Mar
17
2011
CPNO's core group of leaders and dozens of regular volunteers donate a tremendous amount of their time to manage the organization and its fundraising events. In order to facilitate that process now and in the future, I am proposing that CPNO hire Small Business Services (SBS), a firm owned by a Candler Park resident, to handle its bookkeeping. Simply put, this is a big job. Last year, CPNO's activities generated inflows of over $143,000 and outflows of over $94,000 (350 separate checks and deposit items). While this function has always been done by volunteers in the past, I think outsourcing will benefit the organization in the following ways:
1. Checks & Balances - CPNO's treasurer would approve all expenditures. SBS would actually issue payments and reconcile CPNO's bank statements. Separating these two functions is a cornerstone of prudent financial management.
2. Better Reporting - SBS is capable of producing more informative and useful reports for our organization.
3. Continuity - CPNO's board is elected annually. Outsourced bookkeeping would ensure that the members receive consistent information regardless of who is elected as Treasurer. Furthermore, if no one volunteers to be Treasurer, the Board can conceivably operate in his/her absence.
4. IRS Compliance - As CPNO has grown, so has its responsibility to comply with ever changing guidelines and reporting requirements for non-profits.
5. Collections - CPNO currently depends on the same volunteers who sell advertising in the Messenger (or solicit Event Sponsorship funds) to collect those funds. By working as our collections agent, SBS could help CPNO by providing collections administrative support.
6. Free our volunteers' time - Time spent on bookkeeping and administrative duties is time not spent planning and coordinating fundraising events and selling advertising in the Messenger.
Of course, with any new endeavor, there is always a downside:
1. Increased cost - These services will cost CPNO approximately $3,100 per year (6.27% of funds raised in 2010).
2. Collections may not improve and volunteers may not sell more Sponsorships or Messenger advertising.
3. A company may not perform our bookkeeping tasks as well as a dedicated volunteer (or as well as we expect).
I propose that we vote at the April General Meeting to accept Small Business Services' proposal to manage CPNO's bookkeeping for an annual cost of $3,100 ($350 for the first month; $250 for each additional month).