• Disaster relief charities: Know the rules before providing aid

    The United States is entering the most natural-disaster-prone time of the year. Tornadoes are most likely to occur in May, and the Atlantic hurricane season starts on June 1. Not-for-profits that provide aid to disaster victims — whether it’s medical care, food, clothing, shelter, cash or rebuilding assistance — are gearing up for potential emergencies. But if your organization operates in this space, know that when [...]

    Published On: May 9, 2024Categories: Featured, Not for Profit
  • 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 sound like good news, except for the fact that most nonprofits are on tight budgets and can’t afford to lose anything. To help keep your nonprofit’s [...]

    Published On: May 8, 2024Categories: Featured, Not for Profit
  • Board committees can help members make time for critical work

    For many not-for-profit organizations, maintaining a full and active board of directors is challenging. If your board holds frequent meetings, has high attendance expectations and requires members to do considerable “homework,” you may have trouble recruiting and retaining people. Qualified individuals generally are busy with work, family and other activities and may not have spare time to dedicate to all the duties expected of board [...]

    Published On: May 7, 2024Categories: Featured, Not for Profit
  • Don’t be surprised by a sudden influx of support

    When a Category 5 hurricane struck a coastal community, its most prominent health and human services charity was prepared to act with rescue plans, supplies, emergency shelters and well-trained staffers. What the not-for-profit wasn’t prepared for was a sudden influx of support, including donations. Too much support may not sound like a problem, but for nonprofits that aren’t prepared for a flood of attention and new [...]

    Published On: May 6, 2024Categories: Featured, Not for Profit
  • Plan now to reimburse staffers, board members and volunteers

    Even if your not-for-profit organization rarely needs to reimburse staffers, board members or volunteers, reimbursement requests almost certainly will occasionally appear. At that point, will you know how to pay stakeholders back for expenses related to your nonprofit’s operations? If you have a formal reimbursement policy, you will. Plus, you’ll be able to direct individuals with reimbursement questions to your formal document and minimize the [...]

    Published On: March 7, 2024Categories: Featured, Not for Profit
  • Arm your nonprofit against financial threats

    Whether it’s inflation, trouble finding staffers in a tight labor market or cybersecurity, nonprofit leaders have a lot to worry about. If making financial forecasts is more difficult than usual, consider taking measures that will fortify your not-for-profit’s position, regardless of the challenges. Keep an eye on cash Your organization may still be struggling following the pandemic. Or perhaps tax law changes have led to [...]

    Published On: March 6, 2024Categories: Featured, Not for Profit
  • 6 ways nonprofit retirement plans are changing

    Some provisions of 2022’s SECURE Act 2.0 (a follow-up to the SECURE Act of 2019) have been in force for over a year — including several that affect 403(b) retirement plans. If your not-for-profit offers staffers a 403(b) plan, you likely made some minor changes in 2023 and may have made more significant ones on January 1, 2024. A few additional provisions are scheduled to become effective [...]

    Published On: February 28, 2024Categories: Featured, Not for Profit
  • Internal hiring can help fill your nonprofit’s open job positions

      In January 2024, the U.S. economy added 353,000 new jobs. At a current rate of 3.7%, the unemployment rate has remained lower than 4% for two years. Although that’s generally great news for jobseekers and the economy, it tends to make the task of hiring not-for-profit staffers challenging. So why not look internally? Promoting existing employees generally is less expensive than extern al hiring and [...]

    Published On: February 27, 2024Categories: Featured, Not for Profit
  • 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 when donors establish gifts through their estate plans. But your development staff should know how the process works and how to encourage such [...]

    Published On: February 14, 2024Categories: Featured, Not for Profit
  • 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 organization with greater flexibility. And in the event of major changes, you may even want to consider reforecasting your current budget. Rolling budgets [...]

    Published On: February 11, 2024Categories: Featured, Not for Profit
  • 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 a CPA to audit your statements, the auditor is responsible for expressing an opinion on them and obtaining reasonable assurance that they’re free [...]

    Published On: February 10, 2024Categories: Featured, Not for Profit
  • Got independent contractors? Get to know Form W-9

      If your not-for-profit is perpetually shorthanded, you may have decided to engage independent contractors or freelancers to pick up some of the slack. Just make sure you’re collecting the right information from these individuals and filing it with the IRS. Clean paperwork now can save you a lot of headaches — including tax penalties — later. W-9 rules When engaging an independent contractor, obtain that person’s [...]

    Published On: January 22, 2024Categories: Featured, Not for Profit
  • Going global: How your nonprofit can navigate potential obstacles

      If your not-for-profit’s 2024 plans include international expansion, take care. Rules that apply to U.S.-based nonprofit activities — such as soliciting donations, recruiting members, hiring employees and selling products — often are different overseas. You need to make sure the desire for your services or products is robust enough in your target countries to justify the costs of operating in them. Ask questions and research [...]

    Published On: January 21, 2024Categories: Featured, Not for Profit
  • When are sponsorship and advertising payments subject to tax?

      Sponsorship and advertising dollars can provide a real boost to your not-for-profit organization’s income. However, if sponsors or advertisers receive a “substantial benefit” or if providing benefits isn’t a related business activity, you may owe unrelated business income tax (UBIT) on the payments. Here’s a quick look at what is and isn’t taxable. UBIT typically doesn’t apply to sponsorships Sponsorship dollars generally aren’t taxed. [...]

    Published On: January 20, 2024Categories: Featured, Not for Profit