This issue’s Newsbytes summarizes a study that finds nonprofit employment has returned to pre-Covid-19 levels, highlights a report finding professional fundraisers plan to leave their current employers within two years, and looks at a free comprehensive tool nonprofits can use to analyze their technology practices and procedures.
All posts by Mike Sperling
What’s the magic number? — Some guidelines for determining your board’s size
Recruiting and retaining committed board members is a never-ending process. For many nonprofits, determining an appropriate-sized board takes time. Although state law typically sets the minimum number of directors a nonprofit must have on its board, it’s up to each organization to determine how many board members it needs. Both small and large boards come with perks and drawbacks — and once the board size meets its state requirement, the article reviews what nonprofits should consider.
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Be prepared for IRS audits of COVID-19 ERC claims
The availability of Employee Retention Credits (ERCs) during the height of the COVID-19 pandemic — particularly the ability to claim advance payments of the credits — played a critical role in keeping many nonprofits afloat. Now, however, the IRS has begun to subject some employers that claimed ERCs to audits. Given the extended five-year statute of limitations for such audits, nonprofits that claimed the credits need to prepare. This article highlights what nonprofits should do to prepare for a possible ERC audit.
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How an energy-efficient building tax deduction could pay off for nonprofits
Much of the Inflation Reduction Act signed into law in late 2022 contains provisions intended to combat climate change, largely through tax incentives. Such tax breaks aren’t usually relevant to the work of nonprofits. But for organizations constructing new facilities or adding improvements, the Act’s changes to one tax deduction could benefit them. This article reviews the benefits available under the Act. In addition, a short sidebar covers how the Act allows eligible organizations to receive certain tax credits — which otherwise would be of little use to nonprofits that pay no income tax — as direct payments from the IRS.
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NEWSBYTES
In this issue’s Newsbytes we look at the latest increase in the value of the volunteer hour, which auction items attract the most bids, and a study that finds that the best nonprofits score high on fun and diversity.
Are term limits right for your board?
While term limits for nonprofit boards of directors aren’t legally mandated, many organizations consider term limits to be a best practice. Term limits aren’t right for every organization, though. This article highlights what pros, cons and practical steps involved before adopting them.
Tax compliance — Understanding tax issues with auctions
Auctions can be an effective way to raise funds for nonprofit organizations. But preparing for an auction involves more than fun and games. This article provides some suggestions that can help ensure nonprofits don’t run afoul of tax requirements.
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It’s time to vote — Watch out for IRS limits on nonprofit political activities
The mid-term elections are near, and jockeying for 2024 elections isn’t far behind. That makes this a good time to review the IRS rules regarding Section 501(c)(3) organizations and political activities. This article reviews the rule and how noncompliance can lead to costly excise taxes and jeopardize a nonprofit organization’s tax-exempt status. A short sidebar discusses the concerns for nonprofits that primarily advocate on certain issues.
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NEWSBYTES
Study finds positive signs for the future of nonprofits
The past two years have been challenging for nonprofits, but the “2022 Nonprofit Technology Trends Report,” sponsored by Sage Intacct (a provider of cloud financial management), found encouraging signs for the future. For example, more than twice as many of the more than 900 nonprofit leaders surveyed (44%) saw more of a revenue increase in 2021 than in 2020 (21%). Of those organizations with higher revenues, 34% enjoyed increases of more than 25%. And giving was higher across all types of funders — individuals, corporations and governments.
Data analytics — Using technology to meet your nonprofit’s goals
In today’s technologically advanced world, data rules. But simply having highly relevant information will be of little use if organizations don’t know what to do with it. This article discusses how organizations can harness the power of data by using it in day-to-day decision making and strategic planning, as well as providing stakeholders, donors and volunteers with up-to-date information about fundraising, programming and outreach.
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