How Much Do Fractional Executives Cost?

What is a fractional executive? And why would a nonprofit need fractional executive services? Put simply, a fractional executive is a short-term or part-time professional consultant who runs a portion of an organization’s high-level business operations. When partnered with an organization, a fractional executive could be hired to assume C-suite roles like:

• Chief Operating Officer (COO)
• Chief Technology Officer (CTO)
• Chief Information Officer (CIO)

Most often, a fractional executive will be highly specialized and possess years of non-fractional executive level experience. In fact, many fractional executives will have worked in high-level positions in their fields for ten to 20 years before switching to a fractional role. 

In addition to experience and insight, there are many other benefits associated with fractional executive services. Here are a few examples: 

• Allows someone to take charge of high-level duties without fully restructuring the organization.
• Helps reduce the nonprofit leader’s workload and handles the big picture ideas of their respective department.
• Offers leadership skills and experience while delivering a hands-on approach to tackling problems.
• Provides an outside perspective to analyze current issues, operations, and processes.
• Delivers a flexible experience, allowing nonprofits to use their services as needed.
• Develops strategies and roadmaps for future executives and leaders.

Ultimately, a fractional executive offers nonprofits an executive structure without the high price tag that comes with staffing a full-time c-suite professional. Speaking of cost, how much should a nonprofit expect to pay fractional executive services? In the sections below, we will elaborate on fractional executive compensation, with a specific focus on fractional CIO services and how this system works to benefit nonprofit organizations. 

CIO Fractional Executive Jobs: What Value Do They Bring and How Much Do They Cost?

The role of chief information officer (CIO) is one of the most common and critical positions assumed by fractional executives in a nonprofit organization. Although specific goals differ depending on the nonprofit, fractional CIO jobs primarily involve sourcing, implementing, organizing, and streamlining technology operations. This is an especially important service for nonprofits because they often operate with extremely tight tech budgets. Ultimately, enlisting the services of a fractional CIO helps nonprofits identify which tech tools and processes directly benefit their organization, allowing the rest of the team to focus on what they do best, serving their missions.

Here are some of the tasks and objectives a fractional CIO will tackle day-to-day:

• Meet with other leaders to develop and select the organization’s technology goals.
• Partner with leadership to improve existing IT strategies and pave the way for new ideas. 
• Source technology solutions to boost productivity.
• Discover how technology can better engage donors and volunteers. 
• Develop technology partnerships and negotiate potential discounts on tech products and services. 

Even though a fractional CIO is hired to spearhead the evolution of your technology infrastructure, they won’t come in ready to change everything to align with their personal goals. For example, when you partner with a third-party organization like Computers in Ministry (CIM), the CIO will approach their relationship with you from a service-oriented perspective. A fractional CIO’s main goal is to use their expertise to develop a technology strategy that is aligned with your mission and values. 

Although fractional CIOs serve the same purpose and have the same responsibilities as their full-time counterparts, they often work fewer hours and cost less money to employ. The typical fractional CIO salary is $175-250 per hour. Although, the exact cost of a fractional CIO’s salary depends on the scope of their job and other factors like:

• The duration of their employment with your organization. 
• The number of hours they are expected to work each week. 
• The location of your organization. 

In addition to a lower salary, nonprofits also don’t need to pay for benefits, bonus incentives, and overhead expenses that come along with employing full-time executives. 

CIM: Partnering You With the Right Executive to Help Your Nonprofit Succeed

If you are interested in hiring a fractional CIO to fulfill your nonprofit’s mission, then CIM is ready to help. When you partner with CIM, our senior technology executives offer your nonprofit:

• Dedicated Organizational CIO / CTO
• Complete Technology Assurance
• Strategic Technology Roadmap​
• Technology Health Assessment​
• Dedicated Consultative Hours
• Implementation + Helpdesk
• Outcomes-based Training

Schedule a call with us today to discover how we can design a custom partnership that aligns with your goals and mission.