A Good Steward of Finances
Are you a good steward? That’s a worthwhile question to consider if you are in a position of trust in your organization,
recognize the value and mandate of stewardship, and want to do everything possible to further your organization’s mission, services, and programs. In fact, the concept of stewardship is as old as creation itself. According to biblical Scriptures, God commanded His human creations, Adam and Eve, to care for the earth and everything in it, in essence requiring them to be good stewards and caretakers of all His creation.
Not surprisingly, the stewardship theme runs through many different faith traditions and beliefs around the
world. These stories and direct instructions point to the need for humans to care for, nurture, and
manage the resources entrusted to them, not just for themselves, but also for the people around them, as well as future generations. Although stewardship is intricately entwined with religious faith, its tenets can be found in the secular world as well. You don’t have to look far to find successful business organizations — from small enterprises to multinational corporations — that understand the value of careful, thoughtful management of their resources, whether those resources are human, financial, physical, or intellectual.
Is this just good business, or is it good stewardship? These companies would claim they are one and the same.
As one example, Frost Bank, where I have spent the last 15 years, is an organization with conservative values, and we believe it is incumbent upon us to be a good steward of all the resources in our care. That belief is so central to who we are as a company that it is codified into our corporate mission statement and philosophy. Every employee, from the top down, understands that stewardship — using our own resources with care to achieve their greatest effect, seeking creative and cost-effective solutions, and avoiding extravagant expenses while taking every measure to protect and secure our clients’ valuable financial and information resources — is everyone’s job every day. Although the concept of stewardship encompasses the use and management of many different kinds of resources, my professional experience and expertise has primarily focused on the stewardship of assets and financial resources. Much of my career has been spent helping organizations in the nonprofit arena make the most of financial opportunities, find solutions to financial challenges, and manage financial assets in a way that enables them to thrive and grow.
“As I have worked with faith-based organizations, nonprofits, and other specialized organizations, I have learned that they often share common issues that make good stewardship more challenging.”
Fluctuations in member or donor giving, rising costs, legal and risk management issues, new technologies, and the uncertainties of the economic environment can place pressures on their ability to strategically manage and protect their assets — to be a good financial steward. Those pressures can also affect their ability to manage financial risks and cash flows and meet the expectations of members, clients, donors, and others to whom they are accountable. So, what can you, as a caring leader, do to be a better steward of your organization’s financial resources? Because every organization is unique, and what is effective in one may not be as effective in another, there is no one right path for every church, school, and nonprofit. At the same time, there are common actions any organizational leader can take to be a better steward of his or her organization’s financial resources. Assemble a reliable team of trusted financial and legal professionals. Attorney, CPA, financial advisor, banker — individually, they each offer you valuable expertise, insight, and advice; together, working as a stable, cohesive team for your organization’s benefit, their value to you grows exponentially. Look for professionals who have specific and significant experience and expertise in serving organizations like yours, a reputation for integrity and honesty, a genuine interest in your organization and its mission, and easy accessibility when you need their help. Create a long-term financial plan for goals and objectives.
What does your organization want to accomplish next year? In two years? Five years? Ten years? Chances are, your goals are exciting in concept, but in reality, will have some challenging financial requirements to achieve them. How do you make that happen while continuing to effectively carry out your organization’s mission? A documented financial plan can provide a roadmap to your goals and objectives, with interim financial milestones to help you stay on course. Protect yourself against the unknowns. Life is full of unknowns — some positive and uplifting, others negative and destructive. A good steward understands the reality of unknowns and works to protect the organization’s financial resources from the possibility of loss. You will want to seek out insurance and risk management professionals who understand the unique needs and activities of organizations such as yours, who can guide you to the appropriate financial protection for your physical property, furnishings, equipment, employees, and potential liabilities. Review your coverages with your insurance professional at least once a year or more often, if necessary, to ensure that you remain appropriately and adequately protected from whatever the years may place in your organization’s way.
— Jeff Nuckols
(Originally published in the NOV 2019 Magazine)