Cover of BTQ Financial's 2026 Nonprofit Leaders Report

2026 Nonprofit Leaders Report

05/28/2026 |

2026 Nonprofit Leaders Report

Nonprofit Survey: 85% Planning Mission Expansion

A survey of 100 nonprofit finance and accounting leaders finds mission-driven organizations enter 2026 with unmistakable signs of financial maturity — partnered, stable, and organized for growth even as funding pressures persist.

81%

Nonprofits now work with an F&A partner

Up from 30% in 2025 — outsourced finance went mainstream in 12 months.

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76%

Reported zero voluntary finance turnover

A reversal of the talent strain that defined the prior year.

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85%

Have six months or less of unrestricted reserves

Funding fragility remains despite growth ambitions.

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47%

Drew down unrestricted reserves

To cover operating costs in the past 12 months.

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100 nonprofit finance leaders  ·  Surveyed by BTQ Financial & Cascade Insights  ·  2026

About This Report

The only 2026 benchmark built specifically for mission-driven finance leaders.

A survey of 100 nonprofit finance and accounting leaders, segmented by partnership status, leadership title, and annual revenue. Use it to benchmark your own finance function against mission-driven peers — and to make the case to your board for what to strengthen next.

100Finance leaders surveyed
51%Are CFOs (with 31% CEOs/COOs)
$3M–$150MAnnual revenue range
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Proof Points

The partnership turning point.

Three benchmarks that defined the year. The full report has methodology, segment cuts, and the 2026 playbook.

Source · BTQ 2026 Nonprofit Leaders Report
N = 100 nonprofit finance leaders

+170%

30% → 81% · 2025 to 2026

Partnerships went mainstream

Share of nonprofits working with an F&A partner

30%202581%2026

Outsourced finance is no longer the exception — it is the operating model.

+111%

38% → 80% · 2025 to 2026

The talent crunch broke

Share filling open finance roles within 1–3 months

38%202580%2026

Hiring time more than doubled in speed. The five-month vacancy is no longer the sector default.

+197%

29% → 86% · 2025 to 2026

Audit prep, a partner benefit

Partners cited for audit preparation and support

29%202586%2026

Compliance complexity outran in-house capacity. Audit prep is now a partner-led function.

What You’ll Get

Benchmarks across the 2026 nonprofit finance function.

Where the sector is accelerating, where the gaps still are, and how nonprofit boards are stepping into a more active financial role. The full report has segment cuts by revenue band and partner status.

59%

Rate partner impact significant or transformational

Among partnered nonprofits, 98% report at least moderate improvement.

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40%

Exposed to a 60–90 day government funding delay

And 22% already see payments arrive 60+ days late. Funding fragility is the year's hidden tension.

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79%

Still run finance on manual spreadsheets

Only 18% use dedicated FP&A software. Partnership maturity is outpacing tech maturity.

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76%

Boards now request more detail than standard reports

78% proactively raise sustainability conversations. Active oversight is the new normal.

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85% plan to expand programs. 85% have six months or less of reserves.

Same number, opposite stories. The 2026 Nonprofit Leaders Report explains how partnered organizations are absorbing the gap — methodology, segment cuts by revenue band and partner status, plus the 2026 playbook.

Get the Report →

Your mission is to create a better world. Ours is to help.

BTQ partners with nonprofit finance teams to stabilize operations, strengthen compliance, and unlock the capacity to focus on mission. If you’d like to talk through how the 2026 trends apply to your organization, let’s connect.

Talk to a Nonprofit Finance Specialist
BTQ 2025 Nonprofit Leaders Survey cover

2025 Nonprofit Leaders Report

01/24/2025 |

2025 Nonprofit Leaders Report

Growth Challenges Are 6× More Likely Without a Finance & Accounting Partner

A survey of 100 nonprofit leaders — CEOs, COOs, Executive Directors, and Founders at organizations from $3M to $200M in revenue — on their top financial challenges, talent struggles, and the strategic advantages of outsourcing finance.

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Executive Summary

BTQ Financial (a division of Consero Global) surveyed 100 nonprofit leaders — including CEOs, COOs, Executive Directors, and Founders — about the financial challenges and opportunities shaping their organizations in 2025.

All respondents represent nonprofits operating in large U.S. metro areas, with annual revenues from $3 million to $200 million. Sectors include human and health services, animal welfare, and charitable and social-service organizations.

With nearly one-third of respondents already working with a third-party finance and accounting partner, this report quantifies how those partnerships change the picture — particularly for assessing financial sustainability, producing accurate and timely reporting, and meeting audit and regulatory deadlines. Partnered nonprofits report more accurate budgets and forecasts and greater success meeting regulatory deadlines.

Key Findings

Six numbers that define how nonprofit leaders are navigating 2025.

100%
of nonprofit leaders outsource at least one business function — yet only 30% outsource finance and accounting.

6×
less likely to struggle scaling their financial function when partnered with a finance & accounting provider.

72%
struggle with turnover in the finance function at least occasionally.

36%
frequently or very frequently experience cash-flow issues.

93%
need to reclassify funds more than once per year.

#1
benefit of partnering with a finance & accounting provider: more time to focus on mission-driven activities.

More Than a Hiring Problem

Staffing gaps in the finance function are creating operational risk across the nonprofit sector.

38%
experience frequent or very frequent finance-team turnover.
5 mo.
average time to fill an open finance role.
19 days
average time to complete the financial close.
74%
deal with cash-flow problems at least occasionally.

Staffing challenges in finance ripple directly into operational inefficiency. Nonprofit leaders report it takes an average of 19 days to close the books — delaying critical decisions. About 50% of respondents have 3–5 open positions on their finance teams, and filling them takes roughly five months on average. High turnover compounds the problem: 38% of leaders describe turnover as frequent or very frequent, making it difficult to maintain continuity and expertise.

Time to complete financial close
Time range Respondents
Less than 10 days 9%
11–20 days 55%
21–30 days 27%
Over 30 days 9%
Finance-function turnover frequency
Frequency Respondents
Rarely 28%
Occasionally 34%
Frequently 25%
Very frequently 13%

Accounts receivable

For 93% of respondents, at least a quarter of funding comes from government sources like contracts and grants. Among those, 90% face AR challenges — delayed or rejected invoices, compliance snags — and 31% encounter them frequently or very frequently.

Cash-flow management

Nearly three quarters (74%) of leaders deal with cash-flow problems at least occasionally, and 54% reforecast quarterly or more often. Frequent adjustments constrain long-term planning and financial stability.

Fund reclassification

Over 36% reclassify funds at least quarterly, some monthly. Only 7% reclassify just once a year — a signal that allocation processes still need work at most organizations.

Timely, accurate reporting

Accurate, timely financial reporting and scaling finance to support growth rank among the top five challenges overall — but are materially less severe at organizations already partnered with a finance and accounting provider.

Top Financial Hurdles

Assessing sustainability and risk tops the list — but the gap between partnered and non-partnered nonprofits is striking.

Financial challenges nonprofit leaders face today
Challenge Respondents
Assessing financial sustainability and risk 34%
Ensuring accurate and timely financial reporting 31%
Audit preparation and compliance with regulations 29%
Scaling finance functions to support growth 28%
Establishing well-defined, consistent financial processes 25%
Low or insufficient operating reserves 25%
Staffing and skills gaps in the finance department 20%
Maintaining consistent cash flow 20%
Managing mergers or combinations 20%
Revenue recognition and reconciliation for donations and grants 20%
Adapting to internal changes (restructuring, new leadership) 17%
Managing restricted and unrestricted funds 16%
Efficiently handling accounts receivable and payable 16%
Grant, contract, and government receivables management 14%

Partnered vs. non-partnered: the difference is measurable

Where partnering with a finance & accounting provider changes the picture
Challenge Partnered Not partnered
Ensuring accurate and timely financial reporting 23% 35%
Scaling finance functions to support growth 6% 38%

Nonprofits working with a finance and accounting partner are 6× less likely to struggle with scaling finance to support growth (6% vs. 38%). A similar gap shows up in reporting accuracy: 23% of partnered nonprofits cite it as a challenge, compared to 35% of those without a partner.

Voices from nonprofit leaders

“Conduct regular internal audits or engage external auditors to review financial reports to ensure compliance and transparency of financial data.”

Executive Director, Charitable or Social Services Organization

“We have third-party financial partners which can help us solve these challenges.”

COO, Credit Union or Cooperative

“Addressing skills gaps by hiring specialist financial talent and funding training for current employees.”

CEO, Health and Medical Organization

“Effective management of donor relationships, including tracking donations and issuing receipts.”

CEO, Animal Welfare Organization

Transforming Operations Through Outsourcing

Nonprofits already outsource. Finance and accounting is the remaining opportunity.

Every leader we surveyed (100%) already outsources at least one internal function — IT, data, payroll, legal, marketing, or web. But only 30% outsource finance and accounting, leaving the majority without access to the efficiency gains, expertise, and scalable capacity that a finance partner can provide.

Functions nonprofits currently outsource
Function Respondents
IT support and data management 53%
Legal and compliance services 45%
Marketing, communications, and fundraising 41%
Web and digital services (development) 41%
Program evaluation and reporting 31%
Accounting and financial management 30%
Payroll and benefits administration 30%
Human resources and recruitment 29%
Event planning and management 26%

Most-used outsourced financial services

Among nonprofits that outsource finance & accounting
Service Respondents
Strategic financial planning & analysis 68%
Grant management and reporting 65%
Staff augmentation and fractional CFO 55%
Budgeting and forecasting for programs and operations 42%
Audit preparation and support 42%
Revenue recognition and reconciliation 42%
Cash management and cash flow 35%
Conversion from cash to accrual accounting 35%
Fund accounting and allocation of restricted funds 35%
General ledger cleanup and maintenance 32%
Compliance assistance for nonprofits 26%
Financial due diligence for partnerships or mergers 23%

Finance as a Service (FaaS) for nonprofits

For organizations looking beyond point services, Finance as a Service combines skilled finance professionals, proven systems and technologies, and disciplined processes into a single operating model. BTQ’s FaaS delivery for nonprofits spans three categories:

Finance & accounting

Accounting, planning & budget development, reporting and analysis, accounts payable, accounts receivable, cash management, and audit preparation.

Revenue cycle management

Medical billing self-service portal, guidance on third-party billings, HIPAA-compliant weekly claim submissions, fast remittance posting, claim-resolution support, collection and denial reporting, dedicated client manager, and comprehensive AR reporting.

Grants & contract management

Expense management and allocation, funder submission and processing, compliance and reporting, audit trails, and financial analysis and planning.

Why Nonprofits Partner with Finance & Accounting Providers

Leaders cite time back for mission work as the #1 benefit — followed closely by efficiency, reporting quality, and specialized expertise.

  1. 45% More time for leadership to focus on mission-driven activities
  2. 42% Time savings from streamlined financial and accounting processes
  3. 42% More timely and accurate financial reporting
  4. 39% Access to specialized nonprofit financial expertise
  5. 35% Cost savings from staff and financial systems
Full benefits ranking
Benefit Respondents
More time for leadership to focus on mission-driven activities 45%
Time savings from streamlined financial and accounting processes 42%
More timely and accurate financial reporting 42%
Access to specialized nonprofit financial expertise 39%
Cost savings from staff and financial systems 35%
Ability to make a better case for more funding 35%
Enhanced ability to manage and report on restricted and unrestricted funds 35%
Improved ability to meet financial regulatory reporting deadlines 32%
Support with regulatory compliance and reporting 29%
Preparation and support for audits 29%
Greater continuity with less finance and accounting turnover 29%
Assistance with funder reporting and grant management 23%

Empowering Nonprofits to Make an Impact

Today’s financial challenges demand more than resilience — they demand strategic solutions. By streamlining financial processes, improving compliance, and unlocking specialized expertise, a finance and accounting partner frees nonprofit leaders to focus on their mission-driven work. For the 70% of nonprofits not yet leveraging these opportunities, now is the time.

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About BTQ Financial

BTQ Financial, a division of Consero Global, has been partnering with nonprofit organizations for over 20 years, revolutionizing financial management across the sector. Through a cloud-based platform, BTQ delivers the financial clarity and efficiency needed to move missions forward.

Strategic nonprofit leaders adopt BTQ’s cost-effective Finance as a Service (FaaS) model to free up time and focus on the mission at hand. We provide the financial expertise, technology stack, and industry knowledge nonprofits need to achieve superior business management — across outsourced finance and accounting, revenue cycle management, and grant and contract management services.

Learn more about BTQ →