Within the Charity Sector, budgets are tight, and impact is essential. It’s no surprise that many charities consider combining Finance and Operations into one role, and it’s not uncommon for these positions to be successful within smaller organisations. It can offer streamlined leadership, cost savings, and a unified view of resources. But is it always the right move?
In this blog, our Associate Director – Recruitment, Matt Till, explores the advantages, challenges, and considerations to ask before merging these two critical functions.
Advantages of a Combined Finance and Operations Role:
Efficiency and Alignment
Finance and Operations are intrinsically linked. A single leader overseeing both functions can reduce silos and ensure financial decisions are operationally viable. This is particularly viable for small organisations where the CEO is externally facing for much of their time. Having a critical friend internally focused on all operational responsibilities can help give charity leaders sound peace of mind.
Cost-Effective Leadership
For smaller organisations, combining the roles avoids the expense of two senior salaries, while still securing strategic leadership in key support areas. Whilst it is commonplace for these combined roles to command slightly higher salaries than leaders for functions of these areas individually, this reduced cost saving is incredibly attractive.
Holistic Risk Management
From financial controls to facilities, contracts to compliance, a dual role can lead to more integrated and consistent risk oversight. Having a sound, reliable pair of hands with oversight of all internal functions can provide clarity and guidance in these areas.
Attractive to Cross-Disciplinary Leaders
Some senior professionals actively seek roles which offer both strategic financial stewardship and operational delivery, particularly those with aspirations of attaining positions such as COO in the future. The desire for leadership that can lend a hand to most areas of operations and work confidently within ambiguity is more attractive than ever.
Challenges of a Combined Finance and Operations Role:
Overload and Burnout
Both Finance and Operations are demanding functions. A single leader may struggle to provide sufficient oversight, particularly during high-pressure periods like audits, budget cycles, or organisational change. It is not uncommon for other areas to be pulled into these roles, which require dedicated focus and care, such as compliance, governance and data protection.
Dilution of Strategic Depth
There’s a risk the organisation ends up with a strong finance leader but limited operational expertise (or vice versa), resulting in uneven delivery across their portfolio. Candidates who are qualified accountants are likely to be stronger in financial disciplines. Whilst others are happy to lend their hand to operational matters, it might not be their key area of expertise.
Blurred Accountability and Risk
With so many touchpoints – HR, IT, facilities, compliance, finance – clarity of responsibility and decision-making can become muddled, especially without a strong senior team beneath the role. In addition, with many of the internal operational responsibilities being held by one individual, there could be challenges with extended periods of leave or if the employee resigns.
Talent Attraction Challenges
Finding candidates with the right blend of experience can be tricky. Candidates tend to either lean more towards finance or operations. Candidates can also become weary of blended roles, especially if they have not been successfully performed before. It may narrow your candidate pool, so we always suggest that your expectations and support structures are clear.
Considerations for a Combined Finance and Operations Role:
Is your organisation mature enough?
Charities with embedded processes, systems and a stable leadership team may be better suited for a combined role than those undergoing transformation or rapid growth. Do you have effective processes and policies in place already? These can be time-consuming to develop and deliver within an organisation.
What’s the team structure below this position?
We have seen that a combined role works best when complemented by experienced Leads in HR, IT or facilities, allowing the role to stay strategic and have oversight. Within small organisations, these functions can be performed by external suppliers, so it’s vital to ensure these are working well.
Will you compromise either area?
If either finance or operations is currently underperforming, combining the roles could amplify rather than solve the problem. Are there any key development areas in either function? Is a new finance system needing to be scoped out and implemented? Is a new database system or office move on the cards in the near future? These types of large projects can stretch the position if all other areas are not in order.
What do you need right now, and what can be grown into?
There will be immediate priorities for this role when the candidate joins the organisation. We recommend making sure you feel confident in the candidate’s ability to work on this area straight away. Areas that need thought and consideration later down the line create space for upskilling, if required. Ensure your role description gives a clear outline of your expectations for the role. You might need candidates to come in and deliver a review of processes, systems and policies, but it is unlikely they will be required all at once. Outline your expectations for the first 3,6, and 12 months as this provides confidence and clarity to candidates when they apply for the role.
What support and development will the postholder have?
Whether it’s a Financial Director stepping into operations or an Operations Lead picking up finance, they’ll need mentoring, peer networks, and a clear brief to succeed. Ensure to explore any potential areas of weakness at interview, and work with the successful candidate on outlining the support you can offer to upskill.
Final Thoughts:
Merging finance and operations into a single leadership role can be a strategic move for charities seeking efficiency, alignment, and cost-effectiveness. When done thoughtfully, it offers a unique opportunity to unify oversight, streamline decision-making, and attract versatile leaders who thrive in dynamic environments.
However, success lies in preparation. Clear expectations, strong support structures, and a realistic understanding of the organisation’s current needs are essential. This isn’t just about saving costs — it’s about building a role that empowers your charity to grow sustainably.
At Prospectus, we’ve partnered with a wide range of not-for-profit organisations to shape and recruit for combined leadership roles. Whether you’re exploring this model for the first time or refining an existing position, we’re on hand to provide guidance and support to ensure your position is framed well for the market and is attractive to the right candidates.
