What questions should nonprofit leaders be asking their finance team? In this episode of The Nonprofit Show, Barbara Enright, Director and Market Leader at Your Part-Time Controller (YPTC), shares five key questions that can help nonprofit executives and board members gain clearer financial insight and make more informed decisions.

Barbara begins with a foundational question: Can we trust the numbers? Financial reports are only useful when they are accurate, complete, and fully reconciled. Using a real-world example, she explains how an uncollectible pledge transformed what appeared to be a surplus into a deficit, highlighting why leaders need confidence in the financial information they receive.

From there, the discussion shifts to identifying the issues that deserve immediate attention. Barbara encourages leaders to ask, What do I need to know right now? Timely communication about cash flow challenges, budget concerns, or other critical financial matters helps organizations focus on the decisions that have the greatest impact.

Looking ahead is equally important. By asking, What are we expecting next?, nonprofit leaders can use forecasting, projections, and scenario planning to prepare for a range of possible outcomes. Barbara shares a practical framework for evaluating opportunities and risks so organizations can make informed decisions proactively.

The conversation also explores the importance of understanding restricted and unrestricted funding. Financial resources may appear available on paper, but funding restrictions can significantly affect how dollars are used. Strong communication between finance, development, and program teams helps ensure everyone understands both the opportunities and limitations that come with funding decisions.

Finally, Barbara discusses audit readiness and why preparation should begin well before the audit process starts. From documentation and internal controls to policies and cybersecurity considerations, proactive planning can help organizations navigate audits more efficiently and strengthen their overall financial operations.

00:00:00 Questions Leaders Should Ask Finance

00:03:12 Can You Trust the Numbers?

00:05:49 When a Surplus Becomes a Deficit

00:06:50 What Do I Need to Know Right Now?

00:09:53 What Are We Expecting Next?

00:11:07 Blue Sky, Gray Sky, Dark Sky Planning

00:12:42 Finance Questions Anyone Can Ask

00:13:33 Why Budgets Need Forecasts

00:14:32 Restricted vs. Unrestricted Funding

00:16:02 Where Development and Finance Break Down

00:20:10 Are We Ready for the Audit?

00:22:12 Internal Controls, Policies and Cybersecurity

5 Questions Nonprofit Leaders Should Ask Their Finance Team from American Nonprofit Academy on Vimeo

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