Ready for the New Gifts-in-Kind Reporting Requirements?

The Financial Accounting Standards Board (FASB) has new rules for how nonprofits that follow Generally Accepted Accounting Principles (GAAP) must report and value “non-financial assistance” — commonly known as gifts in kind. The changes are effective for annual periods beginning after June 15, 2021, and interim periods within annual periods beginning after June 15, 2022….

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Giving Circles Surge in Popularity: What it Means for Nonprofits

According to the Dorothy A. Johnson Center for Philanthropy, giving circles have tripled in number since 2007, to about 1,600 groups with more than 46,000 members in the United States. With almost $1.3 billion in grants already made by giving circles, your nonprofit should ensure it’s on the circles’ radar. Small groups, big impact Giving…

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Do your employees qualify for loan forgiveness?

The U.S. Department of Education (DOE) is revamping the Public Service Loan Forgiveness (PSLF) Program, which cancels loans after 10 years of public service by eligible borrowers. Among other things, the DOE is providing a temporary opportunity (through October 31, 2022) for borrowers to get credit for payments they’ve made that wouldn’t otherwise count toward…

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Changes are Coming to Your Auditor’s Report

The American Institute of Certified Public Accountants (AICPA) Auditing Standards Board’s latest standards are kicking in, and many nonprofits will notice resulting changes to the format and content of auditor reports on their organizations’ financial statements. The updates are intended to make auditor reports more meaningful and transparent for the users of financial statements, including…

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How to Protect Your Nonprofit from Cyberattacks

The COVID-19 pandemic has resulted in numerous risks for nonprofit organizations. In addition to health-related risks and financial challenges, the pandemic has intensified the threat of cyberattacks. Hackers have grown more sophisticated in recent years. They often target nonprofits because charities hold confidential donor data but may fail to safeguard such data. And the cost…

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4 Tips for Rebuilding Your Operating Reserves

The COVID-19 pandemic has driven home many lessons for nonprofits, perhaps none so much as the importance of operating reserves. If your nonprofit is among those organizations with dramatically depleted — or nonexistent — reserves, here are some steps you can take to remedy the situation. 1. Achieve buy-in. It sometimes can be difficult to…

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How a New PayPal App Expands Fundraising Options

PayPal is giving its customers new avenues for supporting the causes they care about. The company’s recently launched app adds new features to its Generosity Network. PayPal introduced the network in 2020 to offer customers a way to create customized fundraising campaigns for themselves or other individuals or small businesses in need. The new app…

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Is it time to review your spending policy?

Well-managed investments play a critical role in the sustainability of many organizations, including nonprofits. A key element is your nonprofit’s spending policy, essentially the formula used to determine how much of the value of your investments will be tapped each year for such expenses as operating costs and capital projects. It’s generally advisable to stick…

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Key Performance Indicators: Using Financial and Non-financial Metrics to Flourish

As we near the two-year mark of the first COVID-19 lockdowns and stay-at-home orders, some nonprofits still are struggling with financial sustainability. This can mean that your board of directors is taking a greater interest in your organization’s financial performance. Key performance indicators (KPIs) can help focus your board’s attention on important metrics. Identify KPIs…

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