Amy Omand, Fractional CFO at 7 Seat Consulting, shares her journey working with not-for-profits. Topics include budgeting challenges with an ice cream line launch, the role of finance in education, differences between nonprofit and for-profit FP&A, cash flow management at nonprofits, B Corporation certification, and the comfort in being a numbers nerd.
Starting budgeting with true assumptions and using a bottoms-up approach is crucial in financial analysis.
Financial professionals should align with organizations that have a mission meaningful to them, combining financial expertise with social goals in non-profit finance.
Deep dives
The importance of starting with true assumptions in budgeting
Amy shares her experience of working on the capital steering committee at Dryer's Ice Cream, where marketing teams would start with desired ROI and backward map the financial analysis. She emphasizes the importance of starting budgeting with true assumptions and using a bottoms-up approach. Amy's key takeaway is the recognition of the people aspect in budgeting and the need to manage expectations and navigate within the context of different stakeholders.
Transition from for-profit to non-profit
Amy explains her decision to transition from for-profit to non-profit, driven by her passion for the social responsibility of business. She shares her experience at Berkeley, where she worked on projects that combined financial analysis with social impact. Amy emphasizes the need for financial professionals to align with organizations that have a mission meaningful to them personally, combining financial expertise with social goals.
Key differences and similarities between non-profit and for-profit finance
Amy discusses key differences and similarities between non-profit and for-profit finance. She dispels the myth that non-profits lack strategic thinking and highlights revenue recognition challenges in budgeting for non-profits. Amy also discusses the collaborative culture in non-profits and the importance of managing philanthropic restrictions. Key metrics in non-profit finance include fundraising, grant management, reserve levels, and cash flow.
Tips for successful non-profit FP&A
Amy offers advice for FP&A professionals in the non-profit sector. She emphasizes the importance of organizational and data management, striving for 'one version of the truth' in reporting and analysis. Amy recommends gaining knowledge about restricted revenue tracking, as it is a significant aspect of budgeting in non-profits. She suggests getting involved as a volunteer on non-profit boards to gain hands-on experience and give back to the community.
“One of the myths I'd love to dispel is that nonprofits are not strategic. People think we aren’t forward thinking or just scrapping for change and trying to get things done. I've had the honor of working with organizations where we really focus on our mission in a nonprofit context in a very strategic way.”
You don’t want to miss this masterclass with Amy Omand. Omand is Fractional CFO, at 7 Seat Consulting, working with not for profits getting from early to mid-stage growth. In this episode she reveals her journey from managing FP&A at Dreyer’s Grand Ice Cream (bought by Nestle) to former CFO of New Schools Venture Fund and setting up her business focused on not-for-profits.
In this episode:
Dreyer's ice cream Budgeting Experience - the problems that can melt financial analysis with a new ice cream line launch
Passion for K12 education and the finance factor in education
The differences-and similarities- between nonprofit and "for profit" FP&A
Why cash is (still) king at nonprofits
Restrictions placed on how money is spent by nonprofits
Taking Revolution Foods, a Healthy School Lunch Company, through their first B Corporation certification