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…

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….

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…

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)…

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…