Stepping into the CEO role of a nonprofit isn’t just about leading a mission, it’s about inheriting the financial story that supports it. And sometimes, that story includes a few surprises.
In a recent webinar, The Charity CFO founder and CEO Tosha Anderson shared what she’s learned from helping hundreds of nonprofit leaders navigate those first few critical months in the role. Her message? Ask better questions — before it’s too late.
Hidden Risks Lurking in Plain Sight
Tosha’s seen it all: new CEOs blindsided by balloon loans, organizations labeled as “going concerns” in audit reports, and 990s that haven’t been filed in years.
The common thread? Financial red flags that could have been caught early, if someone knew where to look.
“Most CEOs inherit more than a mission. They inherit risk, some of it visible, some of it buried in the footnotes.”
Your 90-Day Financial Checklist
In your first 90 days, Tosha recommends reviewing:
- The last two years of audits and 990s
- The current budget and who actually built it
- Internal financial reports (and how timely they are)
- Any management letters from auditors and whether follow-up action was taken
If financial reports are delayed or inconsistent, that’s a red flag, not just about your numbers, but about your systems and accountability.
The Bottom Line
Leading with financial clarity isn’t optional. It’s what turns reaction into prevention, and risk into opportunity.
If you’re a new or incoming nonprofit CEO, start your tenure with your eyes open, and your questions ready.
Watch the full webinar, Think Before You Lead: Financial Must-Knows for Incoming Nonprofit CEOs, any time on our Resource page.
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