still play important roles in the financial area; however, all board members need some level of understanding of the organization’s revenue streams, expenses, and financial position. This is accomplished by periodic (monthly or quarterly) reviews of the not-for- profit’s statement of activities (revenues and expenses – budget vs. actual) and the statement of financial position. Too often, the focus has strictly been on comparisons of revenues and expenses to budget. Equally important is knowledge

of the entity’s financial position – its assets, liabilities, and net assets, including any restrictions thereon. Economic conditions have also driven organizations to analyze how resources are being utilized. In addition to keeping an eye on cash flows, not-for-profits have evaluated their use of buildings, vehicles and other fixed assets. Depending on the organization, considerations have ranged from how to fund needed major improvements to what to do with excess building capacity after terminating a program for which funding dried up to buying vs. leasing. All are important decisions in a changing economy to ensure optimal utilization of these significant organizational assets. To weather past as well as future challenges, organizations must continue to focus on their sustainability, emphasizing financial strength, mission clarity and leadership in these efforts.

RubinBrown’s Not-For-Profit Services Group As a recognized leader in the not-for-profit sector, we have the resources essential to serve arts and cultural organizations, foundations, private schools, religious organizations, social service agencies, trade and membership associations and other not-for-profit organizations.

Judy Murphy, CPA – St. Louis Partner-In-Charge Not-For-Profit Services Group 314.290.3496 judy.murphy@rubinbrown.com

Sharon Latimer, CPA – Kansas City Partner Not-For-Profit Services Group 913.499.4407 sharon.latimer@rubinbrown.com

Amy Altholz, CPA – St. Louis Vice Chair Not-For-Profit Services Group 314.290.3369 amy.altholz@rubinbrown.com

Evelyn Law, CPA – Denver Partner Not-For-Profit Services Group 303.952.1245 evelyn.law@rubinbrown.com

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