by Yvette LeGear Hartsfield, MA, CFRE, CAP, Vice President, Campaigns
In every nonprofit organization, fundraising and finance teams share a common goal: ensuring the organization has the resources to fulfill its mission and create lasting impact. Yet despite this shared purpose, the relationship between them can be one of the most challenging to navigate.
Fundraising professionals focus on generating revenue, building donor relationships, creating opportunities, and inspiring investment in the mission. They are often looking ahead, identifying possibilities and pursuing new sources of support. Finance professionals are responsible for protecting the organization’s financial health, maintaining accurate records, managing cash flow, ensuring compliance, and providing the fiscal oversight necessary for sustainability. One team is often focused on what is possible, the other on what is financially responsible.
These different perspectives are not opposing forces. They are complementary strengths. The challenge arises when communication breaks down, expectations are unclear, or teams operate in silos. Disagreements over revenue projections, gift restrictions, event expenses, and more can create frustration and undermine organizational effectiveness.
Building A Better Relationship Between Fundraising and Finance
Start with practical, consistent collaboration. Here are six action items to build connection more than competition:
1. Schedule regular check-ins. Establish monthly meetings between fundraising and finance to review revenue, expenses, cash flow, and upcoming fundraising activities.
2. Develop shared reporting. Create dashboards or reports that allow both teams to track fundraising goals, actual revenue, outstanding pledges, restricted gifts, and expenses.
3. Involve finance early. Include finance in the planning of campaigns, special events, grants, and major gift proposals to ensure budgets and financial commitments are realistic.
4. Establish clear gift processes. Agree on procedures for gift entry, acknowledgments, restrictions, pledge tracking, and reconciliation. Everyone should understand how gifts move from receipt to reporting.
5. Create shared goals. Measure success beyond dollars raised. Include donor stewardship, net event revenue, fundraising return on investment, budget performance, and long-term sustainability.
6. Build relationships beyond the numbers. Encourage cross-departmental learning so finance understands fundraising strategy and fundraisers appreciate the importance of financial controls.
Partners, Not Rivals
Successful nonprofits recognize that fundraising and finance are not separate functions competing for influence. They are strategic partners. When these teams communicate openly, respect each other’s expertise, and share accountability, they strengthen donor confidence, improve financial decision-making, and create a more sustainable organization.
A strong fundraising program brings resources through the door. A strong finance team ensures those resources are stewarded wisely. Together, they make the mission possible.
Do you want to dive deeper into how to improve your fundraising department, including in its internal relationships? Consider Let’s Build Hope’s Crush Course, a fully online learning experience that guides you step-by-step through changing the way your organization approaches fundraising…and growing revenue as your reward!Â
Looking for in-person inspiration? Book our CEO, Linda B. Haley, to speak to your board or at your next event!