Outsourcing financial processes can transform nonprofit organizations by providing strategic financial management, ensuring sustainability, and supporting mission-driven work.
Kelsey Louie, CEO of The Door, a youth services nonprofit, discusses how adopting Finance as a Service (FaaS) became a game-changer for the organization.
About The Door
The Door is a comprehensive youth organization that serves over 11,000 young people aged 12 to 24 in New York City. Their mission centers on:
- Providing a diverse and caring environment
- Offering comprehensive services to help youth survive and thrive
- Addressing multiple needs beyond initial engagement
Transitioning to Financial Independence
In 2021, The Door became independent from its parent company, requiring significant restructuring of its financial processes and systems.
Challenges:
- Recent separation from a parent company
- Need to rebuild the finance team
- Require improvement in reporting systems and processes
Strategic Solution: Finance as a Service
Rather than hiring a single CFO, Louie turned to BTQ, a division of Consero, and the FaaS model for:
- Access to a broader range of expertise and resources
- Faster system rebuilding and improvement
- More comprehensive financial support
Implementation and Outcomes
Seamless Integration
FaaS was implemented as a collaborative solution that felt like an in-house team rather than an outsourced service.
- Responsive Team: Provided tailored support and deep understanding of organizational programs to foster trust and confidence among staff of the model’s effectiveness.
- Efficient Implementation: Enabled quick and effective rebuilding of financial systems and reporting.
Financial Improvements
Cleaner audits, enhanced cost monitoring and analysis, and better financial management significantly improved stakeholder confidence.
- Funders and Donors: Increased trust in the nonprofit’s financial stewardship of public and private funds.
- Staff Confidence: Assurance that costs were monitored effectively, strengthening internal processes.
- Skill Building: Staff gained expertise in handling government and private funding.
Organizational Impact
FaaS provided valuable cost analyses, enabling informed decision-making for current and future initiatives.
- Improved Fundraising and Service Delivery: Enhanced financial management contributed to better outcomes.
- Strategic Expansion: Financial planning supported informed decisions for expansion and growth, including:
- Geographical expansion
- Space utilization
- New program development
- Cost Savings: Estimated savings of $1 million over 2.5 years, allowing reinvestment in mission-critical activities.
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FaaS: Setting Up Future Success
The Door’s partnership with BTQ not only provided financial savings but also delivered increased confidence among leadership, stakeholders, and staff.
- Holistic Benefits: Beyond financial savings, the nonprofit gained strategic insights, operational efficiency, and stakeholder confidence.
- Mission-Driven Focus: FaaS enabled the executive team to prioritize service delivery while ensuring financial stability.
- Sustainable Growth: Positioned The Door for long-term success and continued impact on the community.
By embracing FaaS, The Door transformed its financial management and operational efficiency, and is now better positioned to focus on its core mission of serving New York City’s youth.
