Athletes say "no pain, no gain." The expression also applies to not-for-profit organizations. The point when the growing pains of an organization begin are prompted less by age than by changes in leadership, size, budget or programming. For example, a small nonprofit may receive national media attention that garners a significant, new source of funds. Or a founder may decide to hire an executive director and administrative staff.
In the News
Thursday, February 25, 2021
Thursday, February 11, 2021
What should you do if your not-for-profit organization is short on employees and you don't have the funds or confidence in the future to return to full staffing? Outsourcing may be the answer.
Thursday, January 28, 2021
A contribution to a charity isn't always a tax-deductible contribution for the donor, as in the case of "quid pro quo" donations. This exchange of one thing for another happens when a charity receives a payment that includes a contribution and, in return, provides the donor with goods or services valued for less than the total payment.
Thursday, January 14, 2021
It's no secret that the number of not-for-profit organizations is growing while the number of grant dollars is shrinking. Shifting from competing for grant funds to cooperating with other organizations can create substantial value for not-for-profits and the people they serve.
Thursday, December 31, 2020
As your not-for-profit strives to use its resources as effectively as possible, you might at some point consider outsourcing the functions that fall under your accounting and financial umbrella. But wait: You'll first need to weigh the possible benefits and pitfalls.
Thursday, December 17, 2020
It's an age of personal responsibility. Even if your nonprofit's board members do everything in their power to make good governing decisions, legal liability can potentially lead to their financial ruin. Here's how to protect your board.
Thursday, December 3, 2020
Not-for-profit organizations that file IRS Form 990 must indicate the number of independent voting members or directors of the governing body. (This is entered on Parts 1 and VI.) The IRS is not the only group interested in these facts. Two other groups also focus on the number of independent directors: state attorneys general and prospective donors. All three groups believe that independent directors are the cornerstone of good governance. In other words, they believe independent directors are less likely to cause the organization to violate prohibitions on private benefit and private inurement.
Thursday, November 19, 2020
Audits have become more important due to increased public and government scrutiny of not-for-profit organizations, their management and their boards. Audits not only provide you with a fair assessment of your organization's financial health, but also can reveal vulnerabilities such as weak internal controls, insufficient cash reserves and poor investment policies. Perhaps most important, regular audits reassure your donors, members and other stakeholders that you run a fit organization.
Thursday, November 5, 2020
Many not-for-profit organizations have discovered there can be strength in numbers. In recent years, there has been an increase in the number of collaborations, partnerships and even full-scale mergers in the not-for-profit sector. These joint ventures can conserve resources, help with fundraising and, in many cases, expand the services that each group provides.