Non-Profit Archives - Page 4 of 6

Apr
17
2017

5 accounting mistakes your nonprofit should avoid

To err is human, but your not-for-profit’s supporters, not to mention the IRS, may be less than forgiving if errors affect your financial books. Fortunately, if you attend to accounting details, you can avoid these common pitfalls:

1. Failing to follow accounting procedures. Even the smallest nonprofit should set formal, documented and detailed procedures for managing financial and bookkeeping chores. Your process should include all aspects of managing your organization’s money — how to accept,

Apr
10
2017

Protect your nonprofit by cross-training staff

What would happen if one of your not-for-profit’s key people suddenly quit or had to go on long-term disability? Would you be able to conduct business as usual? To prevent a critical function from possibly coming to a standstill, consider cross-training staff.

Organization benefits

Cross-training personnel means that you teach them how to do one another’s jobs. That way, if one staffer is unavailable, another can jump in and do the job.

Apr
03
2017

Simple ways to improve your nonprofit’s cash flow

Declining donations, dues, grants or sponsorship funds may lead to not-for-profit budget deficits. But you can reduce the risk of cash flow crunches by making relatively minor changes to your cash management practices.

Expedite receipts

The sooner your organization accumulates cash, the better your cash flow. For example, consider moving your fundraising calendar ahead. By sending an appeal in July rather than November, your nonprofit may receive significant cash in late summer.

Mar
27
2017

Nonprofits and their staffers can save tax with an accountable plan

Your not-for-profit can’t generally reimburse employees for business expenses tax-free just because staffers submit expense records. However, you can if you have a properly executed accountable plan. Under such a plan, reimbursement payments will be free from federal income and employment taxes for recipient employees and not subject to withholding from their paychecks. Additionally, your organization benefits because the reimbursements aren’t subject to the employer’s portion of federal employment taxes.

Follow the rules

Of course,

Mar
22
2017

The Section 1031 exchange: Why it’s such a great tax planning tool

Like many business owners, you might also own highly appreciated business or investment real estate. Fortunately, there’s an effective tax planning strategy at your disposal: the Section 1031 “like kind” exchange. It can help you defer capital gains tax on appreciated property indefinitely.

How it works

Section 1031 of the Internal Revenue Code allows you to defer gains on real or personal property used in a business or held for investment if,

Mar
20
2017

Why nonprofits need continuity plans

Most not-for-profits are intensely focused on present needs — not the possibility that disaster will strike sometime in the distant future. Yet it’s critical that all organizations have a formal continuity plan to guide them should a natural or manmade disaster disrupt operations.

Formal plan

You likely already have many of the necessary processes in place — such as safely evacuating your office or backing up data.

Mar
13
2017

Does your nonprofit need to register in multiple states?

If your not-for-profit solicits funds online — or uses other fundraising methods that cross state boundaries — it may need to register in multiple jurisdictions. We’ve answered some commonly asked questions.

My charity receives occasional contributions from out-of-state donors. Do I need to register with those states? Yes, but only if you’re actually asking for donations in those states. The critical activity is soliciting, not accepting, funds.

Mar
06
2017

Should your nonprofit outsource HR management?

If your not-for-profit has too much work and not enough staff to go around, consider outsourcing your human resources function. It could give your internal team more time to spend on other core duties, mission-driven programs and strategic plans.

Benefits and drawbacks

Labor-intensive responsibilities such as recruiting, training, benefits planning and administration, compliance monitoring, leave management, and performance reviews can all be outsourced. Transferring all or some of these responsibilities to the right outside party can vault your organization to a higher level of professionalism and efficiency in those areas.

Feb
27
2017

Make sure your nonprofit’s bylaws are on point

Bylaws are the rules and principles that define your not-for-profit’s governing structure. Your board and staff need to be familiar with exactly what the bylaws contain — and what they don’t. If they’re incomplete or don’t reflect the organization’s current mission, revising them is critical.

What do they contain?

Your bylaws might cover such topics as the:
• Broad charitable purpose of your organization,
• Size and function of your board,

Feb
20
2017

What to do if your nonprofit receives an IRS audit letter

In recent years, the IRS has increased its scrutiny — including actual audits — of not-for-profits. Do you know what to do if your organization receives an audit letter?

What is an audit?

An audit begins with the initial contact from the IRS and continues until a closing letter is issued. Before closing an audit, an officer of your nonprofit, your CPA and the IRS agent will discuss the agent’s conclusions at a closing conference.