Looking at the 6 types of CFOs and their roles can help you think about finding a leader who aligns with your business strategy.
“Many non-profit CFOs need capital-raising capabilities, but with a unique twist: the goal is reaching a balanced budget rather than showing profit or creating equity value. This requires different skills and a different approach to financial storytelling.”
Kathy Pattillo
Managing Partner, U.S.
Global Leader, Financial Officers Practice
Non-Profit CFO: Mission-Driven Financial Steward
The non-profit CFOs serve a fundamentally different purpose than their for-profit counterparts. Rather than maximizing shareholder value or preparing for an exit, these leaders shepherd financial resources in service of a mission. This requires a distinct mindset: securing funding to expand the organization's impact rather than generating returns for investors.
Non-profit CFOs often must diversify funding sources to reduce dependency risks. They balance the organization's drive to expand its mission against the imperative of financial prudence, ensuring that enthusiasm for impact doesn't compromise fiscal stability.
Specialized Skills
“Many non-profit CFOs need capital-raising capabilities,” Kathy Pattillo says, “but with a unique twist: the goal is reaching a balanced budget rather than showing profit or creating equity value. This requires different skills and a different approach to financial storytelling.”
Grant management expertise is frequently essential, as many non-profits rely heavily on government and private foundation funding. Each grant comes with specific requirements and restrictions that must be carefully tracked and managed.
Regulatory compliance can be particularly complex in the non-profit sector. Grants from government agencies and private organizations often require their own specialized reporting, creating multiple compliance frameworks that the CFO must navigate simultaneously.
Financial forecasting in this context means balancing mission goals with fiscal responsibility—projecting both the resources needed to serve the mission and the realistic funding likely to materialize.
Strategic Responsibilities
Non-profit CFOs often need superior stakeholder communication skills compared to typical CFOs. They may need to:
- Work with boards that may include major donors with strong opinions.
- Manage relationships with diverse donor constituencies.
- Navigate requirements from multiple regulatory bodies.
- Communicate how financial resources translate into mission outcomes.
Budgets can vary dramatically across non-profits. Some organizations operate with very tight budgets while mission pressure remains intense. Others have more resources but need strategies to deploy them effectively while maintaining the balanced budget that preserves tax-exempt status.
The performance metrics don't focus on profit, but rather measuring mission impact alongside financial health.
