The Nonprofit CFO Benchmarking Study was conducted in an attempt to gain insight into the multi-faceted role of the CFO. For example, does their job change as the budget increases? Are CFOs with smaller budgets expected to wear more hats? These are the questions that the Tate & Tryon Study aimed to uncover. Results and analysis in the report are based on data collected using an online survey of nearly 100 nonprofit CFOs in the Washington, DC Metropolitan area in January 2010. CFOs were asked to respond to a series of brief questions about how much time they spend on accounting and finance, operations management, human resources, and volunteer meetings.
Key observations from the Nonprofit CFO Benchmarking Study:
- Regardless of budget size, CFOs are spending considerable time (at least 25%) on nonfinancial activities, including operations management, human resources, and interaction with volunteers.
- Operations management is the most common nonfinancial responsibility suggesting that many CFOs are de facto COOs.
- Considerable time is spent on human resources activities; however, the amount of time decreases as the budget size exceeds $30 million and the responsibility is under the direction of a full time Human Resources director.
- Time spent on board/volunteer interaction increases markedly as the budget size increases, suggesting the importance of strong communication skills at this level.