Do you prepare internal financial statements for your board of directors on a monthly, quarterly, or other periodic basis? Later, at year end, do your auditors always propose adjustments? What is going on? Most likely, the differences are due to cash basis vs. accrual basis...
Non-profits often struggle with valuing non-cash and in-kind donations. Whether for record-keeping purposes or when helping donors understand proper valuation for their charitable tax deductions, the task is not easy. Although the amount that a donor can deduct generally is based on the donation’s fair...
To protect the organization, demonstrate openness, and support the greater good, your non-profit needs to embrace accountability. Doing so will also help you fulfill your fiduciary responsibilities to donors, constituents, and the public. Fairness & clarity Accountability starts by complying with all applicable laws and rules. As...
Insurance is the cornerstone of any non-profit’s comprehensive risk management plan. It cannot protect your organization from every contingency, but it is critical to protecting the people, property, funds, and support you depend on. Must-have policies Many kinds of insurance coverage are available, but it is unlikely...
If your non-profit is contemplating a merger or acquisition with another organization, you have a lot of work ahead of you. One of the most daunting challenges is keeping leaders focused and invested in the process. Most non-profits are run by both board members and...
If you are charitably inclined and you collect art, appreciated artwork can make one of the best charitable gifts from a tax perspective. In general, donating appreciated property is doubly beneficial because you can both enjoy a valuable tax deduction and avoid the capital gains...
How much are your volunteers worth? The non-profit advocacy group Independent Sector estimates the value of the average American volunteer at $24.69 an hour. Volunteers who perform specialized services may be even more valuable. Whether your entire workforce is unpaid or you rely on a few...
Contrary to popular belief, it is usually perfectly legal to compensate non-profit board members, and sometimes it might even be necessary. But is it right for your organization? Pros & cons Board member compensation comes with several pros and cons to consider. Your organization might, for example,...
Non-profits use special events to raise large amounts in a short period of time. Most often, the donor receives a direct benefit from the event — such as dinner or participation in a gaming activity. However, special events do not always meet their fundraising goals....
Licensing your non-profit’s name to a for-profit company can provide a valuable new revenue source — but it also can be risky. If you are considering a licensing arrangement, ensure that the partnership really will generate funds and, possibly more important, a positive impression of...