Not for Profit

The 2022 Report to the Nations from the Association of Certified Fraud Examiners reports that not-for-profits are the least likely type of organization to experience occupational fraud. Sounds like good news, right? Unfortunately, the $60,000 median loss is more than most nonprofits can afford. Fewer financial and staff resources and less vigorous oversight and enforcement of internal controls can make nonprofits vulnerable. But inexpensive controls [...]

If your not-for-profit hasn’t conducted an executive search since before the pandemic, anticipate an altered search landscape. For example, the job market now is tighter and, given the prevalence of working from home, candidates may not want to consider relocating. A search committee of board members should keep comprehensive, up-to-date job descriptions for executive positions and list the knowledge, skills, abilities and attitudes required. Also, [...]

In general, quid pro quo donations occur when a not-for-profit receives a contribution of more than $75 and it provides the donor with goods or services valued at less than the donation amount. These arrangements create reporting obligations for your nonprofit. You must give written notice to donors that they can deduct only the amount in excess of the value of goods or services they [...]

There are thousands of grants and millions of dollars available to nonprofits from the federal government, states, foundations and other sources. Unfortunately, you can’t just ask nicely and expect to receive them. Qualifying for the funding your organization needs generally requires you to submit thorough, professional and compelling grant proposals. Here are a few tips. Know your grantmaker Just as you’d research potential employers before [...]

If your not-for-profit is trying to fulfill its mission with less volunteer help these days, you’re not alone. A December 2021 Gallop poll found that although donating to charity has largely returned to pre-pandemic levels, volunteering was still down. Only 56% of survey respondents said they’d volunteered in the past year, compared with 64% in 2017. Given this shortage of helping hands, you may want [...]

Does your not-for-profit offer programs that may have started out promising, but have become disappointing? Do you have replacement programs in mind but haven’t yet secured funding for them? Consider subjecting your programming lineup to a good spring cleaning. That way, you can reallocate funds to offerings that have the best potential to meet your organization’s strategic objectives. Perform new research Instead of relying on [...]

Business transactions with related parties — such as friends, relatives, parent companies, subsidiaries and affiliated entities — may sometimes happen at above- or below-market rates. This can be misleading to people who rely on your company’s financial statements, because undisclosed related-party transactions may skew the company’s true financial results. The hunt for related parties Given the potential for double-dealing with related parties, auditors spend significant [...]

According to a 2021 Independent Sector survey, 57% of Americans trust not-for-profits to “do what is right.” Although that’s a majority, being trusted by just over half of respondents is hardly worth celebrating. Well-publicized scandals involving nonprofit principals and a general decline in the population’s faith in institutions (particularly among conservatives and rural dwellers) have taken their toll. To ensure your organization remains well-regarded by the [...]

Traditional strategic planning requires not-for-profit leaders to perform a lot of guess work about what might happen in the future. This approach also asks decision-makers to explicitly shut down options and possibilities. Real-time strategic planning (RTSP) is a more flexible approach. It enables nonprofits to identify, understand and act on today’s challenges and opportunities. Coordinated set of actions RTSP was first introduced by nonprofit consultant [...]

Your not-for-profit may not be required to undergo regular audits. But an audit can reassure donors and other stakeholders that you take seriously your responsibility. An audit can also help you identify risks before they become intractable problems. Here’s how to initiate and prepare for an audit. Find and meet with an auditor Start by drafting a request for proposal (RFP) for prospective auditors. The [...]

Is your board staring at financial red flags without knowing it? Although some warning signs — such as those experienced when the pandemic first hit — are obvious, others are easy to overlook. Here are several signs of trouble that board members need to be aware of and prepared to act on. Unexplained variances and other budget issues Certain budget-related issues may hint at rocky [...]

Many employees have embraced the opportunity to work from home during the pandemic — but not all of them. Some workers have experienced feelings of disconnection and isolation. So if your not-for-profit plans to make remote working a longer-term proposition, you should look for ways to make everyone feel connected to the job and their colleagues. Make regular contact Perhaps the most important step is [...]

If risk wasn’t a nagging concern for nonprofits before the pandemic, it certainly is now. Health risks to staffers, volunteers and clients, and financial threats, including declining donations and increased incidence of fraud, now likely keep many executive directors up at night. But enterprise risk management (ERM) can help not-for-profit organizations find firmer ground. Here’s how. Portfolio purview ERM is a comprehensive program that considers [...]

The Great Resignation hasn’t been so great for not-for-profit organizations. As many for-profit businesses — particularly in traditionally low-wage industries — have raised pay and hiring incentives, nonprofits have lost staffers. According to a New York Times analysis of Current Population Survey data, nonprofit employment in November 2021 was 4.8% below its prepandemic level, compared to 1.5% lower in the for-profit sector. To replace lost [...]