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…
Tag: nonprofits
Lease Accounting Rules Are (Finally) Here
Implementing the FASB’s Accounting Standards Update The updated accounting standard for leases, released back in 2016, is finally taking effect this year for all organizations, including nonprofits, that haven’t already adopted it. You might be surprised at how many “leases” you have under the Financial Accounting Standards Board’s (FASB) Accounting Standards Update (ASU) 2016-02, Leases…
Uniform Guidance Compliance: Watch Out for 3 Danger Zones
Federal funding in response to the COVID-19 pandemic has meant that more nonprofits have found themselves subject to the Uniform Guidance for Federal Awards — the rules and requirements for obtaining federal grants. If they spent $750,000 or more in federal awards in a fiscal year, they’re also facing single audits, possibly for the first…
Updating Collective Impact Initiatives to Include Equity
Large-scale social change involving issues such as global warming, racial justice, economic development or education generally isn’t possible for individual nonprofits. An approach known as “collective impact” coordinates organizations across multiple sectors to tackle these larger issues. Here’s what you need to know before signing on to such an initiative. What is it? Collective impact…
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….
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…
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…
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…
Nonprofits: Be Wary of Restricted Gifts
Donor-imposed restrictions on gifts can handcuff a nonprofit, as many have learned during the COVID-19 pandemic. A new academic study of national arts and culture organizations, “Service Delivery Under Pressure: The Effect of Donor Imposed Financial Restrictions,” published in the journal Public Performance & Management Review in 2021, suggests how well-intended restrictions could backfire when…
Don’t Roll the Dice: Rules for Charitable Gaming Activities
Gaming can seem like an appealing and low-cost option for boosting nonprofit revenues. But bingo, poker tournaments, raffles and the like are subject to some strict tax rules and local laws where noncompliance could lead to penalties and even personal liability for board members. Here’s what you need to know: Unrelated business income Income from…