It would be an understatement to say 2020 has been challenging. Leaders of non-profits still standing are justified in worrying about strained budgets and their ability to deliver on their organization’s promises during a pandemic, financial crisis, and time of social and political upheaval. Staffers are...
In this pandemic year, many non-profits are scrambling to find new sources of revenue to replace donor contributions and other lost income. If this sounds like your charity, you might want to consider licensing your name and brand to a for-profit business. Ensuring Success When licensing arrangements...
Collective impact initiatives are growing among non-profits. Such initiatives are about more than collaboration. They represent the commitment of a group of organizations to a common agenda for solving a specific social problem. This group can include the non-profits themselves, government agencies, businesses, and constituent...
Most for-profit companies compensate the directors who serve on their boards, whereas non-profit board members generally serve on a voluntary basis. However, there are circumstances in which you might want to consider compensating those who serve on your board. Advantages & Drawbacks Board member compensation comes with...
Does your private foundation have a detailed conflict-of-interest policy? If it does not — or if you do not follow the policy closely — you could face IRS attention that results in penalties and even the revocation of your tax-exempt status. Here is how to...
Employees or independent contractors? It is not only for-profit companies that struggle with the question of how to classify workers for federal tax purposes. Non-profit organizations must withhold and pay Social Security, Medicare, and unemployment taxes for employees, but not for contractors. (There also may...
Non-profits increasingly are adopting a corporate world tool: financial dashboards. A dashboard is a summary of an organization’s progress toward a specific goal over time — or a snapshot of its current situation. Dashboards are designed to help boards and other constituents visualize important metrics...
Current financial pressures mean that your non-profit probably cannot afford to pass up offers of support; however, you should be careful about blindly accepting grants. Smaller non-profit organizations that do not have formal grant evaluation processes are at risk of accepting grants with unmanageable burdens...
Does your non-profit have a code of ethical conduct? According to the Association of Certified Fraud Examiners, establishing and enforcing an ethical code is associated with 50 percent lower fraud losses. Codes of conduct are not just about fraud prevention, though. Holding staffers and board...
Non-profits sometimes team up with other entities to boost efficiency, save money, and better serve both organizations’ constituencies. This can be a smart move — so long as your accounting staff knows how to report the activities of the two organizations. How you handle reporting...