Why Nonprofits Need Financial Controllers Even Without a Full-Time Team

Managing finances is one of the most critical aspects of running a nonprofit, and having a nonprofit controller can make all the difference. Many small to midsize organizations still believe they need a full-time finance team to stay financially responsible—but that’s no longer true.

In 2025, more nonprofits are finding smart ways to stay financially healthy without the overhead of a full-time staff. A nonprofit controller, even one working in a fractional or outsourced capacity, can provide the financial oversight and reporting needed to maintain donor trust and meet compliance standards.

At The Finance Group, we specialize in helping nonprofits navigate this exact challenge. Our fractional finance professionals partner with mission-driven teams to build systems, improve reporting, and strengthen compliance—without the cost of hiring in-house. Whether your organization is in a growth phase or simply needs better financial structure, we provide controller-level expertise tailored to your budget and goals.

What Is a Nonprofit Controller?

A nonprofit controller is a finance professional who oversees the day-to-day financial management of a nonprofit organization. Their responsibilities go beyond bookkeeping. They help establish internal controls, prepare and review financial statements, support budgeting, and ensure compliance with laws and accounting standards.

Think of the controller as the bridge between tactical accounting and strategic financial planning. In a nonprofit, this role is essential for ensuring transparency, accuracy, and fiscal responsibility, all of which are key to building donor trust and strong board governance.

However, hiring a full-time controller isn’t always realistic for organizations with limited budgets. That’s where flexible financial solutions come into play.

How a Nonprofit Controller Fits into Shared Financial Roles

For nonprofits without a full-time finance team, sharing financial responsibilities among staff and board members can be an effective first step. With clear roles and responsibilities, organizations can maintain strong financial health even with a lean internal team.

Here are some common roles:

• Board Treasurer: Provides financial oversight, approves budgets, and reviews financial reports

• Executive Director: Oversees high-level planning and collaborates with finance consultants or service providers

• Bookkeeper: Manages transactions, reconciliations, and day-to-day recordkeeping

• Accountants or Tax Preparers: Step in for audits, tax filings, and annual reports

• Fractional Controller or CFO: Offers advanced financial support like forecasting, reporting, and compliance reviews

In our experience supporting nonprofit teams, this model works well when paired with clear internal policies and regular communication between leadership and finance.

The Rise of Fractional Controller Services in Nonprofits

Many nonprofits today are turning to fractional controller services. This model allows organizations to work with experienced financial professionals on a part-time or project basis. A nonprofit controller engaged in this way brings the same level of expertise as a full-time employee, but under a more flexible and cost-efficient arrangement.

Here are a few of the key benefits:

• Access to Expertise: Gain a seasoned financial leader without the cost of a full-time salary

• Strategic Financial Insight: Improve budgeting, cash flow forecasting, and financial analysis

• Compliance Confidence: Stay on track with reporting requirements and audit readiness

• Scalability: Services can scale with your budget, seasonality, or funding cycles

At The Finance Group, we often support nonprofits that need more than bookkeeping but aren’t ready or able to hire a full-time controller. Fractional services have proven to be a right-sized solution, especially when integrated with HR, payroll, and compliance support.

How a Nonprofit Controller Uses Technology to Improve Financial Management

Technology is one of the most powerful tools available to nonprofit teams. With the right systems, organizations can automate workflows, reduce manual errors, and gain real-time insights into their financial position.

Some high-impact areas where technology is transforming nonprofit finance:

• Automated accounting workflows for bookkeeping, payroll, and reconciliation

• Grant and fund tracking to monitor restricted dollars and reporting deadlines

• Integrated CRM and donation platforms to simplify revenue reporting

• Cloud-based dashboards for instant visibility into cash flow and budget performance

We’ve seen how even modest improvements, like shifting from spreadsheets to cloud-based solutions, can create significant time savings and greater financial clarity. A nonprofit controller can evaluate your current systems and recommend improvements that match your team’s capacity and goals.

Best Practices in Nonprofit Financial Reporting

Timely, accurate, and transparent financial reporting is crucial for building credibility with donors, boards, and grant makers. Yet many nonprofits still struggle to produce reports that are both actionable and easy to understand.

A nonprofit controller plays a vital role in improving reporting:

• Customized Reporting: Tailors reports for board members, program leaders, and funders

• Clear Communication: Translates complex data into plain language and visuals

• Linking Financials to Impact: Connects funding with program outcomes to support storytelling and fundraising

• Risk Awareness: Flags financial concerns early to support better decision-making

Small changes, like setting a monthly reporting cadence or redesigning board dashboards, can dramatically improve how stakeholders engage with your financials.

Strong Financial Policies Without a Full-Time Team

You don’t need a large team to practice strong financial governance. What you need is discipline, documentation, and regular review.

Here are some best practices we often implement with our nonprofit clients:

• Documented Financial Policies: Covering budgeting, procurement, internal controls, and expense approvals

• Routine Reviews: Comparing budget to actuals monthly or quarterly

• Separation of Duties: Basic safeguards, like separating check writing from approval, help prevent fraud

• Board Involvement: Regular finance committee meetings to review financials and provide oversight

Establishing this structure builds long-term financial maturity, even for small teams.

Outsourcing as a Smart Strategy

Outsourcing financial tasks is not a compromise, it’s a smart and proactive decision. For nonprofits operating with limited internal capacity, outsourcing can create efficiencies, improve accuracy, and reduce risk.

Here are common functions to outsource:

• Bookkeeping and payroll

• Audit prep and tax filings

• Budget planning and forecasting

• Financial analysis and board reporting

Bringing these functions under a unified strategy—led by a fractional CFO or nonprofit controller—helps ensure consistency and clarity. It also frees up staff to focus on program delivery, partnerships, and community impact.

Why This Matters More Than Ever in 2025

Expectations for financial transparency and performance are rising. Donors want more detailed impact reports. Grantmakers require stronger reporting. Boards are asking deeper financial questions.

Increased scrutiny means nonprofits need to demonstrate financial responsibility, regardless of team size. A nonprofit controller brings the expertise and structure needed to meet those expectations while supporting long-term sustainability.

Build Financial Strength Without the Overhead

At The Finance Group, we believe nonprofits shouldn’t have to choose between mission and financial discipline. With the right strategy, you can build financial systems that support both.

Working with a nonprofit controller—whether fractional, part-time, or project-based—gives you access to essential financial oversight without the commitment of a full-time hire. By combining shared responsibilities, smart technology, and outsourced support, your organization can gain the control, clarity, and compliance it needs to thrive.

Ready to strengthen your nonprofit’s financial foundation?

Let’s talk about how fractional controller services can fit into your mission-driven team. Contact us today to get started.