The ongoing pandemic has strained many nonprofits, forcing them to cut corners to survive. But fraud prevention is one critical area you can’t afford to overlook, even just for the short term. If anything, antifraud measures are more important than ever.
Continue reading Association of Certified Fraud Examiners report — Don’t let fraud prevention slide
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4 best practices for successful virtual events
Virtual events were supposed to be a short-term replacement for traditional fundraisers. But, almost two years after the first COVID-19 lockdowns, plenty of nonprofits still rely on them. The good news is that some overall best practices have emerged from the pandemic. Here are some ways your nonprofit can make the most of your next virtual event.
Continue reading 4 best practices for successful virtual events
See you at the office? — Reassessing your nonprofit’s office space
Where your nonprofit is located and how you use the space you have can mean the difference between striding or just limping along. That fact was highlighted for many nonprofit leaders during the COVID-19 pandemic, when lease or mortgage payments became a financial strain, and dust accumulated on the desks of employees working remotely.
Continue reading See you at the office? — Reassessing your nonprofit’s office space
NEWSBYTES
The most recently released Internal Revenue Service Data Book, which covers the federal fiscal year running from October 1, 2019, through September 30, 2020, shows that the United States has about 1.8 million 501(c) organizations. That includes 1.4 million religious, charitable and similar organizations, 79,050 social welfare organizations, and about 62,000 business leagues.
Are you ready for the new lease accounting rules?
Employers of all stripes, both nonprofit and for-profit, often overlook a federal tax break available to organizations that hire new employees from certain groups who have traditionally faced obstacles to hiring. While the Work Opportunity Tax Credit (WOTC) is more limited for nonprofits, it nonetheless presents payroll tax-saving opportunities that can prove especially valuable for organizations that are ramping up hiring. This article reveals how the WOTC can be a win-win for nonprofits and veterans.
Continue reading Are you ready for the new lease accounting rules?
Look before you leap — Factors to consider before accepting a grant
Most nonprofits look to government and/or foundation grants to help finance goals. These grants are fundamental in expanding an organization’s reach. But organizations may find it difficult to quantify all the costs and benefits associated with a potential grant. Nonprofits that don’t do their research before accepting money could face problems down the road. This article summarizes the risks of blindly accepting grants, how administrative burdens can undermine a grant’s face value, and the possibility that expenses aren’t allowable or reimbursable under a grant.
Continue reading Look before you leap — Factors to consider before accepting a grant
Work Opportunity Tax Credit — Hiring veterans may lower your payroll taxes
Employers of all stripes, both nonprofit and for-profit, often overlook a federal tax break available to organizations that hire new employees from certain groups who have traditionally faced obstacles to hiring. While the Work Opportunity Tax Credit (WOTC) is more limited for nonprofits, it nonetheless presents payroll tax-saving opportunities that can prove especially valuable for organizations that are ramping up hiring. This article reveals how the WOTC can be a win-win for nonprofits and veterans.
Continue reading Work Opportunity Tax Credit — Hiring veterans may lower your payroll taxes
NEWSBYTES
This issue’s Newsbytes covers how the use of automatic enrollment has pushed participation in 403(b) retirement plans to the highest level since 2008; the growth of impact investing to help achieve various societal benefits; and how the Great Recession of 2008 affected nonprofit giving.
Ways to diversify your revenue streams
Many nonprofits learned the importance of revenue diversification the hard way over the past two years. Unexpected reductions, or even elimination, of certain revenue streams had them scrambling to meet increased demand — or simply to stay afloat. This article examines how nonprofits can achieve the greater financial stability that typically comes through diversification of revenue streams. A short sidebar covers a few potential downsides of revenue diversification that each organization must assess to determine whether the benefits outweigh the costs.
New accounting rule could bring change to nonprofits’ financial statements
A new accounting standard from the Financial Accounting Standards Board (FASB) appears on its face to apply only to financial institutions. But it could affect nonprofits that adhere to Generally Accepted Accounting Principles (GAAP). This article highlights Accounting Standards Update (ASU) No. 2016-13, Financial Instruments — Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments. This ASU requires earlier reporting of credit losses on receivables, loans and other financial assets, and expands the range of information considered in determining expected credit losses.
Continue reading New accounting rule could bring change to nonprofits’ financial statements