M+M 014: 3 The #1 Reason ED’s Feel Financially in the Dark (and How to Fix It)
- Stephen Newland
- Oct 3
- 4 min read
Why Executive Directors Struggle With Financial Clarity
Most organizations do a decent job at producing financial reports.
But the problem is most reports are built for compliance not actionable insights that you can use to make decisions with.
They get emailed out each month, checked off a to-do list, and filed away. No conversation. No context. No forward-looking insight.
This leaves many Executive Directors feeling like they’re flying blind.
They see the numbers, but they don’t understand what they mean or how to use them to move their organization forward.
And when leaders don’t feel comfortable asking questions, the cycle continues.
The Cost of Poor Financial Visibility in Nonprofits
When financial conversations don’t happen or they stay reactive instead of proactive, here’s what happens:
Leaders hesitate to make hiring or program decisions because they don’t trust the numbers.
Boards stay stuck in the weeds instead of providing strategic direction.
Opportunities to grow or cut costs slip by unnoticed.
This almost always results in a nagging sense of being “in the dark” about money, even when reports are technically being produced.
I’ve met with other 50 Executive Directors or CEO’s and the vast majority feel this way.
What leaders need isn’t more data. It’s the right conversations, in the right rhythm, with a trusted resource who can help translate numbers into action.
How to Create a Cadence of Financial Conversations
The simplest way to fix this problem is to build a rhythm of financial conversations.
Here’s what that can look like:
Monthly check-ins with your finance lead (staff, board treasurer, or a fractional CFO). Review reports together, not just via email.
Three core questions every month:
What looks different from last month?
Where are we headed over the next three months?
What’s causing the biggest gaps vs. our plan?
Forward-looking insights added to every report package. A 12-month cash forecast provides future visibility into where the organization is headed based on decisions it’s making today. It helps leaders anticipate instead of react.
When leaders have this cadence, they don’t just read reports - they use them.
How One Leader Gained Confidence
I worked with an organization that was in a tough financial spot. They always felt behind financially.
They were producing reports, but leadership avoided them.
They were amazing at their mission, but organizational finances weren’t something they had a ton of experience with even though they were doing nearly $1m in revenue.
When we started meeting monthly, reviewing reports in plain language, and adding a simple cash forecast, something changed.
The leader told me it was the first time she felt confident and in control of her finances.
In future meetings, the conversations turned into very strategic discussions about what was driving her organization forward.
We identified one key activity that was the engine for moving the organization forward. That was getting her out of admin work and more into the core work the organization did.
Within three months, morale of her employees improved and revenue increased. She was operating in her zone of genius all because we had a regular call to discuss financial performance and the risks + opportunities the finances were telling us about the organization.
That shift came not from more data, but from consistent conversations and a focus on forward-looking clarity.
Why Consistent Financial Reviews Matter for ED's
Feeling in the dark isn’t a leadership flaw. It’s a priorities flaw. I know there’s only so much time in the day and there are always more fires to put out than time it feels like…
If you’re an Executive Director, here’s why regular financial reviews matter:
They help you catch risks before they become crises.
They give your board the clarity they need to focus on strategy.
They reduce your stress by replacing guesswork with clear answers.
You don’t need to master every detail of finance. You just need space to ask questions, reflect on the answers, and connect the dots between the numbers and your mission.
One of my favorite pastors has used this line “Nobody has time to shower, but we seem to make time every day for it”.
The same should be true each month for reviewing your financial reports in a space where you can ask questions.
Turning Confusion Into Confidence
If you’ve been feeling like you’re flying blind, you’re not alone.
The fix isn’t complicated:
Review your reports with a trusted partner.
Build a consistent monthly rhythm.
Make sure forward-looking tools (like a cash forecast) are part of the conversation.
When you do, you’ll see the difference it makes.
You’ll feel more confident, your board will feel more aligned, and your funders will feel more trust.
It frees you up to focus on what you actually signed up for - leading your mission forward.
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