Quick! Name five professional activities that don’t concern money. Stumped? Yes, of course you are. From the evident: What does it cost? To the subtle: Did we achieve our objectives? And the in-between: Can we do this program? Almost all professional activities concern money. If mission is the heart of your organization, money is its blood.

Since money is essential, every group gains from creating meaningful money conversations. This article shares three common hazards that block such discussions. To avoid these hazards, your group needs to recognize them and then, practice their thinking skills to move beyond them. Start the process by discussing one hazard at each of your next three meetings, using the questions suggested below.

Hazard One

Money talk fosters stoplight decision-making

• “We can never afford that.” (Red light)
• “How much does it cost?” (Red light, possibly turning green.)
• “You can get a great deal” (Green light)

Stoplight decision-making translates complex decisions into yes and no answers. Should we take this action? “No, we can’t afford it.” “Yes, we received funding.” When you base decisions on cost alone, you miss out on creative ideas, alternatives and discovering the other impacts of your decisions. When you consider factors beyond cost, you strengthen your decision-making.

Challenge Questions
If the money need were solved, would you take this action? Refined: What parts of this action can you design to cost little or no money? Further refined: To fulfill your mission you need this action. In what three ways can you do it with minimal funds? And, what action have you avoided because of a lack of money?

Hazard Two

Money talk elicits emotions

Brain scientists tell us that as emotions increase thinking decreases. And money talk elicits emotion. The study of “neuroeconomics” or the connection between money and the brain is a fast-growing interdisciplinary field. Research from Carnegie Mellon found, “Under the influence of powerful emotions or drives, people often end up doing the opposite of what they think is in their best interest, even at the moment of acting.” In groups, this means that when money is discussed, the group runs the danger of deciding exactly the opposite of what it would if it were thinking. Remember groups who made “penny wise and pound foolish” decisions?

Exploration Questions

1. What emotions do you experience when you consider asking for money for our mission? What emotions do you experience when someone gives us money?
2. What actions can you take to help you slow down and think when money conversations elicit these intense emotions?

Hazard Three

Money talk gives the impression of being specific, but it’s not

Money talk is often vague. One person who “needs money” is like Old Mother Hubbard. Not only is every cupboard empty, the checking account is zilch and the cards maxed. Another person who “needs money” is short of pocket change and heading to ATM to withdraw one hundred dollars.

Thought questions

1. Write down the figure you think a person means when they exclaim, ‘that’s a lot of money.’ Discuss.
2. In what ways does money vagueness (i.e., the true cost of your activities, about salaries, your fundraising or administration costs) protect your mission? In what ways does it harm your mission?
   • Can you think of an example of when one of these or other another money hazards impacted this organization? What was the impact?
   • What specific and measurable actions can you take to improve decisions that involve money?

Additional Questions for All Three Hazards
The quality of your money talk is important. It impacts your ability to make decisions about your mission. When you recognize these three common money hazards, you open the door to better decisions that make more mission for your organization.

Click here for more information on the seven sources of nonprofit income.

For more information on how to develop new revenue streams for your nonprofit click here. You will find the Money-tastic series especially helpful.