G Squared Partners

Case Study

Helping a Membership Organization Rebuild Financial Oversight and Protect Its Endowment

How G-Squared Partners stepped in at a long-standing nonprofit, gave its board a clear view of the finances, and put the organization on a path to a sustainable future.

Services

  • Financial Review & Corrections
  • Board & Management Reporting
  • Outsourced Accounting & CFO
  • Budgeting & Multi-Year Planning
  • Cash & Investment Management
  • Line of Credit Support

Overview

In early 2025, a consultant working with one of the most respected membership organizations in the performing arts brought G-Squared Partners in to look at its finances. The organization provides extensive career, legal, and community support to its members. Because members are considered independent property owners rather than employees, the organization acts as their advocate and business resource center, funded largely by membership dues and an endowment built over many decades.

In recent years, the organization’s board had grown increasingly uneasy. Information was hard to come by, and the numbers it did receive raised more questions than they answered.

What began as an independent evaluation became a full finance engagement: G-Squared Partners corrected the books, took over the accounting function, replaced the outgoing CFO, and built the budgets, reporting, and cash management the organization had never had. Today, the board has the visibility it needs to plan for the future with far greater clarity.

The Challenge

A Board Without Visibility

The board recognized that it needed a clearer view of the organization's finances and set out to get one. Several issues stood in the way:

  • Lack of Transparent Financial Reporting

    The information reaching the board didn't give it the transparency it needed to oversee the organization's finances with confidence.

  • Endowment Spending

    Over a four-year period, a significant portion of the endowment had been spent, with little meaningful reporting to document why. The board wanted a clearer view of the organization’s liquidity and spending and needed to build a more sustainable model going forward.

  • Activity Across Entities

    Funds moving between related entities needed to be reviewed, documented, and reconciled so the board could see the full picture of how the organization’s finances were being controlled.

  • Membership Dues

    Fees hadn’t been increased in over 10 years, meaning revenues had failed to keep pace with costs.

The board needed an objective outside view, and then it needed someone to fix what that view uncovered.

Our Approach

Assess First, Then Fix

G-Squared Partners' first engagement was an evaluation. We met with the board to walk through its fiduciary responsibilities and identify where the organization was falling short. The board's concerns were well founded, and a follow-on engagement quickly began to address the issues we had identified.

We started with the books and then moved to the structure around them:

  • Reviewing and Correcting Financial Statements

    We went back through the organization's historical financials and made the corrections needed to give the board an accurate starting point.

  • Management and Board Reporting

    Both groups now receive clear, consistent reporting on how the organization is performing on a regular basis.

  • Transaction Processing

    G-Squared Partners assumed day-to-day processing, which brought consistency and controls to every payment and receipt.

By the end of this phase, the board had accurate numbers, dependable reporting, and a finance function it could rely on.

These are creative people, and they always wanted to do right by their members. One example: they stopped collecting membership dues during COVID, then waited an extra year before starting again. That's a year of income gone, and no one with a financial background was there to flag the knock-on effects of that decision.

Jon-Cohen-Headshot-circle Jon Cohen Managing Director, G-Squared Partners

Building a Foundation for the Long Term

With a clean baseline and the accounting function in our hands, we turned to the forward-looking planning the organization had been missing:

  • A Clear Operating Budget

    We helped leadership build a real operating budget, then extended it into multi-year budgets so the organization can plan beyond the current year.

  • Cash Management

    We put regular visibility into cash in place and established a line of credit, secured against the endowment, to cover any shortfalls without selling investments at the wrong time.

  • Improved Investment Process

    We worked with the organization's outside wealth management firm to develop a new investment strategy and a clearer process around it.

  • Cost Savings

    We identified areas where the organization could reduce spending.

  • Revised Membership Fee Structure

    We modeled what would happen if membership fees increased and helped the organization implement its first new fee structure in over 10 years.

  • Billing

    We reworked the billing process, so revenue is collected more reliably.

Throughout the engagement, we've worked closely with the organization's new executive director, helping them shape strategy and put the changes and controls in place that keep the organization on track.

The Results

A Stronger Financial Position

Today, the organization is in a very different place than when we started:

  • The Endowment Has Stopped Shrinking

    Today, the organization is no longer drawing on the endowment's principal.

  • Revenue Is Better Aligned with Costs

    A new fee structure is in place for the first time in over 10 years, resulting in significantly improved cash flow.

  • Liquidity Is Protected

    A line of credit gives the organization a cushion for shortfalls, reducing the need to draw down the endowment in times of crisis.

  • The Board Has the Information It Needs

    Reporting is consistent, transparent, and built for the people making decisions.

  • Planning Extends Beyond the Year

    Multi-year budgets give leadership a clear view of where the organization is headed.

Taken together, these changes give the organization a stable base to build on. The endowment is protected, revenues align with costs, and the board has the visibility to understand the organization’s full financial picture.

Toward the Future: Planning with Confidence

G-Squared Partners continues to serve as the organization's outsourced accounting and finance team, working alongside the executive director on strategy, controls, and long-term planning. Our goal remains consistent: to provide an accounting and finance function that empowers the organization to focus on its members and its mission.

We're proud of the role we've played in putting this organization on firmer footing and look forward to supporting its next chapter.

Is your board asking for better visibility into the numbers?

At G-Squared Partners, we serve as an extension of your leadership team, building the reporting, planning, and processes your board needs to make decisions with confidence. Contact us today to learn how we can support your organization.

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