Lead Financial Transformation In Your Nonprofit

  • Nonprofits
  • 5/10/2023

You can lead financial transformation in your nonprofit by taking small steps each day to learn and grow.


As a financial leader, do you notice the same recurring problems at your nonprofit?  Perhaps it’s the time it takes to get the monthly credit card transactions posted to the general ledger, or you find yourself correcting the same error that one of your staff is making each month.  As you reflect, ask yourself, “have I taken action on this repeated problem or issue?”

Financial transformation is needed in all nonprofits.  Whatever the specific issue, leading financial transformation for your organization is likely the solution.  Let’s focus on two key words:

LEAD.   There are thousands of books, courses, and articles on leadership.  I love John Maxwell’s concise definition of leadership – “Leadership is influence.”  If we are going to experience financial transformation, it takes leadership.  As an accountant, I find that my comfort zone is in doing the work I was trained to do. While I value those skills, (and they have served me well throughout my career), I find that leadership takes a different skillset.  As a leader, I must be growing, and I must put myself in a position to learn and practice new technologies and ideas that are shaping the world of business.  I must force myself to take a few minutes out of the busyness of each day, such as month-end close, handling vendor issues, or dealing with a compliance issue, to focus on where we can grow and change.

TRANSFORM.   At its core, transforming is about change.  In the March 2023 issue of the Journal of Accountancy, Anita Dennis’ excellent article, “The changing role of the CFO,” quotes Tom Hood as saying, “We have to learn how to perform while we transform.  We can’t do one or the other, we have to do both at the same time.”  I think that accurately states the challenge that most financial leaders face when they look at the business of running their nonprofit and the need to manage change, as they embrace new processes and technologies. Interestingly, leadership and transformation go hand in hand.  A leader must drive transformation  – and achieving transformation often defines the leader.

Leadership and transformation action items:

  • Spend at least 15 minutes a day giving yourself the “luxury” of learning about something in your field.  Perhaps its data analytics, or a new software tool, or a course on leadership.  Keep learning daily to fuel your ability to lead.

  • Think about two things – a persistent problem that you need solve and a future state that your nonprofit needs to achieve.   Take 10 minutes and write down everything that comes to mind about the problem and what that improved future state could look like.

  • Start engaging your team by discussing the problem you want to solve and the future state you’d like to achieve.  Communicate with senior leaders about where you’re going.  Develop a list of specific action steps that will move you toward solving the problem and the desired future state.

I love the story in the biography of Steve Jobs about his discussion with a Corning executive who complained that they didn’t have the capacity to make the Gorilla glass needed for the iPhone.  “Yes, you can do it…Get your mind around it. You can do it,” said Jobs. The executive was shocked they did it in under six months.  No question about it – Jobs was a transformational leader, and you can be too!

Financial transformation is within your grasp, regardless of how you feel about your current (team, software, process, fill in the blank).  If you are looking for a trusted partner that can help you lead financial transformation, we are here to support you on your journey!

This blog contains general information and does not constitute the rendering of legal, accounting, investment, tax, or other professional services. Consult with your advisors regarding the applicability of this content to your specific circumstances.

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