The Internal Revenue Service (IRS) doesn’t require nonprofits to have independent audits, but that doesn’t mean your nonprofit never needs an audit. Some federal, state, and local government agencies require audits, as do some banks and foundations. Generally, the requirements relate to the nonprofit’s size or spending. When an Audit Is Required An independent audit […]
Tag: Nonprofit
IRS Issues Advice for the Tax Exempt
If you’re planning to enter the world of tax-exempt organizations, you first need to understand what a tax-exempt organization actually is. According to the IRS, the organization must fall into one of the following categories: charitable, religious, educational, scientific, literary, testing for public safety, fostering national or international amateur sports competition, or preventing cruelty to […]
Management at a Nonprofit
As a manager, you are responsible for ensuring that your team is motivated, engaged and productive. This is true in any organization, but it has special meaning in a nonprofit, where you are all (hopefully) working toward a common mission. Indeed, how you go about this process is just as important as the process itself. […]
Protect Your Organization’s Fragile Tax-Exempt Status
Not-for-profit organizations are different from for-profit businesses in many vital ways. One of the most crucial differences is that under Section 501(c)(3), Sec. 501(c)(7) and other provisions, nonprofits are tax-exempt. But your tax-exempt status is fragile. If you don’t follow the rules laid out in IRS Publication 557, Tax-Exempt Status for Your Organization, the IRS […]
To Find New Revenue Opportunities, Think Like An Auditor
Want to increase your not-for-profit’s revenue? First try analyzing current income as a professional auditor might. Then, you can apply your conclusions to setting annual goals, preparing your budget and managing other aspects of your organization. Compare contributions Compare the donation dollars raised in past years to pinpoint trends. For example, have individual contributions been […]