Not for Profit

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 [...]

Many nonprofits have put major purchases and other ambitious initiatives on hold during the pandemic. But if you need to buy or expand a facility, purchase expensive equipment, or seed an endowment, your organization may not want to wait any longer. A capital campaign to raise funds can be more difficult at this time — but it’s possible. You just need to ensure your not-for-profit’s [...]

When a nonprofit is new, it may struggle to find an adequate number of board members. But as it grows, its board is also likely to grow — sometimes, to an unwieldy size. The question is: How many directors does your organization need to effectively pursue its mission? Perks and drawbacks Both small and large boards come with perks and drawbacks. For example, smaller boards [...]

Most not-for-profits encourage donors to make unrestricted contributions that will give the organization flexibility to use the money where it’s needed most. But there will always be some donors who place restrictions on their gifts — and these require a higher level of responsibility. If your nonprofit fails to use a restricted donation as intended, it’s possible the donor will request its return, potentially resorting [...]

It’s a new year with new opportunities for your not-for-profit to boost its financial resilience. Although COVID-19 continues to make forecasting difficult, your staff and your board’s finance committee can take steps to negotiate obstacles. Here are three. 1. Managing reserves and cash flow Financial reserves have taken a hit across all types of nonprofits, and for some organizations, fundraising has fallen far short of [...]