As not-for-profit organizations grow, there may come a time when the finance team needs a Chief Financial Officer. Sometimes that person is hired from outside the organization. Sometimes you can promote from within.
In our experience with nonprofit accounting consulting, we’ve witnessed a range of priorities at the CFO level. Some new CFOs hit the ground running by formalizing processes and team roles. Others take a more phased approach to change. Either way, there are certain expectations that organizations should have for a CFO in the first 100 days of their new role.
Let’s break it down for you.
Assessment
As you might expect, hiring or promoting a CFO is a great time to assess the organization’s processes, personnel and profits.
This goes beyond reviewing financial statements and understanding how different departments function in relation to the finance team. How does money flow in and out of the organization and who is responsible for those functions?
Also, what tools are in place to keep this process efficient as well as secure?
By starting with a big picture view of the organization, the CFO can begin to understand what is working well and what will need improvement. Interviews with the board, management team, staff and the nonprofit audit team can support this broader assessment.
Vision
What are the growth goals of the organization? Where are the profit centers and the profit laggers? You may think that this is the role of a corporate CFO, but more not-for-profit CFOs are serving as equal partners to the CEO/executive of the organization.
Creating a vision for healthy financials and funding is important for the longevity of the organization and the success of the CFO. That may mean changing how “things have always been done” and implementing new technologies or partnerships to support success.
Within the first 100 days, your CFO should be able to articulate a SWOT analysis of the finance department and how it aligns or supports the organization’s vision.
Execution
A CFO never acts as a lone ranger. Without the support and buy-in of the team, those first 100 days could be rough. You should expect that your CFO is building bridges with key leaders and employees to support execution of organizational goals. That could include new technology implementation and training in addition to larger operational initiatives.
It also helps to build a good relationship with your audit team or any outsourced vendors to support smoother processes and cost savings.
Community Relations
CFOs are taking on more public-facing functions in private and not-for-profit organizations. Your new CFO may consider participating in a CFO roundtable group or boot camp to elevate skills while also building a professional network.
In addition, your CFO should be visible to stakeholders such as donors, community partners and community leaders who support your organizational success. Although the finance function must remain independent and conflict-free, being accessible for questions or updates can reinforce the good reputation and accountability of your not-for-profit.
Is your organization ready to promote or hire a CFO? Talk to us about LvHJ’s CAS+ and audit services to support their success. Our CAS+ services (nonprofit outsourced accounting services) can augment internal finance staff to accelerate functional improvements and reporting. Our audit and assurance services are accessible year-round for new CFO questions and guidance.
