To avert potential disaster and ensure your not-for-profit’s long-term survival, board members need to be alert to subtle signs of financial distress. These might include budget variances that aren’t easily explained or management dipping into operational reserves. Also be wary of financial statements that are late, inconsistent or not prepared according to GAAP. And investigate if long-time donors express concern about your nonprofit’s finances or the executive director starts to overstep his or her authority. Contact us if you suspect financial trouble.