Courtesy Capital CFO+
By Sabrina Houser
When I first started in the role of CEO and CFO at the nonprofit I was privileged to run, I quickly realized how important the financials were to the organization. I realized that although we were talking about profit and loss, revenue/expenses, black/red net balances, what we were really talking about was our mission.
The kids we served. How many more or fewer we could help. How each dollar directly correlated to our programs. The more money we were able to raise, the more we could do. The less we raise, the more we needed to cut back.
Because of this direct correlation between dollars and program scope and impact, the CFO of a nonprofit plays a key role in advancing the mission of the organization. It is never just about the numbers – it is about the mission. It is also always about the numbers, because without solid financial information it is impossible to make strategic, informed decisions regarding service delivery, program sustainability and the future direction of the organization.
For these reasons, the role of CFO is critical.
This realization changed my mindset. I understood that I needed to make the connection between finances and mission real for my donors, my funders, my board, my team. I needed them to feel that the mission was alive in the black and white numbers.
As CFO, I could connect the dots for my board, my staff, funders and community partners. Explaining our financial position and how it directly impacted our programming and our capacity to grow, or our need to adjust the scope or reach of our programs. I learned to love end-of-year projections, cash flow projections, the symmetry of a balance sheet. All these tools allowed me to communicate to the board and finance committee the connection between our financial picture and our impact. And they, in turn, could confidently make decisions based on solid financial information.
