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.
In the News
Tuesday, September 27, 2022
Tuesday, September 6, 2022
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.
Tuesday, August 23, 2022
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.
Tuesday, August 9, 2022
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.
Wednesday, July 27, 2022
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.
Tuesday, July 12, 2022
Many not-for-profit organizations have discovered there can be strength in numbers. In recent years, the number of collaborations, partnerships and even full-scale mergers in the nonprofit sector have surged. These joint ventures can conserve resources, help with fundraising and, in many cases, expand the services each group provides.
Thursday, June 30, 2022
Is your not-for-profit the same organization it was three years ago? Are your stakeholders the same now as then? What about your community and its support?
It's been said that the only thing certain in life is change, so you likely answered "no" to each of these questions. Change is a key reason why your nonprofit needs to revisit and revise its strategic plan regularly. And you can make your strategic planning process as dynamic as change itself. But it takes focus and commitment.
Tuesday, June 21, 2022
It's critical for your organization to keep accurate tax records and maintain a good recordkeeping system. This way, you can respond to an IRS audit or prove compliance with various laws should it become necessary.
However, you don't have to retain every paper document or electronic file that crosses your desk. The IRS requires organizations to keep certain essential documents on file. These records back up accounting entries, reported taxable income, expenses and deductions.
Thursday, May 26, 2022
Not-for-profit organizations often struggle with valuing non-cash and in-kind donations, including the value of houses and other real estate. Whether for recordkeeping purposes or when helping donors understand proper valuation for their charitable tax deductions, the task isn't easy.
Although the amount that a donor can deduct generally is based on the donation's fair market value (FMV), there's no single formula for calculating FMV for every type of gift.
Note: A donor can't claim a tax deduction for the contribution of services. Thus, this article focuses on valuing gifts of property for tax purposes rather than financial accounting purposes.
Thursday, May 5, 2022
Does your organization have a succession plan in place? And, if it does, is it well documented? Some not-for-profits delay detailed succession planning, thinking of it as a project they'll get to "someday." But that's a mistake.
Like making future plans in your private life, creating a succession plan for your organization is a necessity. And the earlier you start planning, the better. You'll come across information that needs to be documented for the successor — and you might also spot some issues that need to be cleared up before the transition.
