For nonprofit leaders, financial management is rarely what drew them to the work. Yet it’s often what determines whether an organization whether an organization can grow, attract new funding, and ultimately serve more people. The tension between mission-driven leadership and sound fiscal operations is one that countless organizations face—especially those in the $2–$5 million range trying to scale.
In a recent webinar hosted by BTQ Financial, Ivy Gamble Cobb, CEO and co-founder of The Family Center—a 32-year-old New York City nonprofit serving vulnerable families—sat down with Naima Chisolm, BTQ’s Director of Business Development, to share how outsourcing their finance department transformed the trajectory of the organization.
What began as a $3 million operation running on Excel spreadsheets is now a $6.5 million organization with two licensed mental health clinics and a diversified funding portfolio.
The Breaking Point: When Internal Finance Couldn’t Keep Up
When Ivy took over as Executive Director of The Family Center in 2006, the fiscal department consisted of one and a half people. The organization managed a complex web of federal, state, and city contracts—none of which aligned with their fiscal year—each carrying different reporting requirements.
Finding a single person who could handle both big-picture strategy and day-to-day tasks like voucher processing proved nearly impossible. Even investing in financial management software wasn’t the answer without the right people to run it. Ivy quickly realized the existing model had critical vulnerabilities:
- Everything depended on one person—a single point of failure
- The executive director’s time was consumed by financial oversight instead of fundraising
- The organization couldn’t pass what Ivy calls the “hit by a bus theory”—if that one person left, operations would collapse
- Financial data lived in spreadsheets with no centralized management system
The decision to outsource was one of the first Ivy made in her new role—and one she says she would never reverse.
At $3 million, how much money are you going to be able to really devote to the financial management side? Most of the dollars that we got were for program services.” — Ivy Gamble Cobb, CEO, The Family Center
Using Financial Data to Diversify Funding Sources
The Family Center was originally founded to serve families impacted by HIV and AIDS. But Ivy and her team recognized early on that their model could apply to families dealing with substance use, domestic violence, and other destabilizing factors. The challenge was proving it to new funders.
Having reliable, well-organized financial data made all the difference. By pairing program outcomes with fiscal reporting, The Family Center could walk into meetings with private foundations and present a clear, data-backed case:
- What government contracts were covering—and where the funding gaps existed
- The cost-benefit analysis of their service model
- How private support would complement (not replace) government funding
- Measurable outcomes tied to real dollar amounts
This ability to quantify impact and funding needs helped The Family Center expand beyond HIV services and attract a diversified base of public and private funders.
“Through being able to show our program data along with our financial data, we could show the cost benefit of this model that we had developed.” — Ivy Gamble Cobb
Turning Audit Season from “Hell” into a Seamless Process
Before outsourcing, audit preparation was one of the most painful periods of the year. With financial data scattered across Excel files and limited internal staff, pulling together the required documentation was an enormous burden.
Since partnering with an outsourced finance team, The Family Center has experienced consistently clean audits, timely 990 filings, and a process that no longer disrupts operations. The board receives audit documents promptly and can meet with both the auditor and the financial team to get questions answered—all without scrambling.
For funders who rarely visit organizations on-site, timely and accurate financial reporting is often the primary lens through which they evaluate an organization’s credibility.
“Since our partnership with BTQ, our audit process has been seamless. It’s been timely. We’ve not had any major findings, major deficiencies, none of that.” — Ivy Gamble Cobb
Creating a Financial Narrative That Builds Donor Confidence
Ivy emphasized that donors and funders want more than a receipt. They want to understand how their dollars are being used and that those dollars are making a measurable impact. Financial storytelling—connecting program outcomes with fiscal transparency—is essential to building and maintaining funder relationships.
With dashboards and regular financial reporting in place, The Family Center can respond to funder inquiries quickly and confidently. Whether a foundation wants to see the financials for a specific program or the board needs a cash flow update between meetings, the data is always accessible and up to date.
This level of transparency has shifted the dynamic from reactive reporting to proactive partnership—exactly what funders are looking for.
“At the end of the day, no one wants to be giving into a black hole where there’s no level of confidence that my donation is actually really making a difference.” — Ivy Gamble Cobb
Bridging the Gap Between Mission Leaders and Finance-Focused Boards
Many nonprofit boards are composed of professionals from the finance world—bankers, accountants, CFOs—who speak a very different language than social service providers. For an executive director trained as a social worker, this can create an uncomfortable gap.
Working closely with an outsourced financial partner taught Ivy the language of balance sheets, profit and loss statements, and cash flow analysis. By walking through financial documents before each board meeting, she developed the confidence to engage with board members on their terms. The result:
- Board meetings became more efficient, with less time spent questioning the integrity of the financials
- The board developed trust in the financial management process
- The executive director could present a unified front—mission rationale alongside financial projections—when proposing new initiatives
“They didn’t teach me any of that in social work school. But BTQ taught me that. And so when I sit in the room with my board members and 40% of them are definitely from the finance arena, now we’re able to have a conversation.” — Ivy Gamble Cobb
Making Bold Moves: Real Estate Decisions and Licensed Clinics
Two of the most significant growth milestones for The Family Center—relocating the organization and launching two licensed mental health clinics—were made possible by having strong financial infrastructure in place.
When it came time to move in 2007, the outsourced finance team analyzed every contract and budget to determine exactly how much the organization could afford in rent. A separate space analysis determined how much square footage was needed. Armed with both numbers, Ivy identified their new space in just two weeks—no wasted time on properties that were too small or too expensive.
Launching the licensed clinics was an even bigger strategic bet. Ivy was transparent with the board from the start: the clinics would be a loss leader for three to four years. But with consistent financial reporting at every board meeting, the board stayed the course. The clinics eventually became self-sustaining and opened doors to federal contracts that wouldn’t have been available otherwise.
“When we decided to take on the licensed clinics, I had an opportunity because BTQ was already working with organizations in that space to sit down with other leaders of nonprofits and say, ‘Give me all the pitfalls.’” — Ivy Gamble Cobb
The ROI of Outsourcing: Peace of Mind and Capacity to Lead
When asked whether outsourcing was worth the investment, Ivy was unequivocal. While the upfront cost can appear daunting, she noted that building an equivalent team internally would have been significantly more expensive. More importantly, the return goes far beyond dollars:
- A full team handling accounts receivable, accounts payable, billing, and voucher processing
- Weekly meetings with a dedicated financial partner
- Strategic guidance for budgeting, contingency planning, and new lines of business
- Confidence in the accuracy and integrity of all financial reporting
- Freedom for the executive director to focus on fundraising, partnerships, and mission delivery
Ivy also highlighted the importance of communication. Her team knows exactly who to contact at the outsourced firm for every area—whether it’s accounts payable, client management, or strategic planning. The model doesn’t create distance; it creates structure.
“There are things that keep me up at night. Knowing whether there is integrity in terms of our finances is not it.” — Ivy Gamble Cobb
Navigating Uncertainty: Contingency Budgeting in a Volatile Funding Environment
With the current funding landscape shifting rapidly, The Family Center is already preparing for multiple scenarios as they head into their next fiscal year. Working with their financial partner, they’re developing:
- A baseline budget assuming full funding
- A contingency budget modeling potential cuts
- Staffing impact analyses tied to different funding scenarios
This kind of forward-looking planning is a necessity. And it’s only possible when an organization has the financial infrastructure and partner support to model scenarios quickly and accurately.
“We’re living in a very volatile funding situation where things are changing minute by minute. So we’re already having conversations around contingency budgeting.” — Ivy Gamble Cobb
Full Outsourcing vs. Hybrid: What Works Best?
A common question from nonprofit leaders considering outsourcing is whether to replace their entire finance department or maintain a hybrid model. In practice, most organizations that fully outsource still retain a liaison—someone on-site who manages the day-to-day communication with the finance partner.
At The Family Center, this liaison handles tasks like:
- Routing invoices from vendors to the outsourced team
- Communicating funder-specific nuances (formatting preferences, reporting quirks)
- Escalating issues when government contracts aren’t vouchered on time
The key takeaway: outsourcing doesn’t mean losing control. It means gaining a team while keeping a hands-on connection to the work.
“We always have someone internally who is the primary conduit with BTQ just because sometimes with the funders there are nuances that we may know that we need to share.” — Ivy Gamble Cobb
Ready to Build Your Nonprofit’s Financial Future?
The Family Center’s 20-year journey is proof that the right financial partnership can be transformational—not just for an organization’s books, but for its ability to grow, serve more people, and lead with confidence.
If your nonprofit is struggling with the burden of in-house financial management, facing an increasingly complex funding landscape, or simply looking for the peace of mind that comes with expert oversight, it may be time to explore what outsourced financial management can do for you.
BTQ offers comprehensive outsourced finance and accounting solutions designed specifically for mission-driven organizations.
Whether you need a fractional CFO, full back-office support, or a strategic partner to help navigate your next phase of growth, get in touch with us for the expertise, infrastructure, and hands-on support to help you get there.