More often than not, many non-profit organizations have life-changing ideas that they can't execute due to financial difficulties. While some of these economic challenges occur due to external forces like lack of donors, some NGO boards limit the expenditure and financial information. All non-profit organizations desire to increase the impact of their missions and goals without facing unnecessary financial restrictions. Every NGO's dream is to hire a full-time CFO to go through the organization's financial information and chart a clear path to prosperity. They can address challenges like cash shortages, fundraising woes, compliance penalties, and fraud, which bog down most of these organizations. However, the cost implications of establishing an internal financial management team have been a stumbling block. As such, NGOs have gradually embraced part-time CFO services to address their financial woes. This article will elaborate on three ways that NGOs can benefit from part-time CFO services.
Effective Cash Management
Cash flow is crucial for the sustenance of a non-profit organization, including its dependents and employees. Proactive cash management can enable your organization to meet its goals and targets without compromising its financial footing. Working with reputable financial experts offering part-time CFO services can improve your financial awareness, preventing you from overspending and setting unrealistic goals. They can use tools like cash position reporting to determine the rate at which the organization is depleting its cash and come up with accurate cash flow projections.
Many people underscore the role of budgeting in establishing and maintaining a sound financial roadmap for non-profits. Working with a single realistic budget will keep everyone on the same page, reducing wrangles between the board and management. Creating and implementing a working budget is one of the roles undertaken by firms offering part-time CFO services. Your organization can use the budget to hold department heads accountable if they fail to meet the targets. You can also leverage the budget to align all employees, volunteers, and partners behind the same goals, improving productivity and efficiency.
Successful Fundraising Campaigns
For a majority of non-profit organizations, fundraising is one of the ways to supplement their income to meet their financial obligations. Successful fundraising can enable an NGO to balance its budget and afford the activities set out in the financial year. Most non-profits use fundraising avenues like donations and grants to seal their cash gaps. Paying for part-time CFO services will increase the confidence that donors and grantors have in your organization. They will likely offer their financial assistance because they are aware of your NGO's commitment to accountability.
If you are in the need of CFO assistance, consider looking for reputable companies such as Leaf Point Solutions.