Nov
01
2019
01
2019
Get Ready for Taxes: Get ready today to file 2019 federal income tax returns
Get Ready for Taxes: Get ready today to file 2019 federal income tax returns | Internal Revenue Service http://bit.ly/34fo1sv
Sep
27
2019
27
2019
A policy can help nonprofits look “gift horses” in the mouth
Although it’s hard to say “no” to a generous donor, your not-for-profit needs to be careful about accepting “gift horses.” There are many reasons to decline gifts, from space limitations to unsuitability to your mission. An art collection, for example, may require insurance and offsite storage your nonprofit can’t afford. A gift acceptance policy makes accepting or refusing gifts simple. List the kinds of gifts you can’t manage. For those you can, describe how they’ll be valued,
Sep
20
2019
20
2019
Nonprofits can borrow, but finding a lender may be tough
Borrowing isn’t just for businesses. Many not-for-profits borrow money for major capital purchases, new program funding and even to manage current cash flow. But if you’re hoping to borrow, know that it can be hard to find a lender. The odds of qualifying are better if your organization already has a relationship with the lender, such as the bank where you hold a checking account. Your reason for applying also plays a part in the decision.
Aug
09
2019
09
2019
What to do if your nonprofit receives an IRS audit letter
The IRS’s staffing shortages have been well publicized. But it’s a mistake to assume that the agency has stopped scrutinizing not-for-profits. Don’t panic if you receive an audit letter. The letter will inform about whether the IRS is conducting an in-person, field audit or a correspondence audit. This second type simply requires you to send requested records to the IRS. However, a correspondence audit can turn into a field audit if you don’t respond promptly.
Aug
07
2019
07
2019
Making your nonprofit’s special event profitable
As in the for-profit world, sometimes not-for-profits need to spend money to make money. This is particularly true when it comes to fundraisers. At the same time, it’s critical that you make a budget and stick to it. Estimate expenses for such items as facility rental, food and drinks and entertainment, and then scrutinize the list for what can be reduced or cut. You might be able to find a business sponsor to help defray costs.
May
24
2019
24
2019
Fundraising
Developing a fundraising plan that works
A not-for-profit can have many strengths and still struggle to meet fundraising goals because it lacks a strategic fundraising plan. To develop one, form a fundraising committee consisting of board members, executives and key staffers. Review historical funding sources and approaches, and weigh the advantages and disadvantages of each. Then brainstorm new sources and approaches. A functional budget is crucial. It should include operating expenses,
Dec
27
2018
27
2018
Nonprofit member surveys: Dos and don’ts for the 5 D’s
Many not-for-profits take the pulse of their membership with regular surveys but fail to conduct them strategically and end up with useless information. Maximize your next survey’s effectiveness by focusing on your objectives during every stage of the process. For example, start by defining what you want to learn so that you don’t ask members for information you can’t use. Design your survey with specific questions and explain to participants how you plan to use the results.
Dec
22
2018
22
2018
Don’t let the “commerciality doctrine” trip up your nonprofit
The commerciality doctrine was created to address concerns over not-for-profits competing at an unfair tax advantage with for-profit businesses. Organizations that don’t pass muster could lose their tax-exempt status. Even business activities related to your nonprofit’s exempt purpose could fall prey to the doctrine. Courts consider several factors, including whether you sell to the general public, set prices to maximize profits and accumulate unreasonable reserves. Contact us before launching a revenue-generating business.
Nov
20
2018
20
2018
How successfully has your nonprofit shifted from overhead to impact?
Overhead ratios can help potential donors weed out spendthrift not-for-profits. Yet a narrow focus on this one metric tends to unfairly penalize organizations making reasonable current expenditures and strategic investments. To communicate with donors that “impact” (the indirect effects of measurable outcomes) is the best measure of nonprofit effectiveness, add supplemental financial statements and break out administrative items in your annual report. Such enhancements can help you explain how expenditures result in enhanced programs that positively affect lives.
Nov
10
2018
10
2018
Why your nonprofit’s internal and year end financial statements may differ
If your not-for-profit prepares internal financial statements for your board on a monthly, quarterly or other basis, you may notice that they deviate in significant ways from year end statements. What’s going on? Most likely, differences are due to cash basis vs. accrual basis accounting. Your auditors likely convert your cash basis financials to accrual basis statements. The statements also may differ because your auditors have proposed adjusting certain entries for reasonable estimates.
