Blog

Category: Nonprofit

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May 23, 2024
Nonprofits: Act Thoroughly on Audit Findings

External audits can help assure your not-for-profit’s stakeholders that your financial statements are fairly presented according to U.S. Generally Accepted Accounting Principles. They can also help prevent occupational fraud. Often, audit reports contain recommendations fo...

May 8, 2024
Weighing Potential Risks and Returns of Alternative Investments

Alternative investments may appeal to your not-for-profit because they often offer higher long-term performance than traditional securities do. But these investments can come with tax liabilities. They also typically are riskier, which may not be appropriate for your organiz...

May 6, 2024
Are Your Volunteers Risking Legal and Tax Liability?

Comprehensive risk management is one of the primary responsibilities of not-for-profit leaders. You probably regularly consider and act to mitigate risk to your facilities and assets and your staffers and clients. What about your volunteers? Even though the federal Volunteer...

April 17, 2024
Nonprofits Don’t Lose as Much to Fraud, but Risk Requires Action

According to the Association of Certified Fraud Examiners’ (ACFE’s) Occupational Fraud 2024: A Report to the Nations, not-for-profits suffer roughly half the median loss per fraud scheme of for-profit businesses and government entities — $76,000 vs. $150,000. That may ...

February 2, 2024
Encouraging Charitable Donors to Include You in Their Estate Plans

Even if current donations are your not-for-profit’s bread and butter, you can’t afford to neglect planned, legacy or deferred gifts. These gifts, generally made through wills and living trusts, often are much larger. Your employees don’t need to be directly involved wh...

January 24, 2024
3 Tips for Making the Financial Statement Auditing Process Smoother

Not-for-profits aren’t required to produce audited financial statements. But audited statements are more likely to reassure big donors and grant makers about your financial stability and generally will be required if your organization applies for a bank loan. When you hire...

January 18, 2024
Why Uncertainty Calls for a More Flexible Budget

Economic, social and political events in 2024 have the potential to negatively influence your not-for-profit’s budget. So if you generally prepare static budgets well in advance of each fiscal year, you may want to switch things up. Rolling budgets can provide your organiz...

January 11, 2024
Got Independent Contractors? Get to Know Form W-9

If your not-for-profit is shorthanded, you may decide to engage independent contractors to pick up some of the slack. Just make sure you’re collecting the right information. Organizations need a completed Form W-9 for every nonemployee they pay for services. Obtain this in...

December 11, 2023
When Do 501(c)(6) Organizations Risk Their Exempt Status?

Even when they’re nonprofits, trade associations and chambers of commerce generally qualify for a tax exemption under Section 501(c)(6) of the Internal Revenue Code, not Sec. 501(c)(3). And these “business leagues” (as the IRS terms them) must adhere to a different s...

November 22, 2023
Best Practices for Effective Board Meeting Minutes

If you think the recorded minutes of your nonprofit’s board meetings are just a formality, think again. Meeting minutes can become critical documents if, for example, your organization is audited by the IRS or your directors are sued due to a board decision. That’s why i...

November 15, 2023
How to Get the Financing Your Nonprofit Needs

Relatively high interest rates and tight lending standards are making it difficult for even for-profit businesses to apply and qualify for bank loans. But not-for-profits, which may lack adequate collateral or steady cash flow, generally face a greater uphill battle when it ...

October 5, 2023
Do You Have to Return a Donation When a Donor Requests It?

If a donor has never asked your not-for-profit to return a gift, it may only be a matter of time. Although uncommon, donors can change their minds. They may come to believe your organization is misusing or wasting donated funds or decide it’s no longer fulfilling its chari...