If you lead a growing nonprofit, the finance function can quietly become the thing that holds your mission back. Cityside — the nonprofit newsroom behind Berkeleyside and other local outlets — hit that exact wall as it scaled.
As Cityside grew past 20 staff and took on formal audit obligations, its leaders needed finance systems they could trust. They found that in BTQ Financial, the nonprofit division of Consero, and an outsourced model that delivered a full finance team without a single in-house hire.
Cityside Co-founder & CEO Lance Knobel shares how outsourcing helped the organization built audit-ready finances, earned its board’s confidence, and freed leadership to focus on the mission.
The Local-Journalism Void Cityside Set Out to Fill
Cityside’s core mission is to build community through local journalism. It launched in 2009 when there was almost no local news in Berkeley, spotted an enormous void, and grew to roughly 23 people by the end of 2020.
That work matters because the collapse of local news carries real civic costs. Since 2005, an average of two U.S. newspapers a week have closed, and the consequences of that loss are measurable:
- Corruption rises when no one is watching local government.
- Polarization deepens without shared local facts.
- Voting rates fall as civic engagement erodes.
There is a real crisis in local journalism… On average, two newspapers a week have closed in the United States. So what happens when you lose local news? Corruption goes up, polarization goes up, voting rates go down. We’re interested in filling that void, and we’ve built a model that seems to do that pretty well. – Lance Knobel, Co-founder & CEO, Cityside
Why Scaling Meant Getting Audit-Ready
Growth changed Cityside’s obligations. As a nonprofit, it became subject to a formal audit, which meant it needed the systems and processes to pass that audit cleanly every year.
Rather than build that capability internally, Cityside leaned on BTQ’s expertise and technology. Staying audit-ready at all times became a function it could hand off entirely instead of scrambling to reconstruct each year.
Crucially, as a nonprofit, we were subject to being audited and we needed to have the systems, the processes in place to make sure we had a good audit. It would be unthinkable for us to run Cityside without the partnership with BTQ. – Lance Knobel, Co-founder & CEO, Cityside
A Full Finance Team, Fully Outsourced
The economics surprised Cityside’s leadership. For less than the cost of one in-house hire, the organization gained an entire finance function — a reality other mission-driven nonprofits are discovering too.
Instead of a single controller, Cityside plugs into a complete team and system. When you weigh the cost of outsourced accounting against a comparable hire, the package includes:
- A dedicated CFO and controller.
- Proven accounting systems and processes.
- Reliable monthly financial reporting.
- Audit preparation and compliance support.
Everything is outsourced. I could not hire a controller for what I’m paying each year for this work, and it’s extraordinary. I do have a CFO. I do have a controller. It really adds to our capability and what we’re able to challenge ourselves with in terms of our ambition. – Lance Knobel, Co-founder & CEO, Cityside
Financial Reporting the Board Can Trust
Consistent, accurate numbers changed how Cityside’s leaders operate. A disciplined month-end close means financial information they can rely on the same way every period.
That consistency shows up in the boardroom. Cityside now delivers board-ready reporting that stands out to the directors who see financials from many organizations.
I hear from my board members, “Wow, these monthly financials — I wish the other organizations had a financial package every month that looked like this. This is exactly what I want.” – Lance Knobel, Co-founder & CEO, Cityside
Clean Audits That Unlock Grant Funding
For a nonprofit, a clean audit is more than a compliance checkbox. It is the credential that opens doors to the large institutional funders who can fuel real growth.
With audit-ready books maintained year-round, Cityside can approach major philanthropies with confidence and compete for the grants that expand its reach.
Having a clean audit is fundamental to our ability to go to large institutional philanthropies and to get the grants that can really help us grow. – Lance Knobel, Co-founder & CEO, Cityside
Give Your Mission the Finance Function It Deserves
Cityside’s CEO no longer spends every week buried in the details of finance. Knowing that BTQ has the close, the compliance, and the audit handled keeps leadership focused on strengthening communities through local journalism — the work that actually matters.
BTQ Financial gives nonprofits that same peace of mind: outsourced finance and accounting purpose-built for mission-driven organizations, from fund and grant compliance to audit management and a Vice President of Finance who sits with your board. It is the model that lets leaders stay focused on strategic growth.
Ready to spend less time on the books and more time on your mission? Request a consultation to see what a purpose-built nonprofit finance function could do for your organization.
