As far as management of the finance is concerned, if we look around, we can see a number of problems faced by us, the Church personnel and organizations – lack of resources, inefficient management of existing resources, increasing overhead charges, resource mismanagement, lack of capacity building, lack of performance measurement, etc. We face these problems because financial management is given such a low priority or there is nothing called financial management at all in our way of procedure. This is often due to lack of adequate knowledge and poor financial planning and monitoring systems.
The Need for Financial Management
Many of us concentrate only on implementing projects that cater to the needs of the deprived people and in the process, we do not pay enough attention to financial control at all. It is often too late when we realize that such negligence has resulted in a huge financial loss. In other words, we could not prevent what could have been prevented. Hence, Financial Management is of critical importance.
Importance of Financial Management
For us too, like any other organization, Financial Management is a very important area, because:
- it is the key to achieving our objectives
- it enhances our credibility
- it enables us to be accountable to the donors
- it eliminates fraud and theft
- it strengthens our fund-raising efforts
- it helps us to make productive decisions
- it ensures the future sustainability of the organization
Fr Alex G SJ
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