Are you a new or growing nonprofit in need of specialized financial leadership? If you’re not ready to commit to hiring a full-time finance executive, fractional CFO services are a cost-effective alternative. In some ways, a fractional CFO might fit into your nonprofit organization even better than a traditional one.
What is a fractional CFO?
A fractional Chief Financial Officer (CFO) is a senior financial professional who offers their expert services to an organization on a part-time or project basis. Fractional CFOs provide strategic financial guidance and oversight without the long-term obligation of a full-time executive hire.
What does a fractional CFO do?
A fractional CFO supports your organization through strategic financial leadership to meet your goals while adhering to your specified timeline and budget.
While not a full-time employee, a fractional CFO should feel like an extension of your team. Our nonprofit CFOs at NCheng partner with you to expertly navigate financial complexities and achieve long-term sustainability.
Fractional CFO services for nonprofits
As a nonprofit organization, services you can expect from a fractional CFO include:
- Customizable Financial Leadership: Your nonprofit has unique needs – a fractional CFO should be able to tailor their services to your specific financial initiative and desired timeline.
- Strategic Financial Planning: From developing multi-year financial budgets to forecasting cash flow and identifying potential funding gaps, a fractional CFO will guide your organization to long-term success.
- Access to Specialized Knowledge for Less: Many times, hiring a full-time CFO isn’t an option for nonprofits operating with a limited budget. Fortunately, with a fractional CFO, your team can access the same level of financial expertise at a budget-friendly rate.
- Expert Risk Management and Compliance: As a nonprofit, you face overwhelming financial regulations. A fractional CFO takes the burden of safeguarding your organization off your shoulders by ensuring compliance with regulations, bolstering internal security controls, and preparing for audits.
- Transparent Financial Reporting: A fractional CFO should increase transparency by streamlining reporting processes, providing relevant insights, aligning financial strategy with your mission, and generating in-depth reports for grants, board meetings, and donor relations.
- Grant Management and Fundraising Support: Efficiently raising funds is integral to a nonprofit’s sustainability and growth. From your fractional CFO, you can expect support with grant budgeting, reporting, strengthening proposals, and diversification of revenue streams.
Why would a nonprofit work with a fractional CFO?
When your team partners with a fractional CFO who understands nonprofits, your organization benefits in multiple ways.
Maintain Control: Partnering doesn’t mean losing control of your nonprofit’s financial future. It means gaining a professional support system that’s dedicated to serving your mission and financial goals.
Stay Within Budget: Fractional CFO services can be adjusted for your nonprofit’s particular financial project and budget. You’ll receive expert financial guidance no matter what.
Peace of Mind: Navigating the financial complexities of the nonprofit world can be challenging. When you partner with a fractional CFO, you can be sure your organization is maintaining legal, regulatory, and fiduciary compliance.
Tailored Financial Support: Whether you need guidance and support with fundraising, financial planning, resource optimization, accessing actionable insights, or something else, a fractional CFO will customize their services to your needs.
The benefits of hiring a fractional CFO sound great, but you might still be wondering what makes one different from a full-time CFO.
Full-time CFO vs. fractional CFO
When deciding between hiring a full-time CFO or a fractional CFO, there are several differences to consider.
Flexibility: Hiring a full-time CFO is a long-term commitment to working with one financial professional for the extent of their employment. A fractional CFO offers a more flexible option and customizes services depending on your organization’s specific needs.
Cost: A full-time CFO, just like any other full-time employee, will require a salary (executive-level) and benefits package. A fractional CFO provides the same level of financial expertise at a fraction of the cost.
Transparency: A fractional CFO will oftentimes be more transparent about your organization’s financial standing, as opposed to a full-time CFO who might feel pressure to downplay challenges.
Should your nonprofit hire a fractional CFO?
Does your nonprofit need CFO advisory services? It may be the solution to building and growing your mission-based organization. Reach out to an expert today to see if fractional CFO services are right for you.
