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...
On September 17, the Financial Accounting Standards Board (FASB) issued an accounting rule that will provide more detailed information about noncash contributions charities and other non-profit organizations receive known as “gifts in kind.” Here are the details. Need for Change Gifts in kind can play an important...
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...
Financial audits conducted by outside experts are among the most effective tools for revealing risks in non-profits. They help assure donors and other stakeholders about your stability — so long as you respond to the results appropriately. In fact, failing to act on issues identified...
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...