Oct 8, 2019, 1:13 PM
(from the Wall Street Journal) Leadership recruiters are fielding more calls from nonprofits that seek to install financial leaders with corporate backgrounds, and more corporate finance executives are making the switch. Recruiters surmise the trend stems from increased donor scrutiny and desire for organizational finances to be well managed. Vetting groups like Charity Navigator want nonprofits to dedicate more than 70% of their funds to programs, rather than administration and fundraising.
CFOs choosing to work for a nonprofit are signing up for a new set of challenges. The task of gathering reliable data about a nonprofit’s operations can be difficult, and with increased reliance on donations, planning and budgeting can be trickier. Finance leaders often need to learn new ways of defining success; measuring non-financial return on investment can present dilemmas, but be more rewarding. Many leaders who make the switch find compensation is not an issue.
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