How Much Does a Fractional COO Cost?

When people think of a nonprofit organization, they probably think of its mission first and foremost. And for good reason. NPOs quite literally change the world with their work. One might not think about the inner workings of a nonprofit initially. But, to quote the old saying, “to best serve others, give from a full cup.” To put this in terms of an NPO, to best act on your mission, you must first ensure that your organization is healthy.   

To that end, organizational leadership is critical for nonprofits. Having the right people at the helm of an organization and driving strategic decisions and operational approaches can be the difference between success and failure. One of the most important leadership roles for nonprofits is the Chief Operating Officer, or COO.       

Finding a quality COO can be hard to do, though. Hiring for nonprofits can prove particularly challenging due to a lack of funding or the specific skills needed to work in the NPO field. That’s where fractional executive services come into play. Hiring a fractional Chief Operating Officer, sometimes referred to as a freelance COO, consists of finding a candidate outside of the company to come in and help run the business on an “as-needed” basis. A good fractional COO should have the experience and qualifications to come in and act on in the best interest of the organization.

In this article, we dig into the specifics of fractional COO services, and what you should evaluate when considering a fractional executive hire. 

What Does a Fractional COO Do?

Typically speaking, fractional COO jobs  involve a variety of responsibilities. The main priorities, however, are to oversee day-to-day operations and administrative tasks. This can consist of working with other department heads and organization leaders and implementing initiatives to make operations more effective. The best COOs gather input, emphasize collaboration, and ensure all business decisions are made from a position of data-driven knowledge. They will also ensure that all employees, leaders, constituents, and other stakeholders are positioned to be as successful as possible.  

Fractional COO services have many upsides, including but not limited to:

• Bringing in an outside perspective 
• Gaining fresh insights
• Adding a wealth of experience and knowledge to the organization
• A reduced executive cost (more on that in a little while)
• Improved processes
• Increased revenue 
• Increased impact

What Does a Fractional COO Cost?

Since fractional COOs are part-time executives, you only pay for what you need. “How much do you pay a fractional COO?” You might be asking. Like any other profession, fractional COO rates will vary depending on experience, supply, demand, and other factors. While it can be hard to pin down an exact number, LinkedIn suggests that an average rate for a fractional executive falls between six and ten thousand dollars per month. It is important to note, however, that an hourly fractional executive will still cost less than hiring a full-time COO, who on top of salary, also requires benefits and overhead expenditures.  

What Should You Look for in A Fractional COO?

Hiring a fractional COO is an important decision, so look for someone who:

• Has relevant professional experience
• Shows demonstrable understanding of business operations, functions, and challenges
• Can develop a business strategy in your field
• Demonstrates clear and well-rounded communication skills
• Possesses working knowledge of Information Technology and how to leverage it for an NPO
• Has a history of solid leadership performance, skills, and qualities
• Shows good interpersonal skills
• Fits well with other people in your organization

Take Your NPO to the Next Level with Computers in Ministry

At Computers in Ministry (CIM), we are on a mission to help nonprofit organizations achieve their mission. We do that through holistic solutions like:

• Chief Information Officer and Chief Technology Officer services
• End user services
• Training services

Our main goal is to equip NPOs with the people and information they need to leverage technology and achieve success. Whether you’re dealing with new challenges or trying to find the best strategies for growth and success, we are focused on empowering your nonprofits with the high-quality executives you need for a fraction of the cost. For example, our fractional executive services provide:

• Tech research and evaluation
• Leadership and management
• Budgeting
• Roadmap creation and goal planning
• Organizational alignment
• IT governance
• Performance monitoring and management
• Contract negotiations
• Team development

So, if you are ready to partner with CIM today in search of a better tomorrow, get in touch!