Overcoming one’s fears of number

By Sadia Qureshi

March/April 2022

An often-overlooked aspect of Islamic centers’ governance is their board members’ financial literacy. While highly skilled in their own areas of expertise, many of them often lack relevant training and experience in this regard. In addition, their meetings and interactions focus more on discussing program accomplishments or legal matters. 

However, the mosque’s management must help these individuals embrace and understand financial data. Achieving this goal, with some creativity and perseverance, can add tremendous value to achieving Islamic centers and nonprofits’ missions.

Why are people intimidated by numbers? 

Let’s admit it: Numbers are rare in meetings or discussions (“unfamiliar”); financial numbers and spreadsheets are simply dry, somewhat boring and cause anxiety; require you to pay serious attention (“disruptive”); and mean that a learning curve is right in your face. So, your immediate response is an entitlement to self-exemption because if it’s never been your “thing” or natural aptitude. 

Numbers also mean a lot of responsibility, because a small error can cause great harm. And thus, the common attitude is “Since I didn’t engage with financials, I’m not responsible.” But one should be aware of just how costly this attitude might be. For example, the famous 2018 case of Missing Oxford Comma where Portland, Me., dairy delivery-truck drivers won $5 million from their employer for years of unpaid overtime wages, all because of how commas were used in state legislation governing overtime payments. Also, in 1872, the United States Tariff Act, as originally drafted in 1870, included an unwanted comma that cost taxpayers nearly $2 million (the equivalent of $40 million plus today). 

In addition, numbers require transparency and accountability, especially with reconciliations, which means “a lot of extra high responsibility work” and are seen as a “specialty” — someone else’s job. “That’s why we hired an accountant. Why should I spend time on something I’m not responsible for?” 

The ensuing stress and anxiety cause people to avoid numbers. Lack of support from those who understand financials just increases the problem. However, both of these issues can be resolved by intentionally creating a culture in which they are a normal part of regular board meetings or interactions, phone discussions, program reviews and goal setting. 

Improving the board’s financial literacy

• Offer financial literacy workshops to all members. These trainings may include, among others, financial planning, budgeting, investing, understanding and reviewing financial statements, financial internal controls, financial reporting, budget reconciliations and how to spot errors or discrepancies. As hiring professional trainers can be costly, collaborating with other Islamic organizations for subject matter experts or willing volunteers can help save funds. In exchange, you may offer some type of cross training in your organization’s area of expertise. You can also periodically screen and share free online resources for your board and staff. 

Help the board understand the importance of investing excess funds and cash savings to protect the institution from inflation and the impact of donor fatigue or lapse. For example, the North American Islamic Trust (NAIT; [email protected]) offers “free” customized financial literacy workshops. With their expertise in finance and investing, they can also help with your mosque’s halal investing and sustainable fund development goals. 

• Help them understand the center’s operational and financial model. Elected and selected board members often have little or no prior background in mosque or nonprofit operations, which makes digesting financials even harder. Once they fully understand the model and what’s important to monitor, they will more likely grasp and understand the financial data’s “whys and hows.” 

• Attach a bit of financial accountability to each member’s role. This will help them care and learn. Keep discussions on programs, people or impact connected with finances; they are not separate. Helping them learn why certain numbers matter in measuring their department or committee’s progress toward the stated goals will motivate them to track specific numbers in relation to the organization. 

For example, what number should board members leading a youth committee care about if they want specific outcomes for their program, or a zakat committee lead care about if he or she aims to support X number of people, programs or communities? This skill will also help them refrain from making program decisions that may impact the center’s overall financial health.
• Share financial information timely and in an easy-to-digest manner. Keep it brief yet comprehensive enough to be meaningful and reflect the vision. Avoid too much specialized jargon and terminology. 

For example, the commonly used term “accounts receivable” can be hard to understand. As they may feel too embarrassed to ask what it means. If using jargon is necessary, provide its definition. Otherwise, use simple layperson language and put the term in parenthesis. Also, use images, colors, simple charts, symbolic figures, shapes and maybe words instead of actual numbers, where possible, to make financial reports look less intimidating. 

• Share financial insights regularly in meetings. Not only does this make financial matters more familiar, but it also helps build mutual trust and transparency between the board and management/staff. Invite the accountant or finance person to meetings so board members can talk with them directly. The more the board sees and hears about numbers, the more they will begin to feel at ease when dealing with them. Their questions will reveal in which financial areas they need further training and education.
• Create a financial dashboard. This will help them track certain indicators for the organization’s overall financial health and program performance. For example, color-code certain areas, such as red (negative performance — too much expense), orange (on track but needs monitoring and attention — a little slip could be costly) and green (keep up the good work, well within budget + revenue). 

Consider using the specific donor management software or client management tools used by some nonprofits, such as Salesforce, that automatically creates custom dashboards. 

• Engage board members in the budgeting process. This may seem difficult and time consuming, but not doing so will likely cause these individuals to be less invested in meaningfully enforcing or monitoring those budgets.
• Engage them in defining financial internal controls. Although they won’t be the ones actually practicing the controls, participating in policy development will help them understand the financial processes and procedures if they are assigned a role in the policy or in other areas that involve financial risk management and monitoring.
• Meet in person to review financial information. Personal meetings are far more effective than just emailing intimidating, dry and stress-causing spreadsheets. Such encounters will help board members retain and make better sense of the data. Sometimes, an easier process also helps make hard things seem easier.
• Adopt a whistleblower policy. Doing so will help board members understand the steps and procedures in the case of a financial breach or fraud.
• Implement the tips consistently. Understandably, making busy board members interested in financials is a bit challenging. But incorporating two tips at a time and implementing them consistently will significantly help members improve their financial literacy and become effective financial stewards for your nonprofit’s success. 

Sadia Qureshi is a communications consultant for nonprofit organizations. 

[Editor’s note: Copyedited and published with permission from the North American Islamic Trust, Inc.^©]