Mosque Board Financial Literacy Matters

FINANCE

Mosque Board Financial Literacy Matters Overcoming one’s fears of numbers

BY SADIA QURESHI

An often-overlooked aspect of Islamic centers’ governance is their board members’ financial literacy. While highly skilled in their own areas of expertise, many of them often lack relevant training and experience in this regard. In addition, their meetings and interactions focus more on discussing program accomplishments or legal matters.

However, the mosque’s management must help these individuals embrace and understand financial data. Achieving this goal, with some creativity and perseverance, can add tremendous value to achieving Islamic centers and nonprofits’ missions. WHY ARE PEOPLE INTIMIDATED BY NUMBERS? Let’s admit it: Numbers are rare in meetings or discussions (“unfamiliar”); financial numbers and spreadsheets are simply dry, somewhat boring and cause anxiety; require you to pay serious attention (“disruptive”); and mean that a learning curve is right in your face. So, your immediate response is an entitlement to self-exemption because if it’s never been your “thing” or natural aptitude.

Numbers also mean a lot of responsibility, because a small error can cause great harm. And thus, the common attitude is “Since I didn’t engage with financials, I’m not responsible.” But one should be aware of just how costly this attitude might be. For example, the famous 2018 case of Missing Oxford Comma where Portland, Me., dairy delivery-truck drivers won $5 million from their employer for years of unpaid overtime wages, all because of how commas were used in state legislation governing overtime payments. Also, in 1872, the United States Tariff Act, as originally drafted in 1870, included an unwanted comma that cost taxpayers nearly $2 million (the equivalent of $40 million plus today). In addition, numbers require transparency and accountability, especially with reconciliations, which means “a lot of extra high responsibility work” and are seen as a “specialty” — someone else’s job. “That’s why we hired an accountant. Why should I spend time on something I’m not responsible for?” The ensuing stress and anxiety cause people to avoid numbers. Lack of support from those who understand financials just increases the problem. However, both of these issues can be resolved by intentionally creating a culture in which they are a normal part of regular board meetings or interactions, phone discussions, program reviews and goal setting. IMPROVING THE BOARD’S FINANCIAL LITERACY ➤ Offer financial literacy workshops to all members. These trainings may include,

THE ENSUING STRESS AND among others, financial planning, budget-

ANXIETY CAUSE PEOPLE TO ing, investing, understanding and reviewing financial statements, financial inter-

AVOID NUMBERS. LACK OF nal controls, financial reporting, budget SUPPORT FROM THOSE WHO reconciliations and how to spot errors or discrepancies. As hiring professional train-

UNDERSTAND FINANCIALS ers can be costly, collaborating with other

JUST INCREASES THE Islamic organizations for subject matter experts or willing volunteers can help save

PROBLEM. HOWEVER, BOTH funds. In exchange, you may offer some

OF THESE ISSUES CAN BE type of cross training in your organization’s RESOLVED BY INTENTIONALLY area of expertise. You can also periodically screen and share free online resources for

CREATING A CULTURE IN your board and staff. WHICH THEY ARE A NORMAL Help the board understand the importance of investing excess funds and cash

PART OF REGULAR BOARD savings to protect the institution from MEETINGS OR INTERACTIONS, inflation and the impact of donor fatigue or lapse. For example, the North American

PHONE DISCUSSIONS, Islamic Trust (NAIT; info@nait.net) offers

PROGRAM REVIEWS AND “free” customized financial literacyworkGOAL SETTING. shops. With their expertise in finance and investing, they can also help with your mosque’s halal investing and sustainable fund development goals.