James Kennedy sits down with Wendy Laxton, founder of Laxton CFO Services, to unpack the “modern” version of fund accounting – how nonprofits manage restricted vs. unrestricted funds, align grant requirements with real-world operations, and avoid credibility-killing misallocations. Wendy shares how the 2008 recession unexpectedly led her into fractional CFO work, why niching down to nonprofits was a defining move, and what she’s learned from guiding organizations through system complexity – from overbuilt ERPs to intentionally “resetting” in QuickBooks and rebuilding structure over time.
About Wendy Laxton:
Wendy Laxton is the founder of Laxton CFO Services, a fractional CFO firm specializing in nonprofits. With early experience in public accounting (KPMG), consulting, and 15 years as a CFO in the construction industry, Wendy brings a practical, systems-minded approach to nonprofit finance – helping leadership teams make finance a true strategic partner at the mission table. She and her team also have “canine consultants” (yes, really), and the pups are part of the brand experience.
What You’ll Learn:
- Fund Accounting – Modernized: How nonprofits frame “fund accounting” today using restricted/unrestricted, designated/undesignated, and project-based tracking.
- Why Grant Reporting Feels Harder Now: How differing funder requirements can keep Excel in the workflow – even with modern accounting systems.
- Right-Sizing the Tech Stack: When an ERP is too complex for the org – and why “simplify first, then rebuild intentionally” can work.
- Preventing Misallocation Before It Happens: Why program leadership must be involved early in grant applications to avoid downstream compliance issues.
- What a Great Nonprofit Client Looks Like: The traits of organizations that get the most value from fractional finance leadership.
Episode Highlights:
- “If you get one more gig, you’ll almost have a full-time job.”
- “We tend to talk more about restricted, unrestricted… and even refer to activities as projects.”
- “We haven’t been able to escape the Excel spreadsheet.”
- “Let’s pull you out of this system… create a more simple structure… then build back the complexity intentionally.”
- “Where it works best… is when the program team is involved in the actual grant development.”
More About Wendy’s Role:
At Laxton CFO Services, Wendy helps nonprofits strengthen their finance operations without forcing a one-size-fits-all playbook. Her team often begins with a finance operations assessment (roles, workflows, systems), then supports everything from bookkeeping/controller-level structure through CFO-level guidance. They also help nonprofits simplify AP and credit card workflows (reducing paper and receipt chasing), coordinate clean handoffs between development CRMs and accounting, and build reporting structures that stand up to grantor scrutiny – especially for organizations in the ~$2M–$10M budget range.
