Introduction
Non-profit organizations are among the most prominent social unit worldwide. They are the social institutions of the modern era with high moral and intellectual value, possibly the only outstanding and helpful social institute. They also carry burdens in the areas of health care, child care, protection of privacy, and education of all individual in diverse nations (Anthony & David, 1994). They carry out their financial stewardship obligation through the inclusion of all people irrespective of age, race, and disability.
Cash Flow
Angel of Hope as a non-profit organization controls vast resources across national borders, and affects every human life. However, the financial stewardship obligation of Angel of Hope’s leadership team is a primary consideration for all non-profit institutions.
Some managers have said that, after work, money is the most time consuming aspect of organizational life. The approach to money matters at Angel of Hope is straightforward and understanding. This approach is through managing the organization’s cash flow, learning how to connect the societal gaps or deal with excesses successfully, and working to make all the resources in the organization’s world flow more efficiently.
This approach is a one-line prescription for administrators, board members, donors, consultants, and others with an interest in the financial health and welfare of Angel of Hope.
The organization receives taxable gifts and grants to be used for social amenities for which the organization’s vision, mission and objectives were instituted. However, because it has no interest, it never carries out its financial obligations as investors and often pays little, or nothing, in federal taxes (either state or local) internationally. Therefore, the financial cycle of Angel of Hope is only about cash flow (financial gain and disbursements). It is these characteristics that make the institution’s perception of cash flow to an extent relevant to accepting they way it works.
The degree for strategic thinking for leaders in the organization can be set by budgeting, prediction in advance and monitoring of the Cash flow, mainly in the areas of their responsibilities both in the regulatory and the public insight point of view.
Understanding how the organization performs at the moment, and its expected operation in the subsequent years, are deeply fixed in the perceptive of the cash flow. A continuous record when grants are received and leave the organization’s treasuries is essential to guarantee health and strength of the organization.
As part of the obligation of the leadership team of Angel of Hope, it is possible to communicate unmistakably with donors and organizations that will present gifts and funds they require. Currently, the organizations methods for budgeting that will enthusiastically make its financial game plan brighter and clearer.
This cash flow thinking helps leaders of organization scrutinize their economic plan in an innovative and different method. This process is implemented by means of cash as a main financial record.
Financial Stewardship Obligations
Consequently, financial stewardship obligations of the organization’s leadership have the greatest familiarity with the complexity of the organization’s internal operations, environment, and growth opportunities (Blazek, 1996). As Herman and Heimovics put it, the leadership team has executive centrality.
The leadership team has easier access to information on how well the organization is functioning, has greater expertise related to the organization’s mission, and repeatedly represents the public view of the organization; and thus the burden of responsibility for the organization’s success and shortcomings (Herman & Heimovics, 1991).
The basic obligations of the financial stewardship leadership team of Angel of Hope can be grouped as:
- Commit to the mission of the organization
- Guide members of staff and control the organization
- Implementation of responsible financial stewardship
- Conduct and plan how to raise more money for the organization
- Ensuring liability, and comply with law as they follow the highest degree of ethical standards
- Establish affiliations, and advocate to the organization.
- Controls the worth and success of programs
- Give moral or psychological support to the board.
Communicating Obligations of Leaders to Stakeholders
To communicate these obligations to relevant stakeholders, a generic list of the leadership obligations which are applicable to Angel of Hope leadership team can be drawn from James Kouzes and Barry Posner’s framework (James & Posner, 2010). These authors argue that successful leaders need to engage in the following five key leadership activities.
Leaders should have an end picture in their mind and share it to enlist others to realize their vision.
Conclusion
Angels of Hope leadership team responsibilities include management as well as leadership tasks. It is their task to ensure that the organization carries out its obligations in an efficient and a well-organized way. It is the task of the leadership team to decide what the work should be and to motivate others to pursue the vision that drives the work.
The leadership team focuses on change by setting direction and vision. Furthermore, they plan to produce results. They organize staff, structure jobs and reporting relationships to implement plans; besides, they control, solve the problem, and correct deviations from the organization’s plan. In other words, it is a leadership task to develop a shared plan, and a management task to coordinate its implementation.
Reference List
Anthony, R. N., & David, W. Y. (1994). Management Control in Not-for-profit Organizations. Boston, MA: Irwin, Inc.
Blazek, J. (1996). Financial Planning for Not-for-profit Organizations. New York, NY: John Wiley & Sons, Inc.
Herman, R. D., & Heimovics, R. (1991). Executive leadership in nonprofit organizations: new strategies for shaping the executive-board dynamics. San Francisco, CA: Jossey-Bass.
James, K., & Barry, P. (2010). The Leadership Challenge Practice Book. San Francisco, CA: John Wiley & Sons.