How to Hire a CFO: Should You Recruit Financial Leadership to Your Nonprofit Team?
Considering hiring a CFO for your organization? Wondering if your team even NEEDS a CFO?
Whether you’re scaling up, seeking financial expertise, or preparing for a major growth phase, the right financial leadership can make a significant impact on your nonprofit’s financial health.
But how to hire a CFO?
The process can be overwhelming, especially with so many factors to consider. In this guide, we’ll break down the steps to help you determine the right type of financial partnership for your nonprofit.
1. Define Your Nonprofit’s Financial Leadership Needs
Before you dive into the hiring process, take a step back and assess why you are considering bringing on strategic financial partners.
Are you looking for someone to manage your day-to-day accounting, or do you need a strategic partner to help guide your financial decisions?
You may be able to create the same level of impact for your nonprofit without the need to take on a full-time (or even part-time) team member.
At CFO For Good, I provide strategic financial consulting for nonprofits of every size. Even if you're not looking to bring on a whole new team member, I can partner with you to provide custom, high-touch guidance to alleviate the financial burden you’re facing.
Clarifying your nonprofit’s unique financial challenges will help determine the type of strategic support.
2. Determine the Right Level of Experience
Not all CFOs and financial consultants are created equal, and hiring the right one means understanding the experience level that best fits your nonprofit.
Some key considerations:
- Size & Complexity: Does your nonprofit require someone who has managed multi-million-dollar budgets, or do you need a CFO with experience scaling smaller organizations? At CFO For Good, I tailor unique solutions to serve nonprofit teams of all sizes–whether multi-million (and plus), or just getting started.
- Industry-Specific Expertise: A CFO with a nonprofit background will understand grant management, donor funding, and nonprofit tax regulations—all critical for compliance and sustainability.
- Leadership Style: Do you need a hands-on CFO who will build systems from scratch, or someone to optimize existing financial structures? When we partner together, I’ll ensure we’re auditing your existing systems and using your existing team’s strengths to full advantage (not burning everything to the ground!)
The right fit depends on your nonprofit’s long-term vision and financial landscape.
3. Set a Budget for Compensation
How much should you budget for a CFO? That depends on whether you’re hiring full-time, part-time, or fractional financial leadership.
Here’s a general breakdown:
- Full-time CFO: Salaries vary widely but can range from $100K–$250K+ depending on experience and location.
- Fractional CFO: Offers flexibility—typically $3K–$10K per month for part-time financial leadership.
- Consulting CFO: Hourly or project-based pricing, ideal for short-term financial strategy or audits.
Consider whether your budget allows for bonuses, benefits, and professional development opportunities to attract top-tier candidates.
Need help defining your nonprofit’s financial leadership needs? Let’s chat! Book a free call to determine your next step.
4. Evaluate Candidates Strategically
Bringing on a financial consultant isn’t just about finding someone with the right general expertise—they need to understand the unique needs of the nonprofit space and your organization’s unique mission.
Ask questions like:
- How have you helped a nonprofit scale financially?
- What’s your approach to grant management and compliance?
- Can you share an example of how you navigated a financial crisis for a nonprofit?
Look for proactive problem-solvers who can bring financial clarity and structure to your nonprofit team.
5. Check References & Assess Cultural Fit
A CFO is a critical leadership position, so due diligence is key.
Before partnering with a consultant, speak with previous organizations they’ve consulted with to get a sense of how they work with teams and handle challenges.
A strong CFO will not only manage numbers but will also support your mission and collaborate seamlessly with your team.
6. Make the Right Hiring Decision for Long-Term Impact
Hiring a CFO is a transformational step for your nonprofit. The right financial leader will provide clarity, strategy, and long-term sustainability for your mission.
Whether you decide to bring on a full-time CFO, a fractional CFO, or a financial consultant, the key is ensuring their expertise aligns with your organization’s financial needs.
Ready to explore your nonprofit’s best financial leadership options?
Let’s chat! Book a free call today to determine the best next steps for your nonprofit’s financial future.
