Not for Profit

According to nonprofit BoardSource, not-for-profit boards that meet monthly should be able to cover all business in one to two hours. If your meetings last longer, they may lack planning and focus. This can ultimately harm your organization as busy board members lose confidence in your leadership — and even quit. Here’s how to hold productive meetings that don’t run long. Agenda items Once you’ve set [...]

You may know the difference between nonprofit and for-profit accounting systems, but do your newest employees and board members? Not-for-profits and businesses share certain similarities. For example, both must carefully track transactions and produce accurate, timely financial statements. But there are enough differences between the two that you may want to provide training for new board members and staffers who come from corporate backgrounds. Profit [...]

Brad, the development director of an international environmental charity, was thrilled to learn from a fundraising staffer that one of the charity’s past supporters was promising to make a new, six-figure donation. But there was a catch: The donor was going to attach restrictions to her gift. She didn’t, for example, want her money used in various countries where the charity had operations. Although Brad [...]

The difference between financial pledges and donations is relatively simple: Pledges are promises to donate sometime in the future, and donations provide immediate support for your not-for-profit organization. What’s not so simple is accounting for pledges. After all, a promise to donate isn’t a guarantee that you’ll receive the money when the contributor says you will — if at all — or in the amount [...]

During the COVID-19 pandemic, Congress temporarily enabled individual charitable donors who didn’t itemize federal income tax deductions to deduct up to $300 in contributions in both 2020 and 2021. This universal charitable deduction galvanized many donors who might not otherwise have supported charities in those years. However, the deduction expired after 2021. A bipartisan group of U.S. senators, with support from many in the not-for-profit [...]

Elite athletes train hard to perfect their performance in a particular discipline, but they also cross-train. For example, a sprinter might, in addition to running for hours, lift weights, swim and cycle. By strengthening all major muscle groups, athletes can reduce risk of injury and enhance performance in their primary sport. Cross-training nonprofit employees generally promotes similar results. If you have staffers temporarily rotate jobs — [...]

Some job candidates assume that not-for-profit organizations offer lower compensation than for-profit companies do. If your nonprofit has open positions, this can be a difficult hurdle to overcome — particularly if you don’t have the budget to compete with for-profit businesses. However, you may be able to offer fringe benefits that won’t take a big bite out of your budget. Review your benefits menu to [...]

If you’re a leader of a private foundation, you’re probably aware of the prohibition against self-dealing transactions between foundations and “disqualified persons.” But what constitutes self-dealing? And who exactly counts as disqualified in this context? It’s important for you to know because financial repercussions for violating the rules can be severe. Who is disqualified? The IRS defines disqualified persons as substantial contributors (generally, large donors), [...]

Most not-for-profit leaders are familiar with the concept of excess benefit transactions and the need to avoid them. But a refresher course may be in order, particularly when you consider that 501(c)(3) organizations determined by the IRS to have violated the rules can be liable for penalties of 25% to 200% of the value of the benefit in question. They may also risk a revocation [...]

At one time, not-for-profit HR departments might have been responsible primarily for recruiting and hiring and occasionally for intervening in disciplinary or conflict resolution matters. Today, HR staffers usually also administer benefits, provide employee orientation and training, draft and update various policies, ensure regulatory compliance, and keep employee records. They may even oversee payroll. That’s a lot of responsibility, and not every nonprofit has the [...]

There are many ways to evaluate the success of a not-for-profit event. But for most nonprofit leaders, financial success — how much did we raise? — is the metric that ultimately matters. To be financially fruitful, nonprofit events need sponsors (companies and individuals) to cover a portion of expenses. Be sure to make securing sponsorships central to planning your organization’s events. Best practices Depending on [...]

The deadline for most not-for-profits to file Form 990 with the IRS (May 15, 2024) has come and gone. Assuming your organization operates on a calendar-year tax basis and filed its Form 990 on time, you probably don’t want to think about tax reporting again until next spring. However, it’s important to keep your future Form 990 in mind as your organization carries out its programs and events this year. [...]

To administer productive programs worthy of your not-for-profit’s budget, you need to determine whether they’re meeting clients’ needs. In general, the best way to assess this is by surveying participants. But survey fatigue — frustration or disinterest when asked to take yet another online survey or one that’s overly complicated or takes too long to complete — is a real and growing problem. Multiple studies [...]

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 for organizations to act on. And if you fail to make changes that respond to risks or concerns discovered in an audit, it could threaten your nonprofit’s future. Discuss the report [...]