More information will be required from nonprofits that use Generally Accepted Accounting Principles (GAAP) and receive nonfinancial assistance — also known as gifts-in-kind — than in the past as the result of a new Financial Accounting Standards Board (FASB) rule. Accounting Standard Update (ASU) No. 2020-07, Not-for-Profit Entities (Topic 958): Presentation and Disclosures by Not-for-Profit Entities for Contributed Nonfinancial Assets, is intended to expand the transparency around such gifts, including how they’re used and valued. Continue reading FASB issues new rules for reporting gifts-in-kind
All posts by Mike Sperling
Budgeting in the shadow of COVID-19
Budgeting is always, to some degree, an exercise in uncertainty. But the current budgeting environment is unlike any experienced before. As a result of the COVID-19 crisis, many nonprofits have seen deep declines in revenue while the demand for their services has spiked. These and other pandemic-related factors may call for organizations to take a different approach to budgeting. This article discusses rolling budgets and reforecasting. A sidebar reflects on how nonprofits should budget for COVID-19-related expenses, such as sanitation-related services and employee assistance. Continue reading Budgeting in the shadow of COVID-19
Newsbytes
Struggle ensues to recruit young diverse boards
Although 95% of nonprofits are actively recruiting to diversify their governing boards, 87% have struggled to find the right recruitment channels to do so. And more than half (51%) don’t think their boards reflect the communities they serve. Continue reading Newsbytes
Pandemic, civil unrest spotlight potential of mutual aid
The COVID-19 pandemic and the response to racial justice issues have brought greater attention to mutual aid. Although the concept is nothing new, its emergence in recent times highlights the possibility that nonprofits can partner on mutual aid projects to enhance their mission- and cost-effectiveness when resources are tight. With the need for services so high, it’s worth exploring. Continue reading Pandemic, civil unrest spotlight potential of mutual aid
Donor-advised funds
How they work and how to land them
Donor-advised funds (DAFs) have shown consistent growth over the last nine years, according to the 2019 Donor-Advised Fund Report from the National Philanthropic Trust (NPT). NPT data from nearly 1,000 charities shows that DAFs grew in all key areas, including in the number of individual funds and total grant dollars awarded to charitable organizations. Data for the NPT’s 2020 report is currently being collected. Continue reading Donor-advised funds
Capacity building: Focus on your strengths, not your weaknesses
The COVID-19 pandemic, waves of civil unrest and rocky economic times have led to a tsunami of external and internal forces for which many nonprofits have found themselves unprepared. Organizations are struggling to continue serving their constituencies while keeping their employees safe and doors open to the extent permitted, all under the shadow of questions about funding. Continue reading Capacity building: Focus on your strengths, not your weaknesses
Newsbytes
Restaurant thrives by teaming up with nonprofit
An organization’s ability to turn on a dime and creatively adapt to changes in circumstances is critical these days. A New Jersey nonprofit called Be Awesome to Somebody demonstrated this during the COVID-19 pandemic.
Continue reading Newsbytes
Influencer marketing comes to nonprofits
As the COVID-19 crisis intensified earlier this year, pop singer Ariana Grande began taking to Twitter every week to share a list of organizations she was supporting to help provide relief to those hit hard. As a result, organizations such as The Bail Project, Fund for Families and The Mental Health Fund saw a significant jump in contributions and new donors.
Continue reading Influencer marketing comes to nonprofits
Classifying workers as employees or independent contractors
When bringing back workers, follow the rules
Part of your nonprofit’s entrance into the “new normal” nonprofit world may involve rehiring workers — and perhaps hiring some new replacements. For tax obligation purposes, you’ll be required to classify those workers as employees or independent contractors (ICs).
Continue reading Classifying workers as employees or independent contractors
5 planning strategies in uncertain times
The COVID-19 pandemic, waves of civil unrest and rocky economic times have led to a tsunami of external and internal forces for which many nonprofits have found themselves unprepared. Organizations are struggling to continue serving their constituencies while keeping their employees safe and doors open to the extent permitted, all under the shadow of questions about funding. Continue reading 5 planning strategies in uncertain times