Tips to help prevent accounting and tax errors - Although failing to file a Form 990 with the IRS when required to do so is probably a more serious mistake, filing it with data errors isn’t recommended. Similarly, your not-for-profit should strive to be as accurate as possible when preparing accounting and other tax documents. Carelessness can cost you support from donors and grant makers […]
Game on! Just make sure your nonprofit follows tax rules - If you’re starting to plan activities for a 2023 fundraiser, consider gaming — for example, bingo, poker, raffles and even casino-type games. Such games can be a great way to engage supporters and raise more revenue than your not-for-profit might otherwise. However, gaming isn’t without potential pitfalls. There are strict tax rules governing these activities, […]
Put an advisory board to work on your nonprofit’s challenges - A community health center desperately needed to upgrade its computer network. Unfortunately, the not-for-profit had little IT expertise on staff or on its board of directors. That’s when it decided to form an advisory committee made up of people who could analyze the situation and help guide IT decision-making. This included a retired technology company […]
New accounting standard: Does it affect your nonprofit? - An accounting standard from the Financial Accounting Standards Board (FASB) that takes effect in mid-December, 2022, could require your not-for-profit organization to act. Accounting Standards Update (ASU) No. 2016-13, Financial Instruments — Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments — was primarily intended for financial institutions. But if your nonprofit adheres to Generally […]
Protecting your nonprofit from data breaches - By now, all organizations — for-profit and not-for-profit — know about the risk of cyberattacks. Why then, would any nonprofit fail to secure its network and digital assets? One reason is cost. Cybersecurity can be expensive. Yet according to IBM’s “2022 Cost of a Data Breach Report,” a data breach in the United States leads to […]
Putting accountability into practice - At its base, “accountability” means taking responsibility for outcomes — both good and bad. But one common byproduct of accountability is that results are actually more likely to be positive than negative. That’s because accountable managers work proactively, seeking solutions to potential problems instead of sidestepping them. Here are some other ways for your not-for-profit […]
The audit is over. Now what? - Whew! That’s probably your reaction when outside experts announce that their audit of your not-for-profit is complete. But even if auditors have left your premises and returned the documents they’ve reviewed, the work isn’t really over. Not only do your executive director and board need to review the audit report, but it may be necessary […]
Keep your religious congregation on the financial straight and narrow - Religious congregations usually enjoy greater protection from federal government oversight than other not-for-profit organizations. For example, the IRS can’t conduct a “church tax inquiry” unless a high-level Treasury Department official has written evidence that a religious organization has violated tax-exempt rules. However, you’d do your faith group a great disservice it you failed to observe IRS […]
The FLSA asks your nonprofit to accurately classify staffers - Are your not-for-profit’s staffers employees or independent contractors? It’s an important question because under the Fair Labor Standards Act (FLSA), misclassifying workers can lead to penalties and other costs. If you haven’t reviewed your staffers’ status since the start of the pandemic, now may be a good time — particularly if you’ve recently experienced staff […]Don’t let disaster fraud victimize your nonprofit - It’s been a busy year for natural disasters, with Hurricane Ian only the latest calamity to befall the United States and its territories. If your not-for-profit operates in or serves clients in a disaster zone, you know how difficult the recovery process can be. Unfortunately, fraud perpetrators attempting to profit off the misery of others […]