From my experience in Banking across Canada I can say there are a number of NFP organizations with 7 figure bank balances and a couple at 8 figures so I doubt it has much to do with the amount of money you accumulate. Just saying.
I suspect Rob's experience might just reflect Turdos and his band of bandits thinking as it relates to civilian ownership of firearms. If a US Steel stage has a steel target at 7 yards and has had since the sport started I see no reason why this example alone ought to be enough to convince a CFO setting steel at that distance would be safe. The other side of the coin unfortunately is IDPA by rule lists 10 yards as it's maximum.
We use side berms as backstops and they are approved by the CFO. I assume they are approved. I know if it were me I would not bring the subject up. It is easier for an inspector to say no to a question like that than yes. One answer has consequences while the other has none. I would not suggest getting your back up and either threatening court action or going to court is the route to take. First, it is expensive and there is a good chance you won't get the answer you want. Too, at the end of the day you are going to have an ugly CFO to deal with after the dust settles. Where is the win? There is no sense in being dead right in a crosswalk.
Take care
Bob