As a nonprofit, juggling resources, be they human or financial, is a daily occurrence. Most nonprofits have smaller teams, with many performing at least two or three different jobs. When this happens, important initiatives like strategy development for growth, communications and financial stability are not always given enough time and focus.
If you are the executive director, you are expected to lead the organization, while also ensuring the proper financial foundation is established, the growth strategy has been developed, the fundraising and donor development plan has been vetted and your mission is being carried out. If this sounds like a familiar scenario, then according to Forbes, you should think about investing in a C-level financial executive.
1. Let the executive director lead
Executive directors (EDs) have competing responsibilities. Priority number one is to lead the organization. This is easier said than done. Finances are an equally important part for sustainability and success. A volunteer would not be an effective or appropriate solution.
Women on Business states, “While they occupy the lead visionary and implementer roles within their organization, they are also expected to act as CFO and CMO. They are brand ambassadors, development officers, and make most of the major ‘asks’. While they may have a bookkeeper on staff, most don’t have anyone performing financial forecasts, managing stewardship, or guiding long-term financial growth through foundation development.”
A fractional financial executive (like a Controller or CFO), especially one backed by a strong accounting team, can manage financial matters, recommend opportunities for improvement and collaborate with other team members, empowering the ED to focus on broader organizational goals.
2. Get the expertise without the high price tag
Full-time C-level executives usually earn a substantial salary, as evidence of their expertise, experience and value they bring to the organization. Nonprofits need C-level expertise, but at a much more cost-effective price tag. Enter the fractional financial executive – get the expertise, without the high price tag. As an outsourced resource, quantity of hours can be adjusted based on need, frequency of work is variable and cost for benefits (usually paid to a full-time employee) becomes savings for the organization.
3. Leverage insights from other nonprofits
Fractional financial executives bring past experience, learnings and insights from other nonprofits. They will often be working with other nonprofits concurrently and will be able to observe trends affecting others and bring this knowledge to help your organization detect and prevent future issues much farther upstream.
4. Leapfrog a steep learning curve
New team members can mean extra time to get up to speed and learn the business. Fractional financial executives are ready to jump in and work with your accounting team from day one because of their experience and expertise. You are able to leapfrog or even avoid a steep learning curve, and you are able to reap the return on your investment at an accelerated pace.
5. Capitalize objectivity vs. group think
Fortune says fractional C-level executives pride themselves on their objectivity and ability to get their work done. Politics and everyday office situations, which could influence judgement, do not enter the equation or are kept at a minimum. Data and expertise are the primary drivers for decision making.
In a nutshell, a fractional financial C-level executive will be a valuable asset to your team. This resource is an essential element to your nonprofit’s financial health because they provide high-level financial support, best-in-class practices and strategic advice. LTD Global has helped its nonprofit clients deal with complex challenges as their financial needs and requirements evolve. Learn more about how we can help you.