Nonprofit accounting is different

Carolyn, the executive director of an educational nonprofit, was thrilled, after a long search, to welcome two new members to her charity’s board of directors — both from the for-profit business world. However, she was a little concerned about a few of the comments and questions that arose in their first board meeting. It was […]

After the TCJA: How to keep the giving going this holiday season

Thanksgiving through the end of the year is traditionally the big fundraising season for nonprofits. In one GuideStar survey, U.S. charities received as much as 50% of their annual donations between October and December. And although the holiday spirit moves many donors to give, it’s the charitable tax deduction that typically spurs them to make […]

New revenue guidance provides direction to nonprofits

In 2014, the Financial Accounting Standards Board (FASB) issued a new standard on revenue recognition (ASU 2014-09). The ASU was intended to clarify and standardize across various sectors revenue reporting. But many nonprofits found the new standard confusing because it didn’t account for the unique nature of revenue sources such as contributions and grants. Now, […]

Employee retention: Keep them if you’ve got them

In April, the U.S. unemployment rate fell to 3.9%, its lowest point since December 2000. That’s great for the economy — but not so great for organizations struggling to remain fully staffed. Unfortunately, many nonprofits are in this position. They can’t afford to pay employees as much as their for-profit counterparts and, thus, have a […]

Educating donors about what they can — and can’t — deduct

Education may not officially be part of your nonprofit’s mission. But while working with donors, you’ve probably noticed that many are confused about the federal tax deductibility of their contributions. To help prevent unwelcome surprises when donors file their returns, inform them about the tax benefits of different types of donations. Cash, ordinary income and […]

How to secure lasting corporate support

According to Giving USA, businesses donated $20.77 billion to charity in 2017. Even if your organization already benefits from this largesse, you’d probably like to increase the amount you receive from companies and find additional ways to partner with the for-profit sector. Increasing corporate commitment is similar to establishing relationships with individual donors, but there […]

Stop employee credit card abuse before it starts

A nonprofit staffer charged legitimate travel-related expenses to her employer’s credit card. Although she intended to file an expense report, her employer never asked for it — nor did the employer question her when it received the card statement. The employee was recently divorced and under unusual financial pressure, so when she couldn’t pay for […]

3 tips for achieving your mission more cost-effectively

Do you want to control costs and improve delivery of your nonprofit’s programs and services? It may not be as difficult as you think. Several simple initiatives can make a big difference in how efficiently your organization operates. Here are three: Tip #1: Monitor measures that matter First, you need to know how much of […]

Planning can help your nonprofit minimize negative effects

Months after the Tax Cuts and Jobs Act (TCJA) was signed into law, nonprofits are still trying to assess its consequences. Some of the early proposals that raised alarms in the charitable sector — such as a repeal of the Johnson amendment — didn’t make it into the final version of the law. But there’s […]

Upcoming changes for not-for-profit organization financial statements

Some changes in your year-end financial statements will be required that are designed to more clearly indicate your organization’s financial position as a result of a recent Financial Accounting Standards Board Accounting Standards Update (FASB ASU). The changes prescribed in Not-for-Profit Entities (Topic 958): Presentation of Financial Statements of Not-for-Profit Entities (ASU 2016-14) will affect […]