Consider the consequences for your nonprofit if an unexpected event were to deplete your cash on hand. You could be forced to divert funds from essential programs to cover the shortfall. When cash flow is tight or funds are needed due to unforeseen circumstances, an operating reserve fund can help sustain your organization. Building Reserves [...]
When resources are limited and demand for services is high, it’s no surprise that workers at nonprofits may feel stressed and discouraged. If left unchecked, low morale can make fulfilling your mission a lot more difficult. You may be able to turn things around at your organization with these morale-boosting ideas. Cultivate Mutual Respect A [...]
Moving can be a chore, but planning ahead may minimize disruptions and downtime. Don’t Keep It a Secret As soon as possible, notify your donors, vendors, suppliers, constituents, and any other individuals or businesses that come in contact with your nonprofit that you’re relocating. Send email messages, mail out postcards, and put up signs at [...]
Not-for-profit organizations typically engage in a variety of fundraising activities to support their programs and further their tax-exempt purpose. One activity that often resonates with charities and donors alike is the sale of donated vehicles. If your organization currently has or is considering a vehicle donation program, following IRS rules can keep your program running [...]
Charities that conduct vehicle donation programs may jeopardize their tax-exempt status by operating the program in a manner that improperly benefits private parties. Generally, a charity’s tax-exempt status won’t be affected if it does any of the following with donated vehicles: Sells the donated cars and uses the proceeds exclusively to fund its charitable programs [...]
Attracting and retaining donors can be among the more challenging tasks for your nonprofit organization. So you’ll want to take every opportunity to help potential supporters recognize the value of your mission. IRS Form 990, Return of Organization Exempt From Income Tax, offers a convenient vehicle for getting your story out. The Internal Revenue Code [...]
If a for-profit business collects donations on behalf of a charity, are the contributions tax deductible for the donors? If the business is acting as an agent for the charity, the donations may be tax deductible. The agent can also provide contemporaneous written documentation to donors to substantiate their income tax deductions. The agent should [...]
Fundraising plays an essential role in helping nonprofit organizations secure the money they need to fulfill their missions. Creating a budget for fundraising can help an organization utilize available resources most effectively. Determining How Much Is Needed A first step in the budgeting process is calculating the amount of additional capital needed. Subtracting expected income [...]
Accounting Standards Update No. 2016-14 is the first major update to nonprofit accounting in almost 25 years. Becoming familiar with the changes as soon as possible can smooth the transition for organizations. In implementing the new standard, nonprofits will have to make some important decisions, including: • How to disclose information regarding the function and [...]
In an effort to improve how nonprofits present their financial statements, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2016-14, Not-for-Profit Entities (Topic 958): Presentation of Financial Statements of Not-for-Profit Entities. This standard changes how a nonprofit organization categorizes its net assets, as well as the information presented in financial statements needed [...]
