Not for Profit

How is your not-for-profit’s 2025 program budget looking? Unfortunately, some organizations may have to try to do more with less next year because donations and grants have fallen off. Even if your income is relatively stable or rising, you’ll want to ensure you’re making the most of your budget. Take the time now to review your programs and determine what no longer works and what [...]

Even if you’re confident your organization operates with integrity, adopting a code of ethics can provide several benefits: It can help prevent fraud, guide staffers in their decision-making, and reassure donors and other stakeholders that your organization is adhering to its values. If you’re ready to adopt a code of ethics, here’s how to do it. Values into action First, what’s the difference between a mission statement [...]

If your not-for-profit is looking for significant ways to cut costs, one of the best ideas is to target your workspace. Sharing an office or other facility can help you slash rent or pay a mortgage, as well as cut utilities expenses. These arrangements can also provide other, less obvious cost-busting benefits, such as enabling you to share equipment, supplies, services and even staffers. But [...]

Are your not-for-profit’s board members independent? Your immediate response is probably, “of course!” But contrary to what many nonprofit leaders and staffers might think, director independence goes beyond avoiding conflicts of interest. In fact, the IRS has a four-part definition of independence. If a majority of your organization’s board members don’t meet all four criteria, the IRS, donors and other stakeholders could call your governance [...]

Let’s say that one of your not-for-profit’s employees makes significant personal purchases on a credit card you’ve provided for work-related expenses. You may think the outcome is relatively straightforward: The individual is fired and referred to law enforcement for prosecution, and you recover the funds. Unfortunately, obtaining a criminal conviction may be difficult. Plus, you might not want the negative publicity. Your credit card issuer is [...]

The SECURE 2.0 Act made some enhancements to IRA qualified charitable distributions (QCDs) that may benefit your not-for-profit organization — so long as donors know about them. You can encourage your supporters to contribute more by boning up on the new rules and communicating their tax advantages. QCDs to RMDs First, the basics: QCDs were established in 2006 and became permanent in 2015. Taxpayers age 70½ [...]

If your nonprofit has investment income, dividends, interest, rents and annuities, they’re generally excluded when calculating unrelated business income tax (UBIT). However, income from debt-financed property typically is taxable. So it’s important to segregate income from such property and include it in UBIT calculations to help ensure you don’t trigger unwanted IRS attention. What counts as UBI? Income produced from debt-financed property generally is taxable [...]

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 [...]