How Nonprofits Benefit From Fractional CFO Services
Part of running a successful nonprofit is optimizing its finances. That takes a special set of skills, which is why you may be considering hiring a CFO. However, adding a CFO to your full-time payroll may not be the best solution. Fractional CFO services can provide more cost-effective access to the expertise you need.
How Fractional CFOs Work
A fractional CFO is like a financial expert you can access anytime you want. They often have previous CFO experience — potentially in sectors that match your own.
Your fractional CFO can help with a variety of tasks, including:
- Creating new financial systems and processes, which you can manage internally afterward
- Preparing your nonprofit financially for a new project or phase of growth
- Optimizing your cash flow
- Helping you cut costs
Four Ways Nonprofits Benefit From Fractional CFOs
There are a number of reasons to hire a fractional CFO over a full-time alternative. These four are the most compelling for nonprofits.
1. Cost-Effectiveness
First, fractional CFOs tend to be more cost-effective than full-time hires. This is because you only pay for the services you need. There’s no need to cover benefits or offer a competitive full-time salary.
2. Easy Access to Expertise
Fractional CFO services make it easier to get expert-level advice, regardless of the size of your organization. For instance, you could partner with a fractional CFO who previously worked for an international charity.
Having that kind of expertise working on your behalf could be beneficial. You may enjoy deeper insights from your financial data streams. Or, you could discover a new opportunity for growing your mission that you wouldn’t have spotted otherwise.
3. Flexibility and Scalability
Fractional services are also easier to ramp up or down. You can do so freely as your needs change in real-time. This gives you more ability to control costs within even very small time windows.
Nonprofits seeking growth may especially benefit from this flexibility and scalability. You can start with only minor services, then gradually add more as you expand and your needs change. This kind of dynamic approach wouldn’t be possible with a full-time CFO.
4. Support with Compliance and Reporting
Finally, fractional CFO services offer compliance and reporting assistance. You can use it on an as-needed basis, so you have access to expert help right when you need it.
That could mean:
- Helping out with annual tax filings and financial reporting requirements
- Working on the financial aspect of grant applications
- Collaborating with other stakeholders focused on finance within your organization
- Supporting other legal obligations you may have in your sector
Find Your Fractional CFO at CFO Hub
Deciding to partner with a fractional CFO is just the first step. Now, it’s time to compare options and consider which services could be good fits for your nonprofit. CFO Hub is here to help you do it.
We offer a variety of expert-level financial services for nonprofit clients. Whether you’re hoping to grow or looking to establish yourself, our team can help.