Nonprofit CFOs and CPAs Struggle as Personnel Expenses Consume 50-90% of Budget – Outsource CFO Services To Get Help
Pune, India, August 8, 2023: Nonprofit organizations are facing a significant financial hurdle as personnel expenses continue to account for a substantial portion of their budgets, ranging from 50% to as high as 90%. This pressing issue has prompted nonprofit CFOs to seek solutions to allocate resources effectively while maintaining their core missions. To address this challenge, IBN Technologies is stepping in as a valuable partner, providing Outsourced CFO services.
In a recent report published by the CPA Journal , the alarming prevalence of personnel expenses consuming substantial portions of nonprofit budgets has emerged as a major concern within the sector. This financial burden acts as a roadblock, impeding nonprofits from channeling funds efficiently toward vital programs and initiatives.
"At IBN Technologies, we recognize the pivotal role nonprofits play. Our aim is to empower CFOs and CPAs of nonprofit organizations with the necessary back-end operations support, enabling them to refocus their energies on their core missions," stated Ajay Mehta, CEO of IBN Technologies.
The financial landscape for nonprofits has become increasingly complex, with a surge in unfunded mandates over the past few years. Minimum wage hikes, rising costs of living, health insurance obligations, and equity details have all placed additional strain on the already tight budgets of these organizations. As a result, nonprofit CFOs find themselves grappling with an urgent need to efficiently manage resources while ensuring the continuity of crucial initiatives.
To compound these difficulties, turnover and vacancies within nonprofit teams have intensified the pressure on existing personnel, demanding greater output with limited resources. Nonprofit CFOs now face the uphill task of balancing operational needs while adhering to compliance standards and maintaining fiscal responsibility.
IBN Technologies, a recognized leader in outsourced financial solutions, stands ready to address this challenge head-on. With a deep understanding of the unique financial dynamics nonprofits face, IBN Technologies offers a range of specialized Outsourced CFO services tailored to provide strategic guidance and support.
Crafted exclusively for the distinct requirements of nonprofits, the company's CFO services provide a comprehensive range of solutions, including bookkeeping services , adhering to US GAAP for nonprofit organizations.
The role of CFOs has evolved beyond traditional financial responsibilities, now extending to driving digital transformation, overseeing analytics and dashboarding, navigating complex regulatory environments, and spearheading diversity, equity, inclusion, and belonging (DEIB) initiatives, as well as environmental, social, and governance (ESG) efforts. Additionally, CFOs remain responsible for transactional activities including maintaining cash flow, and financial reports , collaborating with auditors, and implementing new accounting standards.
In the current landscape, nonprofit stakeholders, including donors, funders, community leaders, and board members, demand an unprecedented level of transparency and accountability.
Ajay Mehta, further explains, "Today, CFOs play a pivotal role that goes beyond traditional financial responsibilities. Our commitment is to deliver comprehensive support that empowers these organizations to flourish."
Outsourcing back-end financial and nonprofit accounting helps CFOs and CPAs strategically manage their resources while also prioritizing mission-driven activities. Leveraging the expertise of external, offshore partners empowers them to navigate financial complexities, adhere to regulatory mandates, and make well-informed decisions that propel their organizations forward - without eating the major pie of their budgets. Discover more in a case study by IBN Technologies on how it has helped a CPA firm in Nonprofit Accounting.
IBN Technologies LLC is an outsourcing specialist company with clients in the United States, the United Kingdom, the Middle East, and India. The quality of IBN Tech procedures is guaranteed by ISO 9001:2015, 27001:2022 as well as a CMMI-5 certification. In its more than 24 years of existence, IBN has become a leading IT, KPO, and BPO outsourcing specialized company in the Finance & Accounting, CPAs, Hedge Fund & Other Alternative Investment business, Banking, Travel, Human Resource & Retail Industry sectors.
