• 5 ways nonprofits can prepare for an audit

    No not-for-profit looks forward to annual audits. But regular maintenance and preparation specific to an impending audit can make the process less disruptive. We recommend taking the following steps. 1. Reconcile routinely You shouldn’t wait until audit time to reconcile accounts — for example, cash, receivables, pledges, payables, accruals and revenues. Reconcile general ledger account balances to supporting schedules (bank reconciliation, receivables and payable aging) [...]

    Published On: August 8, 2021Categories: Featured, Not for Profit
  • Does your nonprofit owe tax on its sponsorships and advertising?

    Your not-for-profit may prefer to avoid activities that subject it to unrelated business income tax (UBIT). But if you accept advertising or sponsorships that aren’t substantially related to your tax-exempt purpose, you may unwittingly expose your organization to UBIT liability. The rules governing these types of support are complicated, so it’s important to have a basic understanding of what is and what isn’t potentially taxable. [...]

    Published On: August 3, 2021Categories: Featured, Not for Profit
  • Cryptocurrency donations: Will your nonprofit accept them?

    Cryptocurrency has gone mainstream, and if you’ve been sitting on the fence about accepting donations in virtual currency, it’s time to make a decision. But before your not-for-profit says “yes” to a Bitcoin (or other cryptocurrency) gift, make sure you understand the issues involved — including the risks. Virtual currency = risk Cryptocurrency refers to a decentralized form of digital currency that’s tracked in a [...]

    Published On: July 15, 2021Categories: Featured, Not for Profit
  • Tackling volunteer liability issues

    During the pandemic, your not-for-profit may have been forced to operate without your dedicated volunteers. It has probably come as a great relief to welcome them back in person. However, volunteers, like employees, represent some risk to your organization. For example, you could be exposed to lawsuits if volunteers are harmed or harm others while volunteering for you. What’s the risk? Allegations of negligence or [...]

    Published On: July 5, 2021Categories: Featured, Not for Profit
  • Is your nonprofit complying with federal procurement requirements?

    “Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards” (Uniform Guidance) applies to all not-for-profits that accept federal funding. It has been updated and amended several times, most recently in 2020. So if you haven’t reviewed your own organization’s procurement policies lately, now’s a good time to ensure you’re in compliance. Pay attention to amounts Uniform Guidance imposes some strict purchasing requirements on [...]

    Published On: June 29, 2021Categories: Featured, Not for Profit
  • Collective impact projects find strength in numbers

    Collective impact projects are collaborations between not-for-profits, government, businesses and communities with the goal of achieving challenging and complicated social objectives. They can succeed in ways that simply aren’t available to individual organizations. But they also require a level of commitment your nonprofit may not be prepared for. A common cause Collective impact is more than just collaboration. Its originators describe it as the commitment [...]

    Published On: June 26, 2021Categories: Featured, Not for Profit
  • What nonprofit board members need to know about fiduciary duties

    It takes more than dedication and enthusiasm for your not-for-profit’s cause and programs to make a good board member. The most critical duty for all board members is being a fiduciary. This means, among other things, that they can be trusted to always act in their nonprofit’s best interests, avoid unnecessary risk, make decisions thoughtfully and execute them efficiently. Core duties Not all board members [...]

    Published On: June 14, 2021Categories: Featured, Not for Profit
  • Nonprofits: Limit disaster damage with a plan

    COVID-19 was a kind of disaster most not-for-profits weren’t prepared for. As your organization recovers from this unusual event, don’t let it become vulnerable to other, more common, threats. Every nonprofit needs a formal disaster plan for such risks as a fire, natural disaster or terrorist attack. Isolate threats No organization can anticipate or eliminate all possible risks, but you can limit the damage of [...]

    Published On: June 7, 2021Categories: Featured, Not for Profit
  • Making the decision to hire new nonprofit staffers

    Many Americans remain unemployed due to the COVID-19 pandemic — at least 9.8 million at the end of April, according to the U.S. Bureau of Labor Statistics. But that’s expected to change quickly as employers ramp up hiring activities. If your not-for-profit will soon need new staffers, you might want to start putting out feelers now. Obviously, the decision to hire is a difficult one considering [...]

    Published On: May 28, 2021Categories: Featured, Not for Profit
  • Is a merger in your nonprofit’s post-pandemic plans?

    As the COVID-19 pandemic finally seems to be fading in the United States, your not-for-profit organization may be making plans for its post-pandemic future. Is a merger with another nonprofit part of these plans? A merger can provide your organization with greater stability and resilience so that you can survive any new challenges that comes your way. But a merger isn’t always the best solution [...]

    Published On: May 25, 2021Categories: Featured, Not for Profit
  • Time to plan an in-person board retreat?

    As states open for business and the need for social distancing recedes, your not-for-profit organization may want to think about scheduling an in-person retreat for your board of directors. Members are likely to welcome the opportunity to see one another again in the flesh and a retreat can provide them with a chance to de-stress and think creatively about how your nonprofit should move forward [...]

    Published On: May 24, 2021Categories: Featured, Not for Profit
  • Do you know the new accounting rules for gifts in kind?

    If your not-for-profit organization accepts contributions of nonfinancial assets, such as land, services and supplies, you should know about Financial Accounting Standards Board (FASB) rules approved last year. Accounting Standards Update (ASU), Not-for-Profit Entities (Topic 958): Presentation and Disclosures by Not-for-Profit Entities for Contributed Nonfinancial Assets is intended to increase transparency around gifts in kind. Inflated values The updated rules were generated in response to [...]

    Published On: May 11, 2021Categories: Featured, Not for Profit
  • Minimize the need to make year-end financial adjustments

    If your not-for-profit periodically prepares internal financial statements for your board, you may have noticed that your auditors propose adjustments to these interim statements at year end. Why do auditors do this? Generally, it reflects differences due to cash basis vs. accrual basis financial statements. But you can help minimize the need for such adjustments. Here’s how. Cash basis accounting Under cash basis accounting, income [...]

    Published On: May 4, 2021Categories: Featured, Not for Profit
  • Reduce your nonprofit’s liability risk with D&O insurance

    Not-for-profit organizations may operate under the assumption that their missions and their board members’ good intentions protect them from litigation. Sometimes, this assumption is proven wrong with a lawsuit. To protect your leaders from financial exposure, consider directors and officers (D&O) liability insurance. This coverage allows board members to make decisions without fear that they’ll be personally responsible for any related litigation costs. Protecting key [...]

    Published On: May 3, 2021Categories: Featured, Not for Profit