Blog

Category: Nonprofit

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November 29, 2022
Operating Reserves Can Help Cushion Financial Blows

First the COVID-19 pandemic wreaked havoc on not-for-profit finances and operations. Now, many organizations are worried about how high inflation and a possible recession might interfere with their plans. To help prevent service disruptions and other negative outcomes, focus...

October 21, 2022
Keep Your Religious Congregation on the Financial Straight and Narrow

Religious congregations usually enjoy greater protection from federal government oversight than other not-for-profit organizations. For example, the IRS can’t conduct a “church tax inquiry” unless a high-level Treasury Department official has written evidence that a re...

October 3, 2022
Lost Your Tax-Exempt Status? Here’s How to Regain It

So you forgot to file your not-for-profit’s Form 990, 990-EZ or 990-N with the IRS. It can happen — particularly with newer organizations that are still trying to get a handle on all the financial and regulatory requirements of running a nonprofit. However, if you forget...

August 25, 2022
For a Stronger Nonprofit, Increase the Number of Income Streams

Not-for-profits that rely on a single income source, or only a few, are vulnerable to economic shocks. The COVID-19 pandemic has made this particularly clear. Most organizations have had to scramble to make up for lost revenue when at least some of their usual support dried ...

August 3, 2022
What Revenue Numbers Can Reveal About Your Nonprofit’s Financial Health

When professional auditors review a not-for-profit’s books, they usually spend significant time on revenue. Inadequate revenue — or revenue trending in the wrong direction — can provide an early warning of future trouble. But you don’t have to wait for your next audi...

July 7, 2022
Reviewing — and Possibly Revising — Your Nonprofit’s Spending Policy

A spending policy is the formula used to determine how much of the value of investments a nonprofit organization will tap each year for such expenses as operating costs and capital projects. Although it’s usually a good idea to stick with an established spending policy, ci...

June 16, 2022
Oversight and Controls Are Key to Limiting Fraud in Nonprofits

Recently, the Association of Certified Fraud Examiners (ACFE) published its biannual Report to the Nations: 2022 Global Study on Occupational Fraud and Abuse. Of all the types of organizations surveyed by the ACFE, not-for-profits actually were the least likely to experience...

June 2, 2022
For Nonprofits, Quid Pro Quo Isn’t a Simple Exchange

Quid pro quo donations occur when a not-for-profit receives a payment that includes a contribution and the organization provides the donor with goods or services valued at less than the contributor’s payment. Among other things, these arrangements create reporting obligati...

May 20, 2022
Support Your Nonprofit’s Financial Plans with Board Designations

The pandemic, ongoing economic insecurity and uncertainty about the future have prompted some not-for-profits to make board designations of unrestricted assets. What are board designations, why are they worth considering and how does the process work?...

May 10, 2022
CFO, Yes or No? Here’s How to Decide

Whether your not-for-profit organization needs a chief financial officer (CFO) depends on many factors, such as the size of your organization, the complexity and types of revenue sources, and the number of programs you have. Static organizations are less likely to need a CFO...

April 27, 2022
What Charitable Givers Need to Know About Taxes

Although most charitable donors aren’t primarily motivated by potential tax breaks, they still need to know how donations affect their taxes. It’s important for your not-for-profit to educate them — particularly as tax laws change. For example, in 2020 and 2021, even n...

March 30, 2022
Classify Your Nonprofit’s Workers Correctly — or Risk Repercussions

Many not-for-profits are understaffed in 2022, thanks to a labor shortage and pandemic-related budget shortfalls. Some organizations are filling the gaps with freelancers and contractors. However, such decisions can lead to trouble if these workers should really be classifie...