Why is it desirable (or necessary) for not-for-profits to have a ...

[lunatika]

Question 1

What is a reasonability check?
 
  What will be an ideal response?

Question 2

Why is it desirable (or necessary) for not-for-profits to have a board of directors?
 
  What will be an ideal response?

[pratush dev]

Answer 1

A reasonability check refers to looking at the initial forecast result and essentially thinking about whether it makes sense given the expected external environment for the forecast interval. This is necessary especially for quantitative forecasts, which churn out predictions automatically from a given data set. In other words, such forecasts should be subject to a dose of common sense. If annual rates of growth have been in a 3-5 range for several years and the forecast suddenly suggests a 10 increase, this would be a reason for pause and think about reasonability. Another approach would be to perform a forecast using at least two different techniques, say an autoregressive forecast and a multiple regression. If the two results for the forecast period are close to each other, this suggests reasonableness.

Answer 2

Oversight and accountability. U.S. CVBs are required by law to have a non-compensated board of directors that has governance and fiduciary responsibilities detailed in a set of bylaws.

[lunatika]

Thanks for the timely response, appreciate it

[ryansturges]

Gracias!