Across the Not-for-Profit sector, accounting and finance teams can often find themselves stuck in crisis mode, without a way forward or resources to solve their problems. At other times, teams can navigate the status quo, but growth or improvement is out of the question. In either instance, NFPs can find themselves in the common position of being stretched too thin. What solutions are out there?
Jason Sturdevant, NFP Accounting Advisory Manager, and co-host Blakeley Richard, NFP Accounting Advisory Senior Associate, join forces to discuss some examples of NFP accounting teams that were struggling to juggle day-to-day needs with broader compliance or strategic goals. Jason and Blakeley will also highlight a couple instances in which NFPs leveraged Cherry Bekaert’s Accounting Advisory team to overcome staffing challenges, complex accounting matters and organizational barriers to move toward thriving.
As part of Cherry Bekaert’s Not-for-Profit podcast series, this episode covers:
- Navigating the challenges of turnover in key finance positions
- Working through common trouble areas for colleges and universities
- Tackling technically complex tasks with limited capacity
- Creating tools for challenging accounting areas
- Developing plans for strategic growth for finance teams
- Opening up resources for training and team readiness
- Working with Cherry Bekaert’s NFP advisory team on a wide array of projects
- Outcomes for specific organizations that worked with the NFP advisory team
Cherry Bekaert’s Not-for-Profit Accounting Advisory team manages all types of complex technical accounting areas, whether that’s assisting with year-end close, supporting transition of personnel or guiding your finance team through organizational changes. If you have any questions specific to your business needs, contact Blakeley Richard or Jason Sturdevant to discuss your situation.
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MATTHEW SOCHA: Welcome, and thanks for listening to Cherry Bekaert's Not-for-Profit Podcast Series. In each episode, we hear from the best in the business on the latest challenges, trends, and opportunities affecting Not-for-Profit organizations and educational institutions. I'm Matthew Socha, leader of Cherry Bekaert's Not-for-Profit Industry Practice.
JASON STURDEVANT: Hi. Thank you, Matthew. It's a pleasure to be part of this Not-for-Profit podcast series. I'm Jason Sturdevant, a manager in the Not-for-Profit Advisory Group. I have eight years of experience working with Not-for-Profits, both as an auditor and a consultant.
JASON STURDEVANT: My work includes organizations of all sizes: higher education, arts and culture, social services, and foundations. Joining me on this call is Blakeley Richard. Blakeley, would you like to introduce yourself?
BLAKELEY RICHARD: Yes. Hi, my name is Blakeley. I'm a former auditor who now works alongside Jason within our GPS Not-for-Profit Advisory Group at Cherry Bekaert. My main focus is Not-for-Profit organizations.
BLAKELEY RICHARD: I have years of experience in both audit and consulting, ranging from K–12, higher education, and religious organizations to museums. I look forward to talking with you today, Jason.
JASON STURDEVANT: Thanks, and glad to have you with us. You and I have both worked with a wide variety of Not-for-Profit organizations, and we've seen some of the same problems repeatedly, whether that's turnover in accounting teams or organizations wanting to grow but not knowing how. Blakeley, I know you've worked with several colleges and universities in particular. Could you give us an example of the types of problems you tend to see?
BLAKELEY RICHARD: Most of my higher education clients are dealing with significant turnover. The biggest issue is a lack of succession planning and complex areas with no one having the capacity to address them.
BLAKELEY RICHARD: One private university I worked with had turnover across the department, and their controller left with no succession plan in place. There was a delay in hiring an interim controller.
JASON STURDEVANT: That's a common problem. Even as turnover starts to slow in the industry overall, there are still shortages. What were some of the other challenges that university faced?
BLAKELEY RICHARD: They were struggling with endowments and investments and lacked capacity to reconcile and post them on a timely basis. Some items hadn't been completed throughout the year.
BLAKELEY RICHARD: Specifically, they had not completed investment roll forwards for the entire year or any of the unionization of their earnings to specific endowments. They also hadn't done any overall analysis of their endowments.
JASON STURDEVANT: Endowments and investments are complex areas that can get out of hand without consistent attention. What did the university decide to do to solve these problems?
BLAKELEY RICHARD: They engaged our Not-for-Profit Advisory Group. We assisted in preparing their investment roll forwards, the unionization of earnings across all endowments, and the endowment roll forward.
BLAKELEY RICHARD: This allowed the university to focus on day-to-day accounting activities and training for their existing and new staff. It also created opportunities for the university to work on other complex projects they previously lacked capacity for.
JASON STURDEVANT: So they brought in outside help—our team—for specific projects. It enabled them to surge capacity for challenging projects and stabilize their current team.
BLAKELEY RICHARD: With our advisory team, they were able to close the books on time and were ready for the scheduled audit despite having a less experienced team. Finance could focus on other significant year-end close areas while keeping day-to-day activities running smoothly.
BLAKELEY RICHARD: At the end, the VP of Finance was pleased and reached out to thank us for helping them get through those challenges.
JASON STURDEVANT: It can make a huge difference to scale up quickly with a reliable team that has industry expertise. Our Not-for-Profit Advisory Team making a real difference for the university during a challenging transition is great to hear.
BLAKELEY RICHARD: There's another side where organizations have the resources for day-to-day activities but not enough to prepare for the future. Jason, I know you worked with a global health organization that wanted to grow but needed help creating a framework for that growth. Could you tell us more?
JASON STURDEVANT: Sure. This client was a health organization that wanted to grow but lacked the infrastructure and experience to take the next step, so they were stuck in the status quo. They had an interim CFO trying to position the organization for new revenue streams, provide additional employee benefits, and ensure international offices followed appropriate accounting.
JASON STURDEVANT: They realized they couldn't get there on their own and reached out to our Not-for-Profit Advisory Team. We identified several areas to help, including ERP upgrade and optimization, reviewing revenue policies, and creating a revenue recognition checklist for current and future revenue streams.
JASON STURDEVANT: We also provided research on international accounting to support their global team and helped design an indirect cost allocation plan so they were ready to take on private and government grants. This prepared them for new revenue streams.
BLAKELEY RICHARD: It's hard for a small team to handle day-to-day operations while also addressing the areas you mentioned. Minimal guidance makes that even harder.
JASON STURDEVANT: Exactly. It was key to develop tools to help them handle additional revenue streams, including grants, and to do so with confidence. We streamlined their day-to-day processes with ERP enhancements while helping their team focus on today's needs and preparing a clear path for the future.
BLAKELEY RICHARD: In both cases we discussed, and with many other clients, even strong Not-for-Profit finance and accounting teams sometimes need help navigating change and growth. Our Not-for-Profit Advisory Team can be a valuable resource for making that happen.
JASON STURDEVANT: It makes a difference to have a team with broad industry experience that can scale up quickly, whether the need is due to personnel changes, a desire to expand, or to right the ship. Thanks, Blakeley, for joining me and sharing about what our Not-for-Profit Advisory Team can do.
BLAKELEY RICHARD: Thank you, Jason. It's been a pleasure.
JASON STURDEVANT: For any Not-for-Profits that want to see how our Not-for-Profit Accounting Advisory Team can help, head over to CBH.com and search "NFP accounting as a service" or "NFP advisory" in the search bar. You can also reach out to our team through the links in the episode notes.
JASON STURDEVANT: To close, in honor of Matthew Socha, we have a dad joke. Blakeley, what happened to the man who drank a full bottle of invisible ink?
BLAKELEY RICHARD: I don't know.
JASON STURDEVANT: He's still waiting to be seen at the hospital.
BLAKELEY RICHARD: Love it.
JASON STURDEVANT: It's a groaner. Thanks again for your time.
BLAKELEY RICHARD: Thank you.
