Many not-for-profit organizations rely on income from endowment funds to help meet operating expenses, ease cash-flow problems and supplement each year’s annual budget. Although endowments are often a financial bedrock for nonprofits, there are endowment fund rules that you must follow.
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In one of our previous posts, we discussed toxic behaviors that often warrant firing a board member. Having an ineffective board of directors is not an option for a successful nonprofit, but removing a board member can be awkward and difficult.
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It seems inevitable that your nonprofit will need to replace a top executive within your organization at some point, and having the right executives in place is imperative to your organization’s success. Why not prepare your staff and Board now? Discuss these four basic steps of the executive search process today so you’re ready when it’s time to find a new person to lead your nonprofit organization.
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Your not-for-profit has probably spent a lot of time and effort attracting board members who have the knowledge, enthusiasm and commitment to make a difference to your organization.
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Investment fraud in nonprofit organizations, such as Ponzi schemes, is common. A 2013 analysis by The Washington Post found that more than 1,000 nonprofits had discovered fraud at their organizations between 2008 and 2012. Fraud cases can cause significant financial loss for not-for-profits, but the biggest consequence is often the loss of donors and the marring of the organization’s public reputation. Donor loss can, of course, have long-term financial implications beyond the initial post-fraud loss.
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As funding sources diminish, an increasing number of nonprofit organizations are collaborating, merging or being acquired by other organizations. Pooling resources cuts costs and often increases efficiency, but it also means complicated accounting work and uncharted reporting obligations. Here, we'll explore different ways nonprofits are collaborating and what it means from an accounting and financial reporting perspective.
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It is difficult to develop new and successful fundraising ideas for nonprofits. Instead of starting from scratch, why not amplify your current fundraising methods by personalizing them?
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It is often assumed that all nonprofit organizations are completely tax exempt, but do nonprofit organizations pay taxes? While most nonprofits do have exempt status, they can still be subject to tax if they have unrelated business taxable income (UBTI). UBTI is subject to unrelated business income tax (UBIT).
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Unlike public companies, nonprofit boards aren’t required to have audit committees. So it’s not surprising that 42% of nonprofits don’t, according to Stanford Graduate School of Business’s 2015 Survey on Board of Directors of Nonprofit Organizations.
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The Tax Exempt and Governmental Entities (TE/GE) division of the IRS consists of three subdivisions, as follows:
- Exempt Organizations subdivision (EO)
- Employee Plans subdivision (EP)
- Federal State and Local Governments subdivision (FSLG)
The 2016 tax year brings specific compliance issues into focus for each of these three subdivisions.
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