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FinancePodcasts#267 Why Nonprofit Finance Is 10 Years Behind and How to Close the Gap with Ilana Esterrich, GrowCFO Mentor
#267 Why Nonprofit Finance Is 10 Years Behind and How to Close the Gap with Ilana Esterrich, GrowCFO Mentor
Finance

GrowCFO Show

#267 Why Nonprofit Finance Is 10 Years Behind and How to Close the Gap with Ilana Esterrich, GrowCFO Mentor

GrowCFO Show
•January 20, 2026•28 min
0
GrowCFO Show•Jan 20, 2026

Why It Matters

Modernizing nonprofit finance is critical for organizations to deliver impact at scale while maintaining fiscal responsibility, especially as donors demand greater transparency and efficiency. By closing the ten‑year gap, nonprofits can better align financial strategy with mission outcomes, ensuring long‑term sustainability and stronger donor relationships.

Key Takeaways

  • •Nonprofit CFOs lag ten years behind for‑profit finance practices.
  • •CFO role shifting from scorekeeper to strategic partner and fundraiser.
  • •Financial rigor requires investing in back‑office infrastructure despite donor limits.
  • •Military leadership principles enhance people‑centric finance management in nonprofits.
  • •Mentoring aims to modernize nonprofit finance skills and legacy building.

Pulse Analysis

Today’s nonprofit CFO must become a forward‑looking architect, blending scenario planning, donor intent analysis, and operational efficiency. Esterrich describes moving beyond traditional accounting to partner with program leaders, development officers, and board members, translating financial data into actionable strategy. She stresses the importance of investing in back‑office technology and staff, even when grant agreements limit administrative budgets, because robust infrastructure enables accurate reporting and cost‑to‑raise‑a‑dollar calculations. By treating finance as a strategic partner, CFOs can help organizations do ‘best with what they have,’ optimizing program delivery while maintaining fiscal health.

Ilana Esterrich, CFO of Planned Parenthood Federation, explains why nonprofit finance lags a decade behind for‑profit practices. She highlights that many charities still view finance as a back‑office function focused on closing books, rather than a strategic engine that drives mission growth. In a competitive donor environment, this gap threatens sustainability, especially when funding streams are restricted and administrative costs are scrutinized. By modernizing financial systems and embedding CFOs in strategic discussions, nonprofits can align fiscal discipline with mission impact, ensuring they generate the surplus needed to reinvest in programs.

To close the ten‑year gap, Esterrich leverages her consulting background and military‑derived leadership principles in a new mentoring program at Grow CFO. She teaches finance leaders how to influence upward, build cross‑functional teams, and communicate financial insights in plain language, echoing the Army’s after‑action review mindset. By fostering a culture of continuous learning, she aims to leave a legacy where nonprofit finance professionals are as agile and data‑driven as their for‑profit counterparts. Executives who embrace this modern, people‑centric approach can accelerate mission impact and secure long‑term donor confidence.

Episode Description

https://www.youtube.com/watch?v=HnQ5K1BNAl8

https://open.spotify.com/episode/0Rtn6WPqsCzQmMDOZOSnmV

Nonprofit finance often lags behind its for-profit counterpart due to structural funding constraints, donor reporting requirements, and historical expectations of finance as a back-office cost center rather than a strategy partner. This episode examines why nonprofit financial leadership is perceived to be about a decade behind and outlines concrete ways to modernize the CFO role—shifting from retrospective accounting to forward-looking strategy, donor partnership, and operational rigor that sustains mission at scale .

In this episode, Kevin Appleby hosts Ilana Esterrich, a GrowCFO Mentor and experienced nonprofit CFO, for a practical discussion on elevating nonprofit finance. Esterrich draws on a career spanning consulting, large corporates, and mission-driven organizations to explain how nonprofit finance must evolve from traditional, retroactive accounting to a strategic, value-creating function. She underscores that “no money, no mission,” and argues for disciplined investment in back-office capabilities—finance operations, legal, and technology—to build a foundation that enables programs to scale sustainably .

Kevin and Ilana discuss the growing expectations on nonprofit CFOs: scenario planning, interpreting donor intent, creative application of restricted funds, and partnering closely with development leaders. Esterrich also emphasizes people-centric leadership, shaped by her military background, and the importance of mentoring CFOs transitioning from “scorekeeper” to strategic leader. The conversation offers actionable insights for closing the perceived 10-year gap with for-profit finance, focusing on operational efficiency, stakeholder communication, and aligning finance with mission outcomes.

Key topics covered:

“No money, no mission”: nonprofits need a growth mindset and disciplined investment in back-office foundations to scale programs responsibly 

Why nonprofit finance lags: CFO roles historically centered on backward-looking reporting versus forward-looking strategic architecture

Closing the gap: scenario planning, clarity on donor intent, creative use of funds, and operational efficiencies that reduce the cost to raise a dollar 

Donor partnership: educating funders on the true cost of delivery and the need to resource “admin” to strengthen mission outcomes 

Evolving CFO leadership: influence beyond finance, managing larger teams, and aligning finance early with strategy discussions  

People-centric finance leadership: mission-first lessons from the military and mentoring the next generation of nonprofit CFOs   

Links

Ilana Esterrich on LinkedIn

Kevin Appleby on LinkedIn

GrowCFO Mentoring

Timestamps: 

0:03:03 — “No money, no mission” and the case for investing in back office to strengthen program delivery 

0:05:59 — Navigating donor-imposed admin limits and bringing donors into the operational reality 

0:07:47 — CFO partnership with development and the shift toward direct donor engagement and reporting design 

0:08:56 — Why nonprofit finance is ~10 years behind and the move from scorekeeping to strategic CFO 

0:11:53 — Mentoring focus: helping CFOs become strategic value creators and people leaders 

0:18:41 — Military-informed leadership principles applied to modern nonprofit finance teams 

Find out more about GrowCFO

If you enjoyed this podcast, you can subscribe to the GrowCFO Show with your favorite podcast app. The GrowCFO show is listed in the Apple podcast directory, Spotify and many others. Why not subscribe there today? That way, you never miss an episode.

GrowCFO is a great place to extend your professional network. Join GrowCFO as a free member today and participate in our regular networking events and webinars. Premium members can also access our extensive training center and CFO Digital Toolkit. You can enroll in our flagship Future CFO or Finance Leader programs here.

You can find out more and join today at growcfo.net

Show Notes

https://www.youtube.com/watch?v=HnQ5K1BNAl8

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https://open.spotify.com/episode/0Rtn6WPqsCzQmMDOZOSnmV

Nonprofit finance often lags behind its for-profit counterpart due to structural funding constraints, donor reporting requirements, and historical expectations of finance as a back-office cost center rather than a strategy partner. This episode examines why nonprofit financial leadership is perceived to be about a decade behind and outlines concrete ways to modernize the CFO role—shifting from retrospective accounting to forward-looking strategy, donor partnership, and operational rigor that sustains mission at scale .

In this episode, Kevin Appleby hosts Ilana Esterrich, a GrowCFO Mentor and experienced nonprofit CFO, for a practical discussion on elevating nonprofit finance. Esterrich draws on a career spanning consulting, large corporates, and mission-driven organizations to explain how nonprofit finance must evolve from traditional, retroactive accounting to a strategic, value-creating function. She underscores that “no money, no mission,” and argues for disciplined investment in back-office capabilities—finance operations, legal, and technology—to build a foundation that enables programs to scale sustainably .

Kevin and Ilana discuss the growing expectations on nonprofit CFOs: scenario planning, interpreting donor intent, creative application of restricted funds, and partnering closely with development leaders. Esterrich also emphasizes people-centric leadership, shaped by her military background, and the importance of mentoring CFOs transitioning from “scorekeeper” to strategic leader. The conversation offers actionable insights for closing the perceived 10-year gap with for-profit finance, focusing on operational efficiency, stakeholder communication, and aligning finance with mission outcomes.

Key topics covered:

  • “No money, no mission”: nonprofits need a growth mindset and disciplined investment in back-office foundations to scale programs responsibly 

  • Why nonprofit finance lags: CFO roles historically centered on backward-looking reporting versus forward-looking strategic architecture

  • Closing the gap: scenario planning, clarity on donor intent, creative use of funds, and operational efficiencies that reduce the cost to raise a dollar 

  • Donor partnership: educating funders on the true cost of delivery and the need to resource “admin” to strengthen mission outcomes 

  • Evolving CFO leadership: influence beyond finance, managing larger teams, and aligning finance early with strategy discussions  

  • People-centric finance leadership: mission-first lessons from the military and mentoring the next generation of nonprofit CFOs   

Links

  • Ilana Esterrich on LinkedIn

  • Kevin Appleby on LinkedIn

  • GrowCFO Mentoring

Timestamps: 

  • 0:03:03 — “No money, no mission” and the case for investing in back office to strengthen program delivery 

  • 0:05:59 — Navigating donor-imposed admin limits and bringing donors into the operational reality 

  • 0:07:47 — CFO partnership with development and the shift toward direct donor engagement and reporting design 

  • 0:08:56 — Why nonprofit finance is ~10 years behind and the move from scorekeeping to strategic CFO 

  • 0:11:53 — Mentoring focus: helping CFOs become strategic value creators and people leaders 

  • 0:18:41 — Military-informed leadership principles applied to modern nonprofit finance teams 

Find out more about GrowCFO

If you enjoyed this podcast, you can subscribe to the GrowCFO Show with your favorite podcast app. The GrowCFO show is listed in the Apple podcast directory, Spotify and many others. Why not subscribe there today? That way, you never miss an episode.

GrowCFO is a great place to extend your professional network. Join GrowCFO as a free member today and participate in our regular networking events and webinars. Premium members can also access our extensive training center and CFO Digital Toolkit. You can enroll in our flagship Future CFO or Finance Leader programs here.

You can find out more and join today at growcfo.net

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