Non-Profit Archives - Page 2 of 6

Oct
30
2018

Nonprofits: Here’s how to embrace accountability

Embracing accountability helps your nonprofit demonstrate openness and fulfill its fiduciary responsibility. Accountability starts with complying with applicable laws and rules and committing to using resources to support your mission. There can be no accountability without good governance, and that’s ultimately up to your board. Your board needs to understand the importance of its role and focus on big-picture items, not process-oriented details. Finally, communicate accountability with your annual report and Form 990.

Oct
19
2018

Volunteers are assets nonprofits must protect

One not-for-profit advocacy group estimates the value of the average volunteer at $24.69 an hour. Whether your entire workforce is unpaid or you rely on a few volunteers to support a paid staff, these assets must be safeguarded. Consider “professionalizing” your program with formal training, set schedules and performance reviews. To keep volunteers engaged, match their skills and interests with tasks. Also, make the work fun by facilitating friendships with other volunteers through mentoring and volunteer-only activities.

Aug
24
2018

Time-Sensitive Changes to Arizona Tax Credits

EDIT: Correction made to the effective date.

In the past you may have given to various Arizona charitable organizations that allowed for a $1-for-$1 state tax credit on your tax return. These included donations to Qualifying Charitable Organizations, Qualifying Foster Care Charitable Organizations, Public Schools, the Arizona Military Family Relief Fund, and Private School Tuition Organizations (STOs). Changes are coming related to the rules of how this works, and there is a very narrow window (8/24/18-8/27/18) if you wanted to take advantage of making the 2018 tax credit donations before the new rules are made effective.

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:

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:

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.