Hrm/531 Week 6 Assignment

Week Six Assignment The chief executive officer is the principle leader within the nonprofit organization and is the champion of the organization’s mission. Without a clear direction, the organization can easily lose focus and drift away from the mission of the nonprofit. While the role of the CEO may vary from one organization to another, financial leadership is imperative to the organization’s success. The CEO must protect the organization from financial hardship by ensuring financial health through sound accounting processes and controls to avoid fraud. Exercising responsible financial management is one of the 10 basic responsibilities of nonprofit CEOs as identified by Richard Moyers in 2005 (Worth, 2009). An essential difference between the finances of a corporation and one of a nonprofit is that the finances are often more complicated in a nonprofit organization. Therefore the CEO must be prepared to handle

This provides a solid foundation for the organization in a multitude of areas in managerial and leadership arenas. In particular, financial management falls heavily upon the CEO, but it is the responsibility of the board to approve financial decisions and the executive staff often contains a director of finance or financial managers who audit and manage the day to day finances of the organization. Fortunately for CEOs with even the smallest amount of financial management experience, a wealth of options exist to build an effective support system and ensure the CEO is a strong financial leader. The CEO must be willing to listen to and trust in those with more financial management experience than himself. The CEO must also be able to accept where he may be weak and therefore able to better himself and his knowledge base in order to provide the nonprofit organization with the best possible financial