New program? No problem!

A non-profit executive director has the strategic plan in mind pretty much all the time. As planned programs and services run throughout the year, the ED, usually in partnership with the staff team, will keep a keen eye out for potential additions. These opportunities are the ideas that were not included in the original operations plan but have emerged as new and exciting potential programs.

New programs are exciting.

Being able to turn around a new program with little notice can be very exciting. Most executive directors can reconfigure their budget to embrace a great new idea, but many are not set-up for making budget changes without board approval. Waiting for the next board meeting can often cause a delay that makes it too late to offer a new program. The delay for approval along with the missed opportunity can be a very frustrating experience for an executive director and team.

I’m not a fan of having a governance board involved in approval of the operations budget, but the reality is there are many reasons why this still happens. It might be the requirement of a major funder. It might be a bad case of ‘we’ve always done it that way.’ It might be a non-profit that is new to having a paid employee team and hasn’t made the transition. Whatever the reason, a simple policy can make it easier for an executive director to make big budget changes throughout the year.

The board empowers, not hinders, the executive director.

An executive director can ask the board to approve a policy that states once the operations budget and budget categories have been approved, the board gives the ED the authority to adjust the budget, throughout the year, as needed, without requiring additional board approval.

This removes the need for the ED to seek approval for changes to the budget from small shifts to big new directions. It also removes that pause, when an ED wonders if a new program is worth the hassle it takes to get board approval. Ultimately, it empowers the ED to embrace emerging opportunities quickly.

Embrace new ideas.

Non-profits that require their executive director to seek approval for day-to-day budget changes run the risk of grinding operations to a full stop. Executive directors will be less likely to embrace exciting new program opportunities if they are forced to wait a month or more for the next board meeting and then answer a thousand questions about a decision that should really be operational.

The board of directors might feel unsure about authorizing their executive director to make operational budget changes, as needed throughout the year, but the practice is not about blind trust and is usually low risk. A non-profit will very likely already have a full suite of other policies in place to prevent, for example, suddenly increasing staff wages or working outside of strategic priority areas. When set-up with a full suite of executive limitations, the organization will be well protected.

When an executive director has the freedom to make operational budget changes, without seeking board approval for every little nuance, there are three major benefits.

• First, the ED will have the ability to respond quickly when the team brings an exciting new program idea to the table mid-year. This is a great way for a non-profit to stay very responsive to the needs of clients.
• Second, the ED will be able to shift funding around within planned programs, moving little extras from underspent programs to programs that need a little bit more budget room. This helps the organization stretch funding dollars as far as possible.
• Finally, the ED will feel supported by the board in the work to achieve the strategic priorities. That empowerment is a very high-level positive step in the board-ED relationship.

Your turn.

Your turn. When you need to make a budget change, are you forced to seek board approval? Can you move funds around within the budget as part of your job or are you required to bring the board into operational matters? I want to know! Please use the form on the side of the page to let me know, ..or send me an email, ..or message me on socials.

-Christie

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Hi, I'm Christie. I help executive directors develop the systems and processes needed to run a non-profit.

I learned early in my career, there is no non-profit school. Browsing the internet for resources from big-city experts doesn’t provide practical solutions to balance the budget, write a work plan, or conduct an employee evaluation. Leadership development tips don’t really resonate when you are also taking out the recycling and cleaning the washroom.

I created ChristieSaas.com so non-profit leaders never need to wonder how to do the job – no matter how big or small that job is.

I have been the executive director of small-team, small-budget, non-profits for 20+ years. My experience isn’t theory. It is the real, operational, and practical solutions I use every day.

I love my work and I want to help you love yours too.

© Christie Saas 2024 All Rights Reserved

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