Accurate, relevant and timely financial information is key to making good decisions for not-for-profit executives and board members. But do all of your board members really understand the numbers they receive and what they mean to your organization? Here's how to find out and what you can do to get board members up to speed.
In the News
Thursday, April 22, 2021
To qualify as a tax-exempt entity, a not-for-profit organization must comply with certain federal income tax laws. And to prove compliance, you must maintain records. There's no required recordkeeping system. In fact, your organization can choose any system that suits its activities and clearly shows your income and expenses.
Thursday, April 8, 2021
Organizations that are created to provide goods or services exclusively (or primarily) to Section 501(c)(3) organizations (or governmental entities) may think that this purpose is sufficient to also qualify them under tax law. However, providing commercial type services exclusively to exempt organizations is not by itself an exempt purpose. Much more is required for qualification under the rules of Internal Revenue Code Section 501(c)(3) than just having a mission to assist charitable organizations.
Thursday, March 25, 2021
Documentation and accountability are always important in business, but possibly even more so for not-for-profits. The sheer number of duties can be daunting. That's why it's critical to have tools that allow you to stay on top of the details.
Thursday, March 11, 2021
Many not-for-profit organizations are concerned about the provisions of the Tax Cuts and Jobs Act (TCJA) that are affecting charitable giving. But the law also contains some important requirements involving unrelated business income tax (UBIT). If you engage in "unrelated business" — and even if you don't — you could find that your UBIT liability increases under the law.
Thursday, February 25, 2021
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.
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.