Submitted by CarlyMeyer on

Brain Check

Categories
Lifestyle

Recently, I was asked to sit on the board of a non-profit in Center City Philadelphia. Anticipation was plentiful. I was thrilled at the opportunity to learn more and help solve a few issues during my term. The board room was full of eager people. 12 overacheivers sharpening their proverbial pencils. With introductions complete, the first question posed to me at the meeting was "Carly, would you like to host a party for all of our donars that contribute at the $5,000 mark or higher in the spring?" "The purpose of the party is to fundraise for the organization. The headcount should be somewhere between 80 and 100 people."  Wow! BOLD ASK. My jaw dropped. I graciously replied I would give it reasonable consideration and would let them know at the next meeting. Carly-on-the-spot? Really? Pressure much?#firstmeeting.

Without hesitation, I asked to review the financials. It was an easy decision for me. "NO." I believe this organization needed a long term and short term plan. How about a business plan? Pronto! Contributing financially was not in the cards until the budget was reviewed, approved and done a second time. Out of control spending and no real development plan. Meanwhile, another individual embraced the request and did a centerfold in a high society magazine, highlighting the organization. I was shocked. I proceeded to ask a couple of trusted advisors why someone would check their financial brain at the door. The money bucket wore a giant hole at the bottom. Sustainability was not in the cards.

The display of the human ego was evident in the individual. Do our principals for life get checked at the door when making decisions? Do we make decisions with our heart or our head? Are financial deicisions the same for everyone? What is your relationship with money? Do we play the hero? Enabling bad behavior? Encouraging bad financial habits for short term success? Turn a blind eye?

Enlighten me, Gotham.

Comments

Daniel Schwartz

Enabling bad behaviors is against my beliefs. I applaud your stance. I think of myself as a long term visionary. It is the Gotham way in my opinion.
Corey Bearak

I like charities where I know they serve folks well. $400-$500k is a lot of $ to collect without a clear sense of spending and a budget. "Slush Fund?"
Fred Klein

As a rule my father always said no at first...

Submitted by Liz_Saldana on Wed, 12/18/2019 - 20:30

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Liz Saldana

I once accepted a position as the Executive Director of a non-profit. I was excited about the step up in my career and the challenges ahead of me. Though I did some research before joining, I should have done more. Shortly after joining, I went through the financials in detail and found the organization was being run irresponsibly (to put it nicely). As neither the board nor the president were willing make appropriate changes, I left the organization. It was the right thing to do.
Shelley Simpson

Clearly your decision to sit on the board was to benefit the organization. That informed your response and is not the case for everyone. Many are in it for their own benefit. Keep in mind that not everyone who has money got that way because of good habits or a positive money mindset. As has been said by many, how we do anything is how we do everything. That holds true with how people are with money.
Kelly Welles

If they want you bad enough, they will share their financials BEFORE you accept. Over time, I have asked for by-laws and finwncials in advance. One should not risk their hard-won reputation and relationships to compensate mismanagement.Moreover, being a financial expert requires this due diligence. Brava!
Rona Gura

I review financial documents all the time. It never ceases to amaze me how poorly people manage money, no matter their education or income levels.

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