Categories for Non-Profit

Aug
14
2017

Is one of your nonprofit’s board members behaving badly?

 

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. Unfortunately, what begins as a good relationship can sour over time, and you may find yourself in the tough position of having to “fire” a board member.

8 deadly sins

Several behaviors can interfere with your board’s efficacy. Pay particular attention to members who:

1.

Aug
07
2017

Reporting collaborative activities: A complex issue for nonprofits

 

More and more not-for-profits are joining forces to better serve their clients and cut costs. But such relationships can come with complicated financial reporting obligations.

Starting with the simplest

For accounting purposes, the simplest relationship between nonprofits may be a collaborative arrangement. These are typically contractual agreements in which two or more organizations are active participants in a joint operating activity — for example, a hospital that’s jointly operated by two nonprofit health care organizations.

Jul
31
2017

Should your nonprofit accept digital currency donations?

 

When United Way began accepting Bitcoin contributions a few years ago, many not-for-profits started to rethink their policy against accepting digital (also known as virtual and crypto) currency donations. It’s understandable if your organization remains wary of money that’s neither printed nor backed by a central bank or government. But there are potential advantages to accepting this uniquely 21st century form of support.

Brave new benefits

Accepting virtual currencies may allow your nonprofit to receive donations of any size from people worldwide who don’t have easy access to global financial systems.

Jul
24
2017

Nonprofits: Harness the power of the personal appeal

 

You’ve probably heard it before: People don’t give to causes — they give to those asking on behalf of a cause. That’s why a personal appeal continues to be such a powerful not-for-profit fundraising tool. In fact, requests from friends or family members typically drive most charitable donations. By appealing to their networks, board members can be particularly effective fundraisers.

4 strategies

Here are some time-tested strategies for improving the effectiveness of your board’s outreach:

1.

Jul
17
2017

When does your nonprofit owe UBIT on investment income?

 

In recent years, the IRS has increased its scrutiny of not-for-profits’ unrelated business income (UBI). Dividends, interest, rents, annuities and other investment income generally are excluded when calculating unrelated business income tax (UBIT). However, there are two exceptions where such income is taxable.

1. Debt-financed property

When your nonprofit incurs debt to acquire an income-producing asset, the portion of the income or gain that’s debt-financed is generally taxable UBI.

Jul
10
2017

Why your nonprofit must avoid excess benefit transactions

 

Not-for-profits that ignore the IRS’s private benefit and private inurement provisions do so at their own peril. These rules prohibit an individual inside or outside a nonprofit from reaping an excess benefit from the organization’s transactions. Violation of such rules can have devastating consequences.

Defining terms

A private benefit is any payment or transfer of assets made (directly or indirectly) by your nonprofit that’s beyond reasonable compensation for the services provided or the goods sold to your organization,

Jul
07
2017

Managing the risks of your nonprofit’s special events with insurance

 

Not-for-profit special events can be lucrative from a fundraising standpoint, but they also carry significant risks. Proper insurance coverage can help protect your organization.

Special event, special planning

Risks associated with special events run the gamut from accidents and personal injury, to fraud and theft, to cancellation due to inclement weather or nonappearance by a featured performer. However, it’s possible to buy designated “special events insurance.”

These policies provide coverage for lawsuits and claims brought by a third party who suffered a loss connected to the event.

Jun
26
2017

3 types of information your nonprofit’s board needs

 

Information is power. And regularly supplying information to your not-for-profit’s board of directors is the key to the board properly fulfilling its duties. This doesn’t mean you have to share every internal email or phone message. Board members should, however, receive and understand information that will help them work together and better serve your organization.

Three types of information are important to share with your board:

1.

Jun
19
2017

Social impact bonds can fund nonprofit social services and offer other benefits

 

Social impact bonds provide a relatively new method of funding social programs. Several U.S. cities already pay some not-for-profit social service providers through such programs. Might your organization benefit?

In a nutshell

Traditionally, government agencies extend funding to nonprofit social service providers to pay for specific activities or delivery models. But what if the nonprofit lacks the upfront money to pursue the required outcomes? Few organizations have the deep pockets necessary to fully finance programs themselves.

Jun
12
2017

Should your nonprofit take out a loan?

 

Debt is an integral part of many for-profit companies’ strategic plans, yet it has traditionally carried a stigma in the not-for-profit world. That view is changing, as more organizations borrow money for major capital purchases, new program funding and other reasons. But before your nonprofit borrows, it’s important to understand that it takes prudent financial management and reliable donor support to pay back a loan.

Exhaust other options

You may think your organization has a good rationale for borrowing,