FINANCE ➤ Help them understand the center’s operational and financial model. Elected and selected board members often have little or no prior background in mosque or nonprofit operations, which makes digesting financials even harder. Once they fully understand the model and what’s important to monitor, they will more likely grasp and understand the financial data’s “whys and hows.” ➤ Attach a bit of financial accountability to each member’s role. This will help them care and learn. Keep discussions on programs, people or impact connected with finances; they are not separate. Helping them learn why certain numbers matter in measuring their department or committee’s progress toward the stated goals will motivate them to track specific numbers in relation to the organization. For example, what number should board members leading a youth committee care about if they want specific outcomes for their program, or a zakat committee lead care about if he or she aims to support X number of people, programs or communities? This skill will also help them refrain from making program decisions that may impact the center’s overall financial health. ➤ Share financial information timely and in an easy-to-digest manner. Keep it brief yet comprehensive enough to be meaningful and reflect the vision. Avoid too much specialized jargon and terminology. For example, the commonly used term “accounts receivable” can be hard to understand. And so they may feel too embarrassed to ask what it means. If using jargon is necessary, provide its definition. Otherwise, use simple layperson language and put the term in parenthesis. Also, use images, colors, simple charts, symbolic figures, shapes and maybe words instead of actual numbers, where possible, to make financial reports look less intimidating. ➤ Share financial insights regularly in meetings. Not only does this make financial matters more familiar, but it also helps build mutual trust and transparency between the board and management/staff. Invite the accountant or finance person to meetings so board members can talk with them directly. The more the board sees and hears about numbers, the more they will begin to feel at ease when dealing 54
with them. Their questions will reveal in which financial areas they need further training and education. ➤ Create a financial dashboard. This will help them track certain indicators for the organization’s overall financial health and program performance. For example, color-code certain areas, such as red (negative performance — too much expense), orange (on track but needs monitoring and attention — a little slip could be costly) and green (keep up the good work, well within budget + revenue). Consider using the specific donor management software or client management tools used by some nonprofits, such as Salesforce, that automatically creates custom dashboards. ➤ Engage board members in the budgeting process. This may seem difficult and time consuming, but not doing so will likely cause these individuals to be less invested in meaningfully enforcing or monitoring those budgets. ➤ Engage them in defining financial internal controls. Although they won’t be the ones actually practicing the controls, participating in policy development will help them understand the financial processes and procedures if they are assigned a role in the policy or in other areas that involve financial risk management and monitoring. ➤ Meet in person to review financial information. Personal meetings are far more effective than just emailing intimidating, dry and stress-causing spreadsheets. Such encounters will help board members retain and make better sense of the data. Sometimes, an easier process also helps make hard things seem easier. ➤ Adopt a whistleblower policy. Doing so will help board members understand the steps and procedures in the case of a financial breach or fraud. ➤ Implement the tips consistently. Understandably, making busy board members interested in financials is a bit challenging. But incorporating two tips at a time and implementing them consistently will significantly help members improve their financial literacy and become effective financial stewards for your nonprofit’s success. ih Sadia Qureshi is a communications consultant for nonprofit organizations. [Editor’s note: Copyedited and published with permission from the North American Islamic Trust, Inc.©]
ISLAMIC HORIZONS MARCH/APRIL 2022
Requesting a Ha from Your Emplo
How to lobby your company fo meets Islamic guidelines BY AMAL OMER
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s we all know, purity is a key aspect of our Islamic faith. This is not just limited to the foods we consume or personal hygiene. Purity also extends to our earnings, the source of our income, and how we invest. Financial institutions like Azzad Asset Management and Saturna Capital offer halal investment options that screen out companies that profit from alcohol, tobacco, pornography, gambling, insurance, interest and firearms. This screening also avoids investing in conventional bonds that generate income from interest (riba) and companies with high-debt ratios. For many of us, living in a non-Muslim society requires being diligent to ensure that we consider Islamic guidelines in all aspects of our lives. One area that can often be overlooked is our employer retirement savings plans, such as a 401k or 403b. Typically, these plans offer limited investment options that are not halal, as they invest in the aforementioned companies or bonds. If
