How has the role of CFO evolved over the past few years as a result of increased scrutiny from state and federal regulators and corporate governance requirements?
As a nonprofit organization, we have less state and federal regulatory oversight or corporate governance requirements compared to the private sector. But that has not left us untouched from board and bank scrutiny of our financials and our performance. Balanced budgets are essential, and year after year operations ending with a deficit are simply no longer acceptable. Accountability has become the watchword in all of our operations. While the Sarbanes-Oxley Act was primarily directed to the corporate sector, it was certainly a wake-up call to the nonprofit community. As such, in response, we have adopted new policies and altered some of our governance practices. Similarly, while there were few specific mandates, the IRS’s implementation of the new 990 tax return has provided guidance that has necessitated important changes to our governance and business practices.
What talents and credentials do you perceive as essential for a CFO to be qualified and succeed in today’s business environment?
Credentials can be important, but not necessarily specific ones such as a CPA. In fact, the vice president who hired me for my first job as a controller specifically said he was not interested in someone with an accounting degree, but rather, an individual with management skills and business acumen. He said that the necessary financial skills could be learned. Many of the skills and talents required for the job come first, I think, not from the classroom, but from an experienced work history. The CFO position at the JCC has a variety of functional responsibilities beyond finance, including facilities, administration, IT, HR, risk management, energy management, and more. As such, without multiple, specialized staff, there is an absolute need for expertise across the various functional areas. Because we lack the resources to do everything ourselves at the JCC, the ability to collaborate is essential, as is the ability to innovate. Finally, because we are, by budget, a smaller organization, to be effective, it is critical to be able to think strategically yet operate and manage at the detailed hands-on level. Despite needing all of these skills, the ability to ask questions and the desire to continue to learn on the job are essential for success in the position.
How has today’s difficult economy affected your role as CFO?
Because the JCC’s budget and operations are very dependent on philanthropy, the difficult economy and, particularly, the downturn in the stock market have cut back or limited individual giving. This has affected not only our annual budget, but also our efforts to foster endowment creation and legacy giving. Further, membership and tuition for our early childhood education centers are price driven, and we have had to take care in ensuring that our services remain affordable. On the other hand, a recent Money Magazine survey indicated that the thing people are least willing to give up in a tough economy is their gym membership. Membership stability and even growth in the JCC’s fitness center seems to prove that out. Whether that trend will continue into the future remains a concern, and with each budget cycle we again worry about the price elasticity of demand for our services and programs.
What are the top challenges you face in your role as CFO?
My position at the JCC offers a range of challenges, and like most in the nonprofit sector, it is topped by the finance function, from the complexity of programs and revenue sources to cash flow. Since the JCC is mission-driven, balancing scholarships and access to our programs and services against having the necessary resources to maintain the services we provide to the community is a day-to-day challenge. On the expense side, cost containment is a constant focus. The JCC is all about customer service, and with a facility open 16 hours per day, we must constantly deal with the cost of utilities and issues like facility cleanliness and having effective member services personnel. Also like many similar operations, our physical facilities are faced with significant deferred maintenance issues. Addressing deferred maintenance may perhaps be the biggest yet, seemingly, the most avoided challenge of all. Arguing for capital and equipment reserve funds is an annual budget battle, and the necessity for a balanced budget provides little opportunity to include such line items.
What aspects of your role bring you the most job satisfaction?
While there are many, the challenges of the job and how they are addressed are what bring me the most job satisfaction. It is very satisfying to achieve results our members appreciate, brought about by collaborating with a great team. I appreciate the diversity of experiences; no two days are ever alike. It is hard work and often stressful, but it is difficult to express how much fun it is to be negotiating a capital equipment loan for a new cogeneration system one day and sitting with an architect the next day learning about the unique aspects of designing an infant-toddler playground. Nothing is better nor more rewarding or fulfilling than to have a job that makes a difference and touches so many in the community and to know that what you do is appreciated. I consider myself very fortunate.
Name: Frank R. A. Resnick
Title: Chief Financial Officer
Company: Mandell Greater Hartford Jewish Community Center
Company headquarters: West Hartford
Age: 61
Hometown: West Hartford
Education/Credentials: B.A., Zoology, The University of Vermont; M.S., College Administration, Indiana University-Bloomington
