Sunday, May 16, 2010

Front page of the Newspaper Test

When management or the board of any non profit makes a decision, they need to consider a number of issues - eg. what will it cost the organisation, what benefits will the organisation receive.

However, another issue needs to be considered when making decisions - how would others view your decision if it made the front page of the newspaper?  Would you lose donations?  Would there be agreement with your decision?  Every decision should be considered to this extent.  Those decision can very from how do you spend funds raised to should you report fraud to the police.

Of course, some non profits are at greater risk of hitting the front page of a newspaper than other non profits (eg. a charity would be a reasonably high risk as a significant portion of funds are publically raised).  However, this one question is a good test of if the decision is in the best interests of the organisation.

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