Like many other employers suffering through the so-called Great Resignation, some nonprofits are struggling to fill — and keep filled — all of their positions. Automating processes with software could provide relief for organizations of every size. Case for automation Nonprofits understandably might fear that automation will remove the human touch valued by everyone from…
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4 Steps to Better Grant Management
Grants have long been the lifeblood of many nonprofits, and more organizations are wading into grant waters amidst continuing economic uncertainty. Establishing or revamping your grant management process doesn’t happen overnight, but the long-term payoffs (and potential payouts) make the investment well worth it. Here are some steps for improving your grant management. 1. Take…
Don’t Let Corporate Sponsorships Trip You Up
With some financial experts predicting that a recession looms on the horizon, corporate sponsorship dollars can be appealing. However, nonprofit organizations need to take care when crafting such arrangements — or possibly face an unexpected tax bill. What are qualified sponsorship payments? Under the Internal Revenue Code, qualified sponsorship payments aren’t subject to unrelated business…
Who Are Disqualified Persons? Understanding Self-dealing Rules
The IRS strictly prohibits self-dealing between private foundations and so-called “disqualified persons.” Potential penalties for the disqualified person and foundation staff are stiff. Here’s what you need to know to avoid liability. Stiff penalties The Internal Revenue Code imposes a minimum 10% excise tax on disqualified persons on the amount involved in a self-dealing transaction….
Critical Tax Reminders for Nonprofit Special Events
After the pandemic-induced lull, many nonprofits are making up for lost time and fundraising opportunities by ramping up their special events. It’s easy to get caught up in the details that come with event planning, but it’s also important to remember that these functions can have tax implications. Here are some things to keep in…
Cybersecurity 101: Train Your Staff to Combat Hackers
When it comes to cyberthreats, your employees are on the front line, but many of them are unprepared. They may not be aware of the risks and red flags, and they may not know how to respond when cybercriminals strike. With the average total cost of a data breach at $4.35 million, and nonprofits far…
Is a CFO the right choice for your nonprofit?
As nonprofits grow, some may struggle with the financial side. Let’s face it, nonprofits generally begin with a vision or passion, and not with financial know-how. For some organizations, a chief financial officer (CFO) may be a good choice. What does a CFO do? Generally, the nonprofit CFO (also known as the director of finance)…
Inflation and Rising Interest Rates: What to Expect
The inflation rate hit highs in 2022 not seen since the early 1980s, and the federal funds interest rate has continued to climb steadily, after historically low rates during the height of the pandemic. Few nonprofit leaders have dealt with such economic conditions before. Read on to gain some insights on the landscape ahead and…
Seniors Can Reduce Their Tax Burden by Donating to Charity Through Their IRA
Shared from IRS.gov In most cases, distributions from a traditional Individual Retirement Account (IRA) are taxable in the year the account owner receives them but there are some exceptions. A qualified charitable distribution (QCD) is one of the few exceptions. A QCD is a nontaxable distribution made directly by the trustee of an IRA to organizations…
Fundraisers Seek Protection with “Bill of Rights”
The Association of Fundraising Professionals (AFP), which previously developed a “Donor Bill of Rights,” is now looking inward to protect their members’ own “physical, mental and emotional wellbeing” on the job. A recent AFP survey found that nearly a quarter of fundraisers have experienced sexual coercion, meaning pressure from an employer to make themselves vulnerable…