When Leaders Are Locked Out of the Numbers
- Sheree Cannon
- Apr 8
- 3 min read
Updated: May 14
The Risk of Financial Gatekeeping
Sheree Cannon | Nonprofit Strategist & Consultant | Author
© Sheree Cannon, author. All rights reserved.
Introduction
In many nonprofits—especially those led by a passionate founder or tightly held board—executive directors are expected to lead the organization, raise funds, and report on impact. But behind the scenes, they may be excluded from one of the most essential tools of leadership: the full financial picture.
Budgets are finalized without their input. Spending decisions are made elsewhere. Requests for clarity are delayed, deflected, or denied.
This kind of financial gatekeeping often begins innocently. Founders want to protect their vision. Board members are trying to be responsible stewards. But over time, this pattern can create confusion, frustration, and even organizational risk.
It sends a quiet message: “We trust you to lead—just not with everything.”
This paper is designed to help clarify what’s really going on, what it costs the organization, and how to shift the dynamic—without blame or burnout.
What This Looks Like in Practice
This issue rarely announces itself as a major red flag. It shows up quietly in patterns like these:
The executive director isn’t involved in budget creation or doesn’t see drafts until after they’ve been approved.
Financial reports, if shared at all, are surface-level or heavily summarized.
The ED is responsible for raising funds but is unclear where funds are being allocated or how they are being spent.
Questions about reserves, cash flow, or debt are considered “board-only” conversations.
These limitations can make even the most capable leaders feel unsure and unsteady. They’re being asked to drive without a map.
Why It Matters
When an executive director lacks access to key financial data, it doesn’t just affect their performance—it affects the entire organization.
Here’s what’s at stake:
Strategic misalignment. The ED may unknowingly make program or staffing decisions that conflict with financial realities.
Fundraising barriers. Donors ask detailed financial questions. Leaders need accurate, current answers.
Organizational instability. Without clear, shared financial oversight, it’s harder to plan, adjust, and build long-term sustainability.
Leadership burnout. EDs carry a deep weight when expected to lead without full context.
No one thrives in the dark. And no leader should be held responsible for outcomes they aren’t empowered to influence.
For Boards and Founders: A Compassionate Invitation
If you are a founder or board member, and some of this resonates, consider it an invitation—not an indictment.
You may be trying to protect the organization. You may be operating out of habit or advice from a time when the organization was smaller. But as the mission grows, so must the infrastructure—and that includes trust-based, transparent leadership.
Simple shifts can make a profound difference:
Include leadership early. Invite your ED into the budgeting process—not just to approve the numbers, but to help shape them.
Share real financials. Provide access to actual reports—bank balances, P&Ls, reserves. Offer support in interpreting them if needed.
Clarify boundaries with grace. Good governance isn’t about control—it’s about clarity. Define roles. Share power. Build trust.
Be willing to grow together. Even if this is new territory, you don’t have to figure it out alone. Outside advisors can help bridge the gap.
For Executive Directors: Your Request Is Valid
You are not overstepping by asking for financial clarity. You are fulfilling your responsibility as a nonprofit leader.
It’s okay to say:
“I want to make the best decisions possible for this organization. To do that, I need access to our full financial picture. Can we talk about how to make that possible in a way that supports everyone involved?”
When framed with care and intention, these conversations don’t create conflict—they open doors.
Closing Thoughts
Financial transparency isn’t about blame. It’s about building an organization that can stand on solid ground—together.
When founders, boards, and executive leadership operate from shared understanding and open dialogue, the mission doesn’t just survive—it grows stronger.
Every leader deserves clarity. Every team deserves trust. And every mission deserves the stability that comes from making decisions in the light.
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