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Category: Nonprofit

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October 2, 2023
Trust and Internal Controls Can Coexist in Your Nonprofit

Within a period of just a month, a Minnesota woman was charged with skimming more than $300,000 from her animal rescue charity, a Florida man was charged with multiple felonies for running several charities for his personal benefit, and a New York man was sentenced to 18 mon...

August 16, 2023
Nonprofits: Ready, Set, Audit!

By scheduling annual financial statement audits, you can demonstrate your organization’s financial fitness to donors and other stakeholders. Plus, state governments and other grant makers may mandate them. But don’t assume that auditors will simply swoop in and take care...

August 10, 2023
Private Foundations: “Disqualified Persons” Must Color Within the Lines

Although conflict-of-interest policies are essential for all not-for-profits, private foundations must be particularly careful about adhering to them. In general, stricter rules apply to foundations. For example, you might assume that transactions with insiders are acceptabl...

June 12, 2023
Commit to Continually Improve Your Nonprofit’s Accounting Processes

Do your not-for-profit’s accounting processes work perfectly — with no errors, delays or other inefficiencies? If yours is like most organizations, probably not. But if your nonprofit is committed to improvement, you have an edge over those that accept the status quo. Wh...

June 5, 2023
Are Your Nonprofit’s Interim and Year-End Financial Statements at Odds?

Using the cash basis of accounting may make sense for your not-for-profit organization — at least at this stage. Many smaller nonprofits use the cash basis to prepare their financial statements because it’s generally quick, easy and intuitive and can alert them to curren...

May 22, 2023
Keep Thieves from Stealing from Your Nonprofit Youth Sports League

A few years ago, the popular and well-compensated executive director of a west coast youth soccer league was accused of fraud. After scrutinizing the club’s books, the league’s board of directors couldn’t account for $80,000. Criminal charges were eventually dropped, b...

April 26, 2023
Keeping in Compliance with Uniform Guidance

If your not-for-profit receives significant federal funds, it may be subject to the Office of Management and Budget’s Administrative Requirements, Cost Principles, and Audit Requirements (Uniform Guidance). And if your nonprofit spends $750,000 or more in federal awards in...

April 3, 2023
Nonprofits: 4 ratios worth watching

To control your not-for-profit’s expenses and improve operating efficiency, you need to keep an eye on the numbers. This should come as no surprise. But which measures are important? Which ratios can help you identify how much currently goes toward programming (as opposed ...

March 20, 2023
Make Your Nonprofit’s Auction a Success by Following IRS Rules

Whether your nonprofit is holding an in-person or online auction to raise funds, you need to be careful to adhere to tax requirements. For example, you should provide written acknowledgments (including good faith estimates of any goods or services provided in return for cont...

February 22, 2023
Passing the Public Support Test

Unless 501(c)(3) organizations prove they’re publicly supported, the IRS assumes they’re private foundations. The distinction is important, because publicly supported charities enjoy higher tax-deductible donation limits and generally are exempt from excise taxes and rel...

February 21, 2023
Are Your Accounting and Development Departments like Oil and Water?

When Accounting and Development teams don’t work well together, the situation can lead to more than employee hostility and conflict. It can affect the not-for-profit’s financial statements and lead to the forfeiture of grant funds. To ensure the staffers in your Accounti...

February 1, 2023
A Refresher on Nonprofit Endowment Management

If your not-for-profit has an endowment, you probably know it’s a major responsibility. Endowment investments generally need to be managed by a financial expert, and your organization must adhere to certain regulations, particularly when it comes to spending. As a refreshe...