Not-for-Profit
Why Private Foundations Need to Avoid Self-Dealing
If you're a leader of a private foundation, you're probably aware of the prohibition against self-dealing transactions between foundations and "disqualified persons."
Commit to Continually Improve Your Nonprofit's Accounting Processes
Do your not-for-profit's accounting processes work perfectly — with no errors, delays or other inefficiencies? If yours is like most organizations, probably not.
Before Your Nonprofit Celebrates That New Grant ...
Most not-for-profits believe they cannot afford to turn down offers of financial support. At the same time, such organizations should not blindly accept funding simply because it is offered. Some grants may come with excessive administrative burdens, cost inefficiencies and lost opportunities.
Operating Reserves Can Help Cushion Financial Blows
First the COVID-19 pandemic wreaked havoc on nonprofit organizations' finances and operations. Now, many organizations are worried about how high inflation and a possible recession might interfere with plans.
A Financial Dashboard Can Take Your Nonprofit Where It Wants to Go
Does your board have a quick and easy way to assess your nonprofit's financial performance? It does if it has a dashboard with carefully chosen and up-to-date key performance indicators ("KPIs").
Handle Nonprofit Restricted Gifts with Care
Most non-profits encourage donors to make unrestricted contributions that will give the organization flexibility to use the money where it is needed most. But there will always be some donors who place restrictions on their gifts, and these require a higher level of responsibility.
Your nonprofit may have an internal controls gap
The typical defrauded nonprofit loses $75,000 per fraud incident, according to the Association of Certified Fraud Examiners - and that does not account for the negative publicity and subsequent lost donations and support that often follow fraud.
5 ways nonprofits can prepare for an audit
Annual audits are not an event many not-for-profit organizations look forward to. However, regular maintenance and preparation specific to an impending audit can make the process less disruptive.
Do you know the new accounting rules for gifts in kind?
Not-for-profit organizations that accept contributions of nonfinancial assets, such as land, services and supplies, need to know about Financial Accounting Standards Board rules approved last year.
Is it time to tune up the accounting function of your nonprofit?
It is a good idea to regularly review the accounting function of a not-for-profit organization for inefficiencies and oversight gaps.
What to do when the audit ends
Financial audits are among the most effective tools for revealing risks in not-for-profit organizations. Independent audits help assure donors and other stakeholders about the stability of an organization so long as the audit results are responded to appropriately.
Private foundations need strong conflict-of-interest policies
Does your private foundation have a detailed conflict-of-interest policy? If not, or if the policy is not followed closely, you could face IRS attention that results in penalties and even the revocation of your tax-exempt status. Learn how to prevent accusations of self-dealing.
Recording gifts in kind and donated services
As unemployment and financial insecurity become widespread during the novel coronavirus (COVID-19) crisis, many not-for-profit donors find themselves unable to provide monetary support to their favorite charities.
How a not-for-profit should prepare for a financial audit
Outside financial audits may seem like an extravagance to not-for-profits working to contain costs and focus on their mission. However, undergoing regular audits allows an organization to identify risks early and act quickly to prevent problems.
How to Protect your Nonprofit's Credit Cards from Misuse
A hypothetical not-for-profit staffer named Britney had maxed out her personal credit cards. So when her car needed repairs, she reached for her employer's card. She reasoned that she would come up with the money to pay the bill before her boss ever saw a statement.
Accounting for contributions and grants is now easier
Accounting for contributions and grants can be complicated for not-for-profits, especially when they come with donor-imposed conditions. However, 2018 guidance from the Financial Accounting Standards Board (FASB) provided some much-needed clarification.
Protect your nonprofit from occupational fraud threats
Here's how nonprofits open the door to fraud - and how your organization can shut it.
What to do if your nonprofit receives an IRS audit letter
The IRS's staffing shortages have been well publicized and audits of individuals have decreased in the past several years. But it is a mistake to assume that the agency has stopped scrutinizing not-for-profits and conducting audits when it deems necessary.
Fiduciary duties: What your board members need to know
Not-for-profit board members have a fiduciary duty to the organization. Some states have laws governing the activities of nonprofit boards and other fiduciaries. But not all board members are aware of their responsibilities.
Protect your nonprofit by cross-training staff
What would happen if one of your managers was suddenly forced to take long-term disability leave? Or an accounting staffer quit without notice? It is possible that your not-for-profit's work could come to a standstill, unless you have cross-trained your employees.