A Modern Nonprofit Podcast · The Charity CFO, LLC

Episode 141: What Every New Nonprofit CEO Should Ask About the Finances (Before It’s Too Late)

·27 min·1 clip

Footnotes can reveal liquidity issues, going-concern doubts, and federal grant exceptions in the single audit.

1. A Modern Nonprofit Podcast focuses on what every new nonprofit CEO should ask about finances before taking over. 2. Tasha Anderson is the host, founder, and managing partner of The Charity CFO, and she frames the topic around the financial red flags she has seen with countless nonprofit CEOs. 3. The episode asks what a new CEO should request in week one and what should be checked again within the first 90 days. 4. Anderson says many financial problems are not fraud or embezzlement, but the result of turnover, too few people, and antiquated systems. 5. She tells new leaders to request the budget, then ask when it was last approved, who prepared it, and which stakeholders signed off on it. 6. She warns against rolling forward last year’s template when fundraising is behind or expenses are rising. 7. Anderson also asks whether the budget is a single organizational column or a more detailed budget by program, department, and salary allocation. 8. She recommends getting the last two audits and, when applicable, the Form 990. 9. She says the notes to the financial statements and footnotes often reveal the real story behind the numbers. 10. Those footnotes can show liquidity issues, going-concern doubts, and the management plan meant to address them. 11. She explains that organizations with significant federal funding may receive a single audit with additional procedures and exceptions. 12. She says funder site visits can be more specific to a grant or program than the financial statement audit. 13. Anderson flags delayed financial reporting as a sign of dysfunction, especially when monthly reports fall months behind. 14. She also flags conflicting numbers between development and accounting because the two teams may be using different definitions. 15. Another warning sign is no follow-up on audit recommendations or corrective action plans from prior years. 16. She says vague answers, missing timelines, and unclear ownership often mean the bookkeeping work is beyond the staffer’s skill level. 17. The tone is direct and practical, with Anderson speaking in a conversational, advisory style. 18. The format is a solo guidance episode built around week-one questions and first-90-day checks. 19. New nonprofit CEOs, board members, and finance committee volunteers would get the most from it. 20. People looking for entertainment or a narrative story may skip it.

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