GrowCFO Show #250 Nonprofit vs Corporate Finance: What Really Changes for CFOs? Baz Bedrossian, Interim CFO, COO, Business Consultant
The transition between nonprofit and corporate finance is a pivotal topic for CFOs, as each sector presents unique challenges and opportunities. In this episode, Baz Bedrossian—Interim CFO, COO, and Business Consultant—draws on his extensive experience in both worlds to illuminate the similarities and differences. Bedrossian emphasizes that while the core financial principles remain consistent, nonprofit roles demand heightened attention to compliance, regulation, and the management of restricted funds. He also highlights the importance of adaptability, as nonprofit CFOs often engage more directly in fundraising and grant management, requiring a broader skill set.
Bedrossian’s insights reveal that, despite the sectoral differences, the fundamentals of cash flow management, stakeholder communication, and strategic leadership are universal. However, nonprofit CFOs must navigate more complex reporting requirements, manage multiple boards and committees, and ensure that funds are used in accordance with donor restrictions. For finance professionals considering a move between sectors, Bedrossian’s experience offers practical guidance on building sustainable financial models and maintaining operational excellence in any environment.
Key topics covered:
- Compliance and regulation are more stringent in nonprofit organizations
- Managing restricted funds and detailed grant reporting is critical
- Cash flow management is challenging due to irregular funding sources
- Nonprofit CFOs often participate directly in fundraising and grant applications
- Non-financial KPIs and stakeholder management are more prominent in nonprofits
- Core financial principles and leadership skills remain consistent across sectors
Links
Timestamps
- 0:16:37 Key differences between nonprofit and corporate finance roles
- 0:18:50 The CFO’s involvement in fundraising and grant management
- 0:20:23 Managing restricted funds and compliance in nonprofit organizations
- 0:24:48 Reporting on non-financial KPIs and statutory requirements
- 0:29:06 Cash flow management strategies for nonprofits
- 0:31:28 Tips for new nonprofit CFOs on building sustainable financial models
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