Which Finance Pro Do I Need in My Nonprofit?

Quiz Questions

• 1.
  How do you feel about numbers in general?

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  • A.
    Keep me away from all numbers!
  • B.
    I understand the basics, but I'm no accountant
  • C.
    I have a savvy bookkeeper on my team that I rely on
  • D.
    I'm super confident in my financial acumen
• 2.
  How do you make tough decisions?

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  • A.
    Shake my Magic 8 Ball and hope for the best
  • B.
    Consult with a colleague, board member, or a friend and do whatever they suggest
  • C.
    Spend a ton of time Googling and making a pros and cons list
  • D.
    Make a spreadsheet, plot out different scenarios, and use the data to make my decision
• 3.
  What's your take on the 990?

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  • A.
    Our 990s are filed but our records are a hot mess and my accountant hates me
  • B.
    Um, what's the 990?
  • C.
    I do the 990 myself! (And hope that the IRS doesn't find any mistakes)
  • D.
    We file our 990 but are not sure we are maximizing its power
• 4.
  How often do you check your organization's bank balance?

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  • A.
    Only when a check bounces!
  • B.
    Literally never. Not sure I even have the login.
  • C.
    Multiple times a week. I love watching our financial strength and sustainability grow!
  • D.
    Once a month when I review my numbers.
• 5.
  Do you feel like you have enough cash in your organization?

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  • A.
    For the most part, but big bills always surprise me.
  • B.
    We have plenty. But it's all sitting in a savings account and I don't think it's working for us.
  • C.
    Ugh, there's never enough cash and we coast into payroll on fumes more often than not
  • D.
    I can cover our basic expenses, but making any big investments is never possible.
• 6.
  How close are you to achieving your PERSONAL finance goals?

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  • A.
    Not close at all, and my organization is actually draining my personal funds
  • B.
    I've saved more than enough for retirement and my kids' college, but I'm ready to build generational wealth!
  • C.
    I'm doing the bare minimum with retirement investing
  • D.
    Payroll from my nonprofit provides for my personal day-to-day expenses, but not much for longer-term goals
• 7.
  What type of work tickles your fancy?

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  • A.
    Creative work is my jam
  • B.
    I love a mix of left brain/right brain work
  • C.
    Analysis & research, all the way
  • D.
    I like to get out of the office and work in our programs as much as possible

Quiz Outcomes

• 1.
  You Need a Bookkeeper

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  Your bookkeeper manages the daily transactions in your organization. She enters your bills, invoices your donors, reconciles your bank accounts, and makes sure the numbers are accurate and booked to the correct categories. She probably knows Quickbooks Online like the back of her hand. She keeps your records organized, legit, and ready for your auditors or the 990. A bookkeeper is usually a leader's first finance-related hire.
• 2.
  You Need an Accountant

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  Your accountant is your tax guru. She understands IRS requirements, business structures, different forms to file, and annual deadlines for the 990 and state charity filings. Your accountant may also be your auditor and is likely a CPA. If you receive federal funding, your accountant is an expert on the uniform guidance audit and can help make sure you're compliant with all government requirements.
• 3.
  You Need a CFO

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  Your CFO is your strategic finance expert, your Chief Money Officer. We review your numbers and draw insights and trends from those numbers, giving you more information to make smarter decisions for your organization. Our one and only interest is providing more insight into YOUR NONPROFIT – not making money in the stock market or ensuring we are complying with the IRS. Without a CFO, you have virtually no way to make your numbers work for you strategically. Your CFO focuses on how to make your nonprofit strong and sustainable based on your numbers.
• 4.
  You Need a Financial Planner

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  A financial planning advisor helps you understand how and where to invest your money, especially if you have a large reserve or endowment fund. They help with long-term financial planning and will get you on the path to achieving your goals of impact and sustainability. They may also help with insurance needs or employee retirement plans. They are often a Certified Financial Planner (CFP) – just make sure she is a fiduciary.