COVID-19 Changes the Landscape for Single-audit Compliance

COVID-19 and its economic impact have left the nonprofit niche financially vulnerable, with corporate and individual donations dropping precipitously for many organizations. Relief funding under the CARES Act has helped some nonprofits remain reasonably stable. But funding also will likely impose new single-audit requirements on recipients already struggling to keep their heads above water. The…

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Thank you.

Without a doubt, this past year has brought challenges which have left no one untouched, including my team here at Sechler Morgan as well as my friends and family. But despite all efforts to the contrary, the year 2020 has revealed what is good and noble in people. Each member of our team has watched…

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Survey: 3% to 38% of Nonprofits Could Close

Candid, a nonprofit information service, estimates that as many as 38% of organizations could be forced to close in the wake of COVID-19, vs. 4% in a typical year. The service looked at more than 300,000 U.S. nonprofits and considered 20 possible scenarios that fall into three categories. The 38% figure represents the direst scenario,…

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Deciding If It’s Time For a Merger

As many nonprofits struggle financially as a result of the COVID-19 crisis, some are considering merging with another organization to survive. Nonprofit mergers are nothing new, of course, but they’re not always a good idea. Read on to learn some of the factors you should weigh when evaluating merger opportunities. Wise reasons to merge Successful…

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Are you using relevant ratios in these uncertain times?

Financial statements play an important role in assessing your organization’s health. However, they aren’t necessarily the best way to communicate performance to stakeholders. Ratios, on the other hand, grab information from your financial statements and can be presented as easy-to-process snapshots, an effective tool in the COVID-19–related economic crisis. Ratios help board members and other…

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IRS issues proposed regs on UBTI “silo” rules

Ever since the Tax Cuts and Jobs Act (TCJA) changed the rules about unrelated business taxable income (UBTI), nonprofits have had questions about just how those rules apply. Now there are proposed IRS regulations that nonprofits with more than one unrelated trade or business can rely on until final regulations are published. The proposed regs…

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Majority of Nonprofits Worldwide Report Donation Decline

A survey conducted by CAF America, a global nonprofit grant-making organization, found that 73% of the 880 organizations in 122 countries queried have seen a decline in contributions due to the COVID-19 pandemic. Half of those surveyed from April 30 through May 6, 2020, indicated that they expect to see revenue decline by more than…

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Should You Buy or Lease Your Headquarters?

Current economic challenges are leading many nonprofits to take a close look at their expenses. The costs of your facilities may be overlooked during a cost-cutting process because they seem unavoidable. But the choice between renting and buying property to house your organization can have substantial cost implications. This makes it important to evaluate the…

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COVID-19 Forces a Focus on Operating Costs

Troubling revenue losses COVID-19 hit nonprofits hard, fast and right where it hurts — revenues. Organizations of all kinds saw funding dry up as major events were canceled and donors held back in fear for their own financial stability. Based on surveys conducted from March through May 2020, for example, the Massachusetts Nonprofit Network found…

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Board of Directors: Financial Literacy is Key

Your board is responsible for reviewing your nonprofit’s financial results so it can make sound decisions. But not every board member arrives at your organization with a financial background. Here are some suggestions for relaying some of the most vital information they need to know. Communicating the balance sheet A statement of financial position shows…

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