Hello 2019! With a new year comes a fresh start – an opportunity to set financial and organizational goals. What’s better than starting with a clean slate?  For next year, I encourage YOU, a change-making social impact leader to focus on financial sustainability.
 
Think about it from another perspective. Your benefactors are supporting your mission today, and in their eyes, to infinity and beyond. It’s vital to leverage every single dollar your organization brings in and become true stewards of the resources you already have. A monumental task? Yes, it is! Highly detail oriented? You better be! A long-term outlook? Time to adopt one! In the spirit of supporting your sustainability, here are 5 New Year’s resolutions for leaders of sustainable organizations:

• Start Utilizing Financial Dashboards: We Use Them!
  • A picture says a thousand words, and so do financial dashboards! Don’t bury your board members in pages and pages of financial statements. Why not used a condensed, visually-appealing, easy-to-read, informational, one-page snapshot of financial data? It’s like an infographic showing your organization’s financial performance and health.  Save time. Initiate data driven decision making. Quickly identify financial problems. Reinforce board oversight. The benefits of financial dashboards are abundant. Check out 10 Common Benefits of Dashboard Reports by BoardSource and tell me you’re not convinced.
• Multi-Year Budgeting is a Must
  • Do you want your organization to be thriving in five years?  Then it’s time to start long-term planning now. Nope, not the typical vague, text-heavy, idealistic strategic plan. We’re talking about an operational plan with benchmarks, metrics, checkpoints, trend analysis, economic forecasting, etc. If your organization receives money from grants, what does the future of grant funding look like? Will you hire a new bookkeeper or other staff member, or outsource some future operations? What decisions will you make this year that will significantly affect your organization over five years?
• Understand the Nonprofit Starvation Cycle & Avoid at All Costs
  • According to the Council of Nonprofits the Nonprofit Starvation Cycle is, “When a nonprofit is always catching up, but never has enough resources to cover its costs AND invest in its own infrastructure.” Does this sound familiar? Do you and your board have recurring, agonizing conversations about becoming a proactive, rather than reactive organization? At Blue Fox, we believe that you can break the cycle with deep financial knowledge that empowers you to truly leverage your resources and create accurate strategic and financial forecasts.  If you’re stuck in this rut, call us to help!
• Let Actionable Financial Data Lead Decision Making
  • Picture this: you’re called into an impromptu brainstorming meeting with your team to discuss a new partnership program. What do you bring? A pen? A pad? What else? Anything?  How about your financial statements? And, maybe your latest program profit and loss statement. At Blue Fox, we deliver actionable financial data to our clients because we believe that the topic of finance is critical to decision making if organizations are to be sustainable in the long-term. 
• Can you say Operating Reserves Policy?
  • Rainy day fund. Emergency fund. Hurricane fund as we say in Florida (ha-ha). Call your operating reserves what you will, but plan for its funding and use too. How much should you allocate per year? Are any of the funds restricted? What constitutes a withdrawal? Answering these questions in advance is a must! If you don’t have an operating reserves policy, round up your team and start writing. Find additional information and samples by Propel Nonprofits.

Our team at Blue Fox provides customized, boutique financial and back office services for social impact organizations. Services range from standard bookkeeping and payroll services, to coaching and consulting, to full-blown virtual CFO services. Our mission is to disrupt the traditional accounting model through technology, innovation, and a radically client-focused approach that truly empowers nonprofits and social enterprises. For more information call (321) 233-3311, email [email protected], and visit www.YourBlueFox.com.
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Author:  Founder & CEO, the Original Blue Fox, Chantal Sheehan, MS, CFP(r)
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Resources:
BoardSource, 10 Common Benefits of Dashboard Reports
National Council of Nonprofits, Nonprofit Sustainability
Propel Nonprofits, Operating Reserves with Nonprofit Policy Examples
Stanford Social Innovation Review, Building Financially Resilient Nonprofits: Lessons From the Field

Just about 10 years ago, I was brought to a dinner party by a good friend. By way of introduction, my friend announced that I was visiting from Vermont where I was in grad school. Someone said, “Grad school in Vermont? With all the hippies up there?” My friend replied, “Yep, she’s a Tree Hugger!”
 
I remember bristling at the time, both because I worried the crowd wouldn’t respond well to the Tree Hugger label, and also because I never really thought of myself that way. (Truth be told, I bristle at pretty much any label applied to people – labels are for food and packages. Not for humans.) But I realized later that being called a Tree Hugger was actually a critical moment for me. From that point on, I started to embrace my innate passion for nature, conservation, ecology, and protection of our natural resources.
 
When I was a little kid, I was outside as much as I could be, especially after we moved from my birthplace of New York to North Carolina (mountains!) and then later to Florida (beach and climbing oak trees!). I was one of those kids who always came home filthy and was sent straight to the bath. I used to run around the woods by our house barefoot, delighting in the feel of grass and earth between my toes. I played outside in the rain constantly and stared out the living room window whenever a thunderstorm put on a lightning show for, in my mind, my own viewing pleasure.
 
My parents brought me up with a keen sense of respect for and love of all that nature has to provide. As I grew up, one of the only clubs at school I joined and actually liked was the Ecology Club. We studied the weather and hosted coastal cleanups around the Tampa Bay area, where I made collecting trash on the beach into a competitive sport.
 
I suppose that deep down it just always made sense to me that we should be the guardians and stewards of our Mother Earth – that if we fail, we will ultimately become extinct, or at the very least, homeless.
 
The fact that so many of my fellow Earth-dwellers simply do not accept their responsibility as caretakers and stewards of the planet drives me absolutely nuts. With all the data and scientific tools we have today, we know – we KNOW – that we are:

• Drowning in our own trash
  • Americans throw away their body weight in garbage every month on average
• Ignoring the effects of climate change and the security risks it poses, never mind the risks to life and property
  • The US Department of Defense has something to say about it, and it’s not good
• Recklessly polluting our water, air, and now (because we can?), space (NASA has to track space waste now!)

 
Needless to say, I continue to be a passionate advocate for the work done by conservation and environmental education organizations around the country, but especially at home here in Florida. As Den Mother at Blue Fox, I proudly support a focus on service to nonprofits and social enterprises that operate in these arenas. From electronic recyclers to conservation organizations to environmental engineers, each of these Blue Fox clients play a critical role in safeguarding and protecting our natural resources. We are honored to serve them and help magnify their impact in a small but meaningful way.
 
If you’re considering making a charitable donation this holiday season, please: send some (or all!) of your dollars to a nonprofit that you trust to make an environmental impact. The global focus on environmental improvements since the first Earth Day in 1970 are impressive! We can accomplish big, great things when we put our political and financial will to work for a cause.
 
I am a Tree Hugger – there’s no denying it. Question is: are you?

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Author:  Founder & CEO, the Original Blue Fox, Chantal Sheehan, MS, CFP(r)
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Company Info: Our team at Blue Fox provides customized, boutique financial and back office services for social impact organizations. Services range from standard bookkeeping and payroll services, to coaching and consulting, to full-blown virtual CFO services. Our mission is to disrupt the traditional accounting model through technology, innovation, and a radically client-focused approach that truly empowers nonprofits and social enterprises. For more information call (321) 233-3311, email [email protected], and visit www.YourBlueFox.com.

​Yesterday, I was wandering the interwebs looking for US-based conferences dedicated to nonprofit finance. Know how many I found? 1. Precisely – 1. Whaaaattt??? That can’t be right! Can it?!
 
In an effort to be charitable (haha – pun intended!) to any conferences I did not find, let’s handicap the wide world web’s results and offer that there could be some conferences out there that didn’t come up in a Google search due to some SEO-related reason. Let’s say there are 10, just for argument’s sake.
 
Now anyone, in any industry, but especially a leader in the social impact space, must know that there are 1000s of conferences every year. Indeed, there are ad nauseum lists online of the Top 10, Top 15, Top 20, even Top 65 nonprofit conferences each year. And yet, only a handful (or 1!) is dedicated to the financial-layperson-cum-nonprofit-leader?!?!
 
Reconcile that with constant hum in the social impact space that chants, “Be sustainable. Earn revenue, don’t just solicit donations. Insure your organization’s future. Be responsible stewards of your donor dollars.”
 
How do those two things line up for you? It’s a paradox, wouldn’t you say?
 
If you are a nonprofit or social enterprise leader, you know the value of a trusted accountant, bookkeeper, or board treasurer. If you’re lucky enough to have one of these magical, numerically gifted unicorns in your life, you know you need to treat them like gold.

That’s because without a good financial manager in place, your organization operates at its own peril. The wheels of the bus take no time to come off if you don’t understand your financials and are blindsided by unforeseen events.
 
So why, oh why, Sweet Universe, are there not more gatherings focused on nonprofit finance and financial leadership?
 
I offer two possible reasons:

1. Sexiness. Money, and talking about money, isn’t sexy. It’s hard. It’s uncomfortable. It’s raw. And if you’re lacking confidence in financial management, it makes you incredibly, painfully vulnerable.
2. Taboo. Money conversations in Western culture are taboo. Many of us are taught to avoid the subject in public as often as we can (it’s in the same category as religion and politics). Take the personal taboos around money and TRIPLE them when it comes to nonprofits and money. Got a cash flow problem? Tell NO ONE. Don’t know how to read your balance sheet? PLAY DUMB and defer to the finance committee chair at board meetings.

 
The ironic thing about our avoidance of finance as a topic is that the avoidance only serves to deepen our dysfunction with money and increase our feelings of incompetence. Nonprofit leaders and social entrepreneurs who fail to build their own capacity in finance are tying their own hands and blindly trusting someone else with “the numbers.”
 
Is that right? Is it healthy? Is it okay? I’m not one to judge. But it’s certainly not functional.
 
Major donors and institutional investors/funders everywhere want to see the impact of their investments. They encourage their grantees to network and learn how to be better leaders, better fundraisers, and better managers.

But, alas, no money, no mission. No money, no leadership needed.
 
Times are flush again for nonprofits. But remember about 10 years ago when they weren’t? Remember when organizations were shuttering and merging at breakneck pace? Remember when every funder didn’t want to be your only funder, and when “social enterprise” and “sustainable revenue streams” first came into nonprofit parlance?

The Great Recession spurred innovation and scrappiness from an already scrappy nonprofit sector. But where are we now? Where is the capacity building grant for financial education? Where is the investment in helping nonprofit leaders become A+ students in finance?
 
Answer: I have no idea.
 
Happily, that’s why I launched Blue Fox. Financial services for nonprofits and socially responsible business leaders and coaching to level up your financial knowledge. It’s all here.
 
You’ve come to the right place…  What we can do for you?

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Author:  Founder & CEO, the Original Blue Fox, Chantal Sheehan, MS, CFP(r)
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Company Info: Our team at Blue Fox provides customized, boutique financial and back office services for social impact organizations. Services range from standard bookkeeping and payroll services, to coaching and consulting, to full-blown virtual CFO services. Our mission is to disrupt the traditional accounting model through technology, innovation, and a radically client-focused approach that truly empowers nonprofits and social enterprises. For more information call (321) 233-3311, email [email protected], and visit www.YourBlueFox.com.

Does the start of audit season fill you with a combination of dread and panic? When your auditor comes for a site visit are you nervous or stressed? Deep down, when it feels like this each and every year, do you say to yourself: there must be a better way?!
 
In theory, an audit is actually an AMAZING tool. (Yes, really.) Audits help management and external stakeholders (like investors and donors) to understand: ​

• Your company’s efficiency, effectiveness, and resilience
• How your company stacks up vis-à-vis compliance and regulatory standards
• Whether or not you are adhering to standard policies and procedures for your industry

 
Ultimately, a clean audit can enhance your organization’s reputation in the community. That’s the goal anyway. Unfortunately for auditors, though, no one loves an audit. An audit is seen as a tedious, often painstaking process. Some nonprofits get audits every year just because it’s mandated by their nonprofit bylaws. It can feel like a mess of wasted time and money. But it doesn’t have to be that way.
 
Here are 5 tips to help you thrive during audit season and get a clean audit! (And we feel pretty good about these because our clients get clean audits every year.)
 
1. Identify the cause of your audit stress
We all internalize judgment and critique of our work in different ways. Whether it’s something as trivial as a Google review or as serious as an audit, there’s no getting around it: when a 3rd party delivers an opinion about your work it can be uncomfortable, especially if it’s not a good one. But if you can figure out the major causes of discomfort, you can work to resolve them for yourself in advance. Studies show that the simple act of naming the causes of stress or anxiety actually lowers stress levels all by itself. So figure out what it is that freaks you out about your audit, examine it, and start to consider how you can resolve it in the future.

2. Stay as organized as possible throughout the year
Organization and preparation are key to a clean audit. If your desk looks like a tornado and your file cabinets are a mess, yes, of course audits will be a challenge. But basic, common sense record-keeping is essentially the foundation of a clean audit. These days, virtual financial record-keeping is easier than ever. With apps like QuickBooks Online and Bill.com, your office can even become paperless when it comes to accounting records. Ask us if you’d like a recommendation on the tools that’ll work best for you.

3. Be transparent
Kudos to auditors everywhere: they can smell BS a mile away. We’re not kidding. It’s like their superpower. So listen up: you’re a good person. Your auditor is a good person. (Probably. Deep down anyway.) Don’t make them sniff out something you did wrong. If you goofed, or your staff goofed, just be up front about it. If you know something is amiss, chances are so will they. It will feel better to own it than to try to escape it. So turn it into a learning moment: “Look, Audrey the Auditor, I think we messed up our accounting for this event. I wanted to let you know in advance and ask if you have any advice or suggestions so that it doesn’t happen again.” Transparency and honesty are essential to a clean audit, and a good relationship with your auditor.

4. Follow up with your auditor for more feedback
So, you pay your auditor a boatload of money each year and they spit out this report that your board reviews for, say, 10 minutes. Is that a win? Not in our book. So how about leveraging the knowledge and wisdom locked up deep inside Audrey the Auditor? Why not ask her questions, both in the middle of the audit and after it’s done? Good questions might be: 

• Are we doing XYZ correctly, or would you prefer to see the information another way next year?
• What policies and procedures are we missing? What’s best practice for our industry?
• What else can I do to prepare financials that meet the current standard?

 
The auditor will be THRILLED that you asked and that you care, and will probably give you some mental bonus points just for taking such initiative. And questions will spark dialogue between you and the audit team, ensuring that you get the most bang for your buck all the way around.

5. Ask for help
If you feel like you could use some extra help with your nonprofit accounting workflow, or that you just can’t get organized for your annual audit without help, it might be time to begin outsourcing some of your financial functions. Ask your auditor what they think about that. Or just call us and talk it over. We won’t pitch you; we’re here to be a resource. So reach out at any time.
 
A clean audit is possible. We see it all the time! Contact us if you want help preparing for your next audit. We’re here for you!

Author:  Founder & CEO, the Original Blue Fox, Chantal Sheehan, MS, CFP(r)
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Company Info: Our team at Blue Fox provides customized, boutique financial and back office services for social impact organizations. Services range from standard bookkeeping and payroll services, to coaching and consulting, to full-blown virtual CFO services. Our mission is to disrupt the traditional accounting model through technology, innovation, and a radically client-focused approach that truly empowers nonprofits and social enterprises. For more information call (321) 233-3311, email [email protected], and visit www.YourBlueFox.com.