By Mig Murphy Sistrom, MAC, CPA
A nonprofit executive director sends a request for proposal to five firms. A few weeks later, five proposals arrive, each with its own price, its own list of services, and its own way of describing the work. The executive director reads them all and still has one big question: which of these firms truly understands our organization?
That question is the heart of choosing a financial management partner. Many nonprofit leaders bring valuable experience selecting vendors and evaluating proposals, often from years in the nonprofit and/or commercial world, and that discipline serves any organization well. A financial management partner is different from a typical vendor, though. They become part of the team, working alongside staff, the board, and the mission for years. Choosing well starts with getting to know the people behind the proposal.
Why Should a Conversation Come Before a Proposal?
A conversation before a proposal shows whether a firm’s expertise, values, and working style fit a nonprofit’s needs. That insight comes most clearly from talking directly with the people who will do the work.
A proposal can describe a firm’s philosophy, list its services, and offer an estimated price. A conversation reveals how the firm listens and what it notices. It also shows whether the firm’s specialty matches what the organization needs today and where it hopes to go.
Fit matters more here than in most vendor relationships. The people handling your books, budget, and board reporting will be deeply involved in your operations. It helps to know you’d welcome them as colleagues.
A conversation also strengthens the proposal itself. The more a firm understands your goals, systems, and board, the more accurate its scope and pricing will be.
A Simple Sequence for Organizations That Need an RFP
Many nonprofits run a formal request for proposal because of policy, funder expectations, or board preference. A simple sequence keeps the structure of an RFP and adds the value of a conversation:
- Issue the RFP to the firms you’re considering.
- Schedule conversations with the firms on your shortlist and any that ask to speak with you.
- Review proposals with what you learned in those conversations in mind.
Many experienced firms prefer to talk with a prospective client before proposing, so building in that step also widens the field of strong candidates.
How Should a Nonprofit Compare Proposal Prices?
It’s natural to compare proposals by price. Price tells part of the story, and scope tells the rest.
When quotes vary widely, the difference usually comes down to what each firm plans to include. Ask each firm what its proposal covers and how that work connects to your goals. With several proposals in hand, the outliers on either end often deserve a closer look. The strongest options tend to sit where scope, value, and fit line up.
If the firm you’d most like to work with feels out of reach, say so. Many firms can adjust the depth of service to fit a budget while keeping what matters most to your organization. That flexibility is easiest to find once both sides have shared information and started building trust.
What Questions Should a Financial Management Partner Ask?
An RFP tells a firm what fits on the page. A thoughtful partner will want to understand much more. In my own exploratory calls, I ask questions like these:
- What tasks would you most like to hand off?
- Where do you already wish you had more support?
- What is the highest and best use of your time, and how can we help protect it?
The answers come through conversation, and they shape both the accuracy of a proposal and the strength of the partnership that follows. A firm that asks these questions early is already working to understand the organization it hopes to serve.
When One Need Reveals Another
Nonprofit leaders often reach out with one specific request in mind, such as a tax return, a new bookkeeper, or help preparing for an audit.
When someone contacts me for a tax return, I’m delighted to help, and the conversation usually widens from there. A tax return depends on accurately closed books. Accurate books make meaningful budgeting possible. Meaningful budgeting supports clearer board reporting. Each layer builds on the one before it.
By the end of that first call, a request for a single service has often become a fuller conversation about the organization’s financial health. It also becomes a conversation about how much more time leaders could spend on the mission with the right support in place.
That conversation also clarifies how different services work together. An audit provides independent, year-end assurance on the financial statements, which many organizations need for funders, lenders, or government requirements. Ongoing financial management supports the month-to-month decisions, internal controls, and planning that keep the organization on track. A good partner helps leaders see where each one fits.
What Should a Nonprofit Look for in a Financial Management Partner?
A strong financial management partner brings focused nonprofit experience, a credentialed team, and a habit of listening before proposing.
- Nonprofit focus. Nonprofits carry specialized reporting, grant, and governance needs. A team that works with nonprofits day in and day out brings depth in each of these areas.
- A credentialed team. Look for a CPA on the team who knows Form 990 and nonprofit accounting standards and has considerable experience in this space.
- A listening-first approach. The right partner asks thoughtful questions and requests a conversation before submitting a proposal.
- A good colleague. Choose people you’d be glad to have alongside your team for years to come.
How hfco Can Help
hfco’s Nonprofit Accounting and Advisory Services team believes the strongest partnerships begin with a conversation. We take time to understand each organization’s goals, systems, and board dynamics before recommending a path forward, because the best solutions start with listening. If your organization is exploring a change in financial management support, we’d welcome the chance to talk it through, wherever your organization serves across NJ, PA, NY, DE, MD, and NC.
About the Author
Mig Murphy Sistrom, MAC, CPA, is Director of Nonprofit Accounting and Advisory Services at hfco. She brings more than 30 years of experience in nonprofit accounting and financial management, including 24 years leading her own nonprofit-focused firm in Durham, North Carolina, before her firm became part of hfco in 2026. She holds a BSBA and a Master of Accounting from UNC Chapel Hill, along with certificates in nonprofit management from Duke University and in not-for-profit accounting from the AICPA.
