Raffles are popular fundraisers for non-profits, but they’re subject to strict tax rules. State laws on non-profit-sponsored raffles can vary significantly, but non-profits must comply with federal income tax requirements linked to unrelated business income (UBI), reporting, and withholding. UBI tax Non-profits are required to pay...
Is your non-profit overpaying unemployment tax? Many employers are and do not know it. Here is how to find out and possibly reduce unemployment costs. Ensure accuracy The burden is on employers to ensure unemployment charges are accurate and to seek repayment if they believe they have...
An operating reserve is an unrestricted and relatively liquid portion of a non-profit’s net assets. Securing this reserve for use in emergencies or simply when your budget falls short is critical to your organization’s security and long-term survival. Long-term effort Building an adequate operating reserve takes time...
Traditionally, Americans have supported charities not only for tax breaks and a vague sense of ‘giving back’ but also for a variety of other financial, emotional, and social reasons. Understanding what motivates donors and how their motivations vary across demographic groups can help your non-profit...
Non-profits that direct and benefit from the actions of their volunteers can be held accountable if those individuals are harmed or harm others on the job. Lawsuits involving volunteers often arise from allegations of negligence or intentional misconduct, even when volunteers act outside the scope...
Many non-profits look beyond the United States to boost revenue. They recruit members, sell products, promote conferences, or solicit donations abroad. But it is important to look before you leap borders; consider not only potential windfalls but also pitfalls. Research your target Before your non-profit invests funds...
To err is human, but some errors are more consequential and harder to fix than others. Most non-profit organizations cannot afford to lose precious financial resources, so you need to do whatever possible to reduce accounting and tax mistakes. Get started by considering the following...
Churches, synagogues, mosques, and other religious congregations are not required to file tax returns, so they might not regularly hire independent accountants. However, regardless of size, religious organizations often are subject to other requirements, such as paying unrelated business income tax (UBIT) and properly classifying...
You cannot serve the needs of your non-profit’s members unless you know what those needs are. Many organizations take the pulse of their membership with regular surveys but fail to conduct them strategically and, therefore, end up with useless information. Instead, increase the efficiency of...
Communication breakdowns between a non-profit’s development and accounting departments can lead to confusion, embarrassment, and even financial problems. Here are three ways your organization can facilitate cooperation between these two critical functions. Recognize differences Accounting and development typically record their financial information differently, which is...