Technology & Innovation

The balancing act of the nonprofit CFO

Nonprofit CFOs are under extreme pressure to collaborate more and harness AI. How can they navigate these demands in a changing landscape?

July 11, 20255 min read Share

It’s never been tougher—or more rewarding—to be a CFO of a nonprofit. A huge 90% of finance leaders in nonprofits say their profession has undergone significant changes compared with two years ago—a figure that is difficult to ignore.

In the post-COVID world, the nonprofit industry has experienced disruptions in funding and the way its services are used. For many nonprofits, demand is soaring at a rate that exceeds resources—all while digital technologies and AI are changing the game. It’s hard to keep pace. And it’s falling to CFOs to help navigate these shifts.

In this article, we explore the issues facing finance leaders in the nonprofit sector and offer advice on how to overcome them.

Here’s what we’ll cover:

Nonprofit CFOs are being pulled in different directions

By their nature, nonprofits often span a more diverse range of operational pillars than companies in other sectors. Many charities find themselves having to juggle a range of large and often unrelated business units, such as training and education, marketing and fundraising, and clinical research.

Therefore, it’s essential that finance leaders of nonprofits are informed about all these areas. And it’s even more important when every penny counts.

CFOs are feeling this pressure: 70% say it’s difficult to balance the needs and priorities of different stakeholders, and 91% say their role has expanded significantly into non-traditional areas of finance.

They’re more likely than most to be solely responsible for a range of areas outside of the finance department. For example, 40% are focused on diversity and inclusion, 35% are solely in charge of company culture, and 42% head up the ESG agenda.

How can CFOs manage the day-to-day realities of dealing with such a broad remit?

One of the keys is to build a strong core finance team around you, according to British Heart Foundation’s CFO Martin Miles.

“I have the luxury of having a very strong finance team that provides great continuity,” he explains. “I worry less about the basics of finance because I have such good support. I am really freed up to add value in a lot of other ways.”

He adds that in many respects, having to work across different disciplines comes naturally in the nonprofit world, and he advises other CFOs to embrace the challenge.

He adds that in his role, sitting on operations and executive boards—which cover a range of areas such as policy and risk—helps him to have a better view of the wider organization, which is ultimately helpful for the finance department to see where they can best provide support to their peers.

Nonprofits are behind on AI

Nonprofits often fall behind the curve when it comes to technology and innovation, as limited budgets push them to prioritize critical projects and services over investing in experimental tools.

Although this is understandable, underinvesting in technology can leave nonprofits open to the risk of outdated or inaccurate data, as well as leaving them unable to react quickly to unforeseen external factors. Both of these scenarios can seriously undermine a nonprofit’s mission.

Some 84% of finance leaders say they need more technology to help them fulfill their responsibilities, and 88% say there are inefficiencies in their organization that technology could solve.

And the issue extends to AI, too—79% of finance leaders do not feel they’re currently using AI to its fullest potential.

CFOs in any sector face stringent scrutiny on how they spend their money, but in the nonprofit sector, additional regulatory and ethical considerations are at play. This might explain why 30% of nonprofit CFOs say a fear of failure limits the increased use of AI within the finance function, and 27% say budget constraints are a barrier.

At the British Heart Foundation, staff members are beginning to enjoy the benefits of AI productivity tools such as Microsoft Copilot.

“The early adopters of that absolutely love it,” CFO Miles says. “It’s revolutionized their work already in terms of daily productivity.”

But how can nonprofits embrace AI in a more meaningful way? Miles says it’s all about carefully considering how to harness its potential, not about rushing in.

“We’re very conscious not to ask, ‘What can I use AI for?’ but rather, ‘Is there a problem I need to solve for which AI might be the solution?’. We are really focusing on the continuous improvement mindset and trying to find a better way of working.”

For nonprofit CFOs, purpose overcomes pressure

There’s no doubt that being a nonprofit CFO is tough. But it’s no surprise that 95% of them love their jobs and 85% are excited about the future of their professions.

Miles joined the British Heart Foundation after a long career in the private sector.

“Professionally, it’s just as challenging, if not more,” he says. “We often have to manage limited resources and juggle conflicting priorities—we’re running a quarter of a billion-pound retailer, and then there’s the charity side of things. But there’s something about having a really tough day, and then meeting a patient, or hearing about research we’re funding, and you think I’m going to try a bit harder tomorrow because it’s worthwhile.”

Ultimately, the right technology—used thoughtfully—can help nonprofit CFOs do more of what they do best: driving their organization’s mission forward. By embracing tools such as AI, they can unlock efficiencies and insights that allow them to focus on making a difference.

Explore more insights from our research and discover how high-performance finance leaders are accelerating progress here.