An Executive Director's Guide To Financial Leadership

Executive Directors of CDCs and other nonprofits wear many hats, but one of their most important roles is to provide financial leadership for their organizations. Distinct from the day-to-day tasks of financial management, financial leadership “is guiding a nonprofit organization to sustainability,” according to the Nonprofit Quarterly (NPQ). 

An Executive Director’s Guide to Financial Leadership, an NPQ publication, explains what financial leadership looks like, the specific functions it entails and how Executive Directors should approach financial leadership to bring sustainability to their organizations. The authors cover eight key business principles that should guide financial leadership practice for every executive director. 

The 15-page guide is a quick and insightful read. Using commonsense, straightforward language, the authors explain the importance of tasks like annual budgeting, projecting and managing to cash flow and reserves, and board reporting. They offer points to consider, such as whether income diversification is right for your organization, and tips for effective approaches. Whether they need “Financial Leadership 101” or simply a refresher, any nonprofit Executive Director can benefit from this information-packed handbook.