Jumping In: A Guide for Interim Nonprofit Controllers

If you love the thrill of a full-access pass to your favorite theme park, then you might be perfectly suited to be an interim nonprofit controller. No day is the same: you’ll manage financial operations, ensure compliance, and provide an even keel—all while navigating the complexities of an organization in transition. We’ve got everything you need to know about this critical role so you can bring stability and clarity to a nonprofit during its leadership transition.?

Understand the Nonprofit’s Financial Landscape?

Stepping into a new organization requires a swift yet thorough understanding of its financial status. Begin by reviewing the latest financial statements, budgets, and audit reports. This will give you a snapshot of the current financial health and highlight any immediate concerns. If available, collaborate with the outgoing controller or the finance team to get insights into ongoing projects and pending financial issues. Prioritizing this foundational knowledge will enable you to make informed decisions from day one.?

Establish Clear Communication Channels?

Effective communication is crucial during transitional periods. Ensure that you set up clear lines of communication with the executive team, board members, and key stakeholders. Regular updates and transparency about financial status, challenges, and progress will build trust and confidence in your leadership. Ask up front: how is information best conveyed? Don’t assume everyone wants the same spreadsheet or slide deck. Your ability to customize by audience will set you apart, so offer and use a range of communication tools to keep everyone informed and engaged. And finally, make yourself available for questions and discussions! You’ll simultaneously be of greater help and have clearer visibility to the work at hand.?

Implement Robust Financial Controls?

In times of transition, the risk of financial mismanagement can increase and it’s your job to assess and strengthen internal controls to safeguard the organization’s assets. Conduct a review of existing policies and procedures to find any gaps or weaknesses. Ensure that segregation of duties, approval hierarchies, and audit trails are in place and adhered to. Providing training and resources to the finance team can enhance their understanding and compliance with these controls. Robust financial controls are essential for maintaining integrity and trust during your interim tenure. If available, leverage the board’s finance committee to support you in your work.??

Strategic Planning and Budgeting?

One of your critical tasks as an interim controller is to facilitate strategic financial planning and budgeting with the rest of the finance team. Engage with department heads to understand their financial needs and constraints. Use this information to develop realistic budgets that align with the nonprofit’s strategic goals. Regularly monitor budget performance and adjust forecasts as needed. This proactive approach helps in managing resources efficiently and supports the organization in achieving its mission despite the leadership changes.?

Preparing for a Smooth Transition?

Your role as an interim controller is temporary, but the impact you leave should be lasting. Document all processes, decisions, and changes made during your tenure. Create comprehensive handover notes for the incoming controller to ensure a seamless transition. Your goal is to leave the organization in a stronger position than you found it, with clear records and robust systems that facilitate continuity. A well-prepared transition plan will ease the onboarding process for your successor and contribute to the long-term stability of the nonprofit.?

There’s no better seat in the house when it comes to truly providing crucial leadership and stability needed during moments of transition. Done well, your work will have a remarkably positive impact on your nonprofit’s mission and the community it serves for years to come.?