Nonprofit trade associations, or 501(c)(6) organizations, exist to promote their members’ common interests and improve business conditions or “one or more lines of interest.” Whether the association is a local chamber of commerce, a real estate board or a large professional group, associations’ tax-exempt status is contingent on their sponsoring certain types of activities — […]
Protect your nonprofit by cross-training staff
What would happen if one of your managers was suddenly forced to take long-term disability leave? Or an accounting staffer quit without notice? It’s possible that your not-for-profit’s work could come to a standstill — unless you’ve cross-trained your employees. Problem and solution Cross-training employees — teaching them how to do each other’s jobs — […]
Nonprofit board retreats: The pause that refreshes
If your not-for-profit’s board is like most, its members lead busy lives. They may not get to every board meeting or perhaps they’re able to attend meetings only via teleconference. That’s why it’s important to periodically bring everyone together in a relaxed setting. But to be successful, your retreat should be planned to the smallest […]
You too could fall victim to a celebrity scandal
Celebrities — whether they’re Hollywood stars, hometown sports heroes or local TV news anchors — can provide a big boost to the not-for-profits they publicly support. The flip side is that stars can also harm an organization by association. Accusations connected with the #MeToo movement and other scandals have recently brought down many famous people […]
Divide and conquer: How joint cost allocating works
In recent years watchdog groups, the media and others have increased their scrutiny of how much not-for-profits spend on programs vs. administration and fundraising. Your organization likely feels pressure to prove that it dedicates most of its resources to programming. However, accounting rules require that you record the full cost of any activity with a […]
How to convince donors to remove “restricted” from their gifts
Restricted gifts — or donations with conditions attached — can be difficult for not-for-profits to manage. Unlike unrestricted gifts, these donations can’t be poured into your general operating fund and be used where they’re most needed. Instead, restricted gifts generally are designated to fund a specific program or initiative, such as a building or scholarship […]
Make a licensing agreement work for your nonprofit
Licensing your not-for-profit’s name to a for-profit company can provide a valuable new revenue source — but it can also be risky. If you’re considering a licensing arrangement, ensure that the partnership really will generate funds and, possibly more important, a positive impression of your brand. Success . . . and controversy When licensing arrangements […]
Nonprofits should be prepared for sudden outpouring of support
Americans gave unprecedented sums to charity in response to the devastating hurricanes last year. Large organizations, such as the American Red Cross, were equipped to handle the huge influxes of donations. However, some smaller charities were overwhelmed. Although it may seem like an unlikely problem, your not-for-profit needs a plan to handle a potential outpouring […]