IRS rules governing private foundations are complex and include many exceptions, which is why your foundation needs to write and follow a detailed conflict-of-interest policy. Taking this proactive step can help you avoid potentially costly public and IRS attention. Casting a wide net Conflict-of-interest policies are critical...
Auditors examining a non-profit’s financial statements spend considerable time on the revenue figures. They look at the accounting methods used to record revenues and perform a detailed income analysis. You can use the same techniques to increase your understanding of your organization’s revenue profile. In...
Because donations to charity of cash or property generally are tax deductible (if you itemize), it only seems logical that the donation of something even more valuable to you — your time — also would be deductible. Unfortunately, that is not the case. Donations of time...
If your non-profit wants to improve its budgeting, forecasting, fundraising, or other functions but is having a hard time identifying both problems and solutions, data analytics can help. This form of business intelligence is already considered invaluable in the for-profit world, and it can be...
Auctions have long been lucrative fundraising events for non-profits, but these events do come with tax compliance responsibilities. Acknowledging item donations If you auction merchandise or services donated to your charity, you should provide written acknowledgments to the donors of the auctioned items valued at $250 or...
Your non-profit’s board of directors meetings do not always need to be performed up-close and personal in the same room. Many organizations hold virtual board meetings via phone and with web-based applications. Participation may improve It can be difficult to secure full board meeting attendance, but going...
The amount of money your non-profit raises in fundraising campaigns is meaningful but so is how efficiently you are able to raise it. Such costs can be measured using two metrics: cost ratio and return on investment (ROI) – each are discussed below. Find a formula These...
Whether it is in the business, government, or non-profit sector, ethics seem to be on everyone’s minds these days. To make sure your supporters and community understand your nonprofit organization’s values and the policies that uphold them, a formal code of ethics is essential. Here...
Your non-profit probably already ensures that donors receive a receipt with information about claiming a charitable contribution deduction on their tax return. However, your obligations may go further than that. For noncash donations, you might have responsibilities related to certain tax forms. IRS Form 8283 for...
If your non-profit relies heavily on a few funding sources — for example, an annual government or foundation grant — what happens if you suddenly lose that support? The risk may be compounded if you generally spend every penny that comes in the door and...