A CFO’s Favorite KPIs for Nonprofits
KPIs for nonprofits provide a clear measure of how well the nonprofit is maintaining financial health while working toward its mission.
KPIs for nonprofits provide a clear measure of how well the nonprofit is maintaining financial health while working toward its mission.
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What do many successful nonprofits have in common? Good financial management.
In nonprofits, managing your finances effectively is essential to running a sustainable organization. Not only does good financial management help keep your organization running, but it also helps bolster trust in your nonprofit.
A Chief Financial Officer (CFO) is a C-suite financial manager for your organization. But is your organization ready to bring on a CFO? Do you need one?
In this article, we’ll look at how to determine if you need a CFO and the benefits of hiring one.
The role of a CFO is all about financial management. Depending on the organization, a CFO may have many different responsibilities, including:
Overall, a CFO provides strategic financial planning and management. This management is vital for efficient resource allocation and the long-term sustainability of a nonprofit. In addition, a CFO aligns financial decisions with the organization’s mission to help maximize the nonprofit’s impact.
When does a nonprofit need a CFO? Although every nonprofit is unique, there are some tell-tale signs your nonprofit might be ready for a CFO. In most cases, you can be sure you need a CFO if you’re finding it difficult to keep up with accurate bookkeeping or your nonprofit accounting is a mess.
Here are five signs your nonprofit is ready for a CFO:
A nonprofit CFO can offer a wide range of benefits to your organizaiton–from streamlining financial reporting to increasing donor trust. Most nonprofits will benefit from a CFO, especially if they’re experiencing financial challenges or sudden growth.
Five of the top benefits of hiring a nonprofit CFO include:
Hiring a full-time, in-house CFO isn’t an option for every nonprofit organization. Adding another C-level employee can be expensive, especially if you need to offer a high salary and comprehensive employee benefits to attract top talent.
Luckily, there’s an easy way to get the CFO services you need without bringing on another full-time employee: fractional CFO services.
Outsourcing your CFO needs has plenty of benefits, such as:
Whether you hire in-house or outsource CFO services, bringing on a CFO can provide essential financial management and advice. Hiring a CFO can also improve financial transparency, improving the trust between your organization and donors, stakeholders, and the public. Additionally, a CFO helps your nonprofit stay compliant with the strict legal and tax regulations facing nonprofits.
One of the easiest ways to access a CFO is by outsourcing your financial management needs. Working with a fractional CFO gives you the benefits of a CFO without the added cost of hiring another full-time employee, including paying a salary and providing employee benefits.
Companies like The Charity CFO make it easy to get the financial expertise you need without the cost of hiring in-house.
The Charity CFO provides fractional CFO and other financial management services to help your nonprofit run smoothly without the added expense of a full-time employee. We work exclusively with nonprofits so you can be sure our team of experts understands the unique financial needs of nonprofit organizations.
Schedule a call today to learn more about CFO services from the Charity CFO!
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