When Finance Professionals Serve The Greater Good

One of the biggest trends among younger finance professionals is a desire to serve a purpose beyond profits in their professional lives. Working within the finance function at non-profit organizations is a great way to employ your skills in the direct service of others, and I was pleased to speak recently with Trish Shannon, CFO of the AARP Foundation, the affiliated charity of the American Association of Retired Persons, about how she and her colleagues facilitated the foundation’s vital efforts in combatting poverty and hardship among seniors amidst the Covid-19 pandemic. Additionally, Trish elaborated on broader themes about how CFOs across sectors can incentivize upskilling and continuous learning among staff, and how non-profit finance leaders can ensure they keep their organizations prepared for unforeseen circumstances.

Jeff Thomson: Covid necessitated CFOs to shift their behavior towards crisis management, balancing short-term risks like liquidity, cash, balance sheet and customer needs with long term needs like investing in the future. As a foundation serving seniors, a population particularly vulnerable to Covid and a population with varying levels of digital skills, how did you manage this delicate balance between the short and long term? What technology investments have you made to improve seniors’ access to information on Covid and its related impacts? What unique role does finance play in making these investment decisions?

Trish Shannon: AARP Foundation works to end senior poverty by creating and advancing effective solutions to help vulnerable people over 50 secure the essentials: good jobs, benefits for which they are eligible, key refunds, healthy food, stable housing and sustaining social connections. Our responses to the pandemic were tactical adjustments to our ongoing strategy of helping struggling older adults bounce back from adversity.

Older people were significantly affected by the pandemic, especially the vulnerable older adults the Foundation serves. During the first six months of the pandemic, for example, workers who were 55 or older were 17% more likely to lose their jobs than their only slightly younger peers. Recovery has been worse, too, with only 28% of older jobseekers finding work, a significantly lower percentage than other age groups.

Despite having to suspend our in-person program services, AARP Foundation quickly identified ways to serve our target population remotely. As early as April of 2020, we launched an Emergency Food Box program that delivered more than 3.4 million meals to seniors across the nation. Instead of our annual in-person meal pack on the National Mall, more than 7,000 volunteers working at home bought and packed nearly 1 million servings of food for older adults in the Washington, D.C. region. One of our longest-standing and best-known programs, AARP Foundation Tax-Aide, not only helped more than 1.5 million taxpayers garner nearly $1 billion in refunds through  virtual assistance, but also managed a transition to the use of Chromebooks, which will yield more efficient results for years to come.

By analyzing the various options and offering an independent assessment of the situation, the finance team plays a very important role in making these decisions – not only from a budget perspective but also through its ability to offer integrated and strategic considerations.

Internally, as an affiliate of AARP, we rely on AARP for many shared services like technology, human resources, general counsel, etc. Several years ago, AARP transitioned to a Workforce of the Future, which allowed all staff the capability to work remotely. Consequently, we were able to transition rather seamlessly to working remotely full-time in March 2020.

We put a financial contingency plan in place in case there were liquidity or revenue concerns. Fortunately, we did not have to execute against those plans, and AARP Foundation continues to be in a sound financial position.

Thomson: Traditionally, education in finance (as in most other fields) was a matter of acquiring a tertiary school degree and then entering the job market. That’s quite different from today’s need to constantly upskill and pursue professional development. How does the AARP Foundation promote ongoing learning for its staff, particularly within the finance function? What competencies does it emphasize?

Shannon: AARP Foundation prides itself on having a learning culture. We have what we call Foundation University, which requires staff to earn at least 50 points each year through participation in seminars, tutorials and career-enhancing workshops; earning these points is part of each employee’s annual individual performance objectives. We also have a set annual individual budget for specific training and a tuition assistance program.

Foundational finance, data analysis and project management knowledge are essential competencies we look for and emphasize for the finance team. Equally important are professionalism, ethics, risk management and internal controls. We also emphasize successfully managing stakeholder relationships, and having a strong command of the organizational strategic plan and each of the Foundation’s functional areas.

Thomson: You’ve spent your career as a finance leader in the non-profit sector. What unique financial challenges do non-profits face, especially in the aftermath of the Covid-19 pandemic and the sharp increase in needs among the vulnerable people and communities that many non-profits serve? How does the non-profit CFO manage these challenges and serve their organization’s stakeholders through difficult times?

Shannon: Balancing the needs of vulnerable older adults – especially since the pandemic – with revenue and staffing levels is always a challenge in the nonprofit sector. At AARP Foundation, we strive to [make] life better for lower-income older adults by ensuring that data collection systems are in place and working effectively.

During the Covid pandemic, we pivoted and amplified our message to stakeholders and the public, not only to raise awareness of our program offerings, but to emphasize that vulnerable older adults needed our help more than ever. We know that we can’t solve senior poverty without forming alliances with other organizations to find solutions and share experiences. 

The successful CFO must be committed to the organization’s mission and to maintaining the public’s trust. The CFO works across the organization to identify any potential risks or gaps in our strategic plan and ensures we’re adequately resourced to achieve our goals. The CFO must be proactive in finding solutions that contribute to the future sustainability of the organization and its ability to achieve its mission.

This article has been edited and condensed.