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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

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

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

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

FASB issues new rules for reporting gifts-in-kind

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