Why You Should Take Joe in Finance Out for a Cup of Coffee

There are a lot of things we know are good for us, but we never seem to get around to them — like getting the car serviced regularly, booking that annual physical, cleaning the windows in your home — and finally connecting with Joe in Finance.

In talking with stations around the country, I’ve come to learn that only rarely are folks in Development and Finance best friends forever (BFFs). 

In my casual survey of development professionals, everyone agreed that having a relationship with finance would be beneficial, but rarely had anyone taken the first step.

The clawback of federal funding creates a unique opportunity for you to initiate a relationship with your peer in the Finance Department, if you’re not already the best of friends.

If ever there was a time to get to know Joe in finance, it’s now!

Here’s why:

Reason #1: As a development professional, it’s imperative that you understand how the federal funding cuts are impacting your organization as a whole.  Working in partnership with your peer in Finance you can craft this narrative for your donors and supporters.

Reason #2: Finance is one place you can go to when building a case for support at any time, not just in the wake of federal funding cuts. As one person put it to me: “The Education Department can tell you what they’re doing, but the Finance Department can tell you what it’s going to take to fund it.”

In this scenario, having the information from both Education and Finance will help you build a stronger case for giving that you can use in your next email or fundraising campaign.

What else can you accomplish together? 

I heard the same recommendation from a number of stations: The General Manager(GM), Development, and Finance should meet at least quarterly. 

These quarterly meetings are an opportunity for you to all sit down together and:

• Review year-to-date budget — both the cost and revenue side. What are actuals compared to projections?
• A regular review of the trailing 12 months is best practice in most businesses, but something that is far less common in non-profits of all stripes. Add this to your quarterly agenda.
• Finally, sync up on what the balance of the fiscal year looks like — again, both on the cost and revenue side. One development professional shared with me that they hadn’t considered the added expense related to the overtime required for the timely processing of the increased number of gifts that have come in, as a result of donors and supporters answering the call in this unprecedented time of need.

These quarterly check-ins between the GM, Finance and Development will increase shared responsibility and ownership of the budget, as well as more transparency. 

I was surprised to learn that at many of the stations I spoke to Development is carefully tracking the revenue they raise, but they’re not monitoring their expenses in the same manner. It’s imperative that Development is responsible for both sides of the equation. This is one area that your Finance partner(s) can really help you out. Engage with your Finance team to help you figure out the most efficient way to track this. They may even already have a report they’re using that they can simply share with you.

With many stations just wrapping up Q1 of the new fiscal year, this is an opportune time to initiate these quarterly financial reviews.

How to get started

Initiating any new relationship simply requires someone to take the first step. Why not you? Suggest lunch or coffee with your peer in Finance. Lead with curiosity. Let them know what’s on your mind. Tell them that you’re looking to understand how they look at your budget and what things they pay attention to. Maybe even share this article as a conversation starter.

One success story

One organization that’s breaking the mold is the ETV Endowment of South Carolina, where Lauren Chivers, Financial Officer, is embedded with the Endowment’s Development team. 

Lauren shared a common misconception that Finance’s role is to be a “stopper,” the spending police, or a paternalistic overlord who knows what’s best for you. But Lauren sees her role very differently. She sees her role as one that partners with Development in helping them find the right solutions and achieve their goals. This unique structure and the strong bonds between Development and Finance at the ETV Endowment of South Carolina make them one of the most integrated and successful teams I’ve had the pleasure to work with. And their success is backed up by their strong financials.

What’s keeping you from being BFFs with Joe in Finance? What would you like to have more visibility into?