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 →

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 →

Landing a corporate sponsorship is an accomplishment, especially in today’s economy. If you do get lucky, you’ll want to prevent unrelated business income tax (UBIT) from cutting into your new income. If you meet the requirements for a qualified sponsorship payment exception, you should be in good shape. Continue reading Prevent the UBIT trap of corporate sponsorships →

This issue’s “NEWSBYTES” reports on a recent Charity Navigator acquisition, registered voters’ views of nonprofits’ COVID response and a survey that examined Americans’ trust of nonprofits. Continue reading NEWSBYTES →