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…

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…

Virtual B-I-N-G…NO

Why Arizona nonprofits should avoid certain gambling-related fundraisers As we are in our six month of dealing with the COVID-19 pandemic, many nonprofits are looking for creative ways to raise money. While they are looking at new fundraising avenues, they may be tempted to try approaches they have not used in the past. In addition,…

Deferral of Payroll Taxes – New Executive Order

On August 8, 2020 President Trump signed four Executive Orders (EO) designed to provide additional relief to those impacted by the COVID-19 pandemic. The orders addressed enhanced unemployment payments, student loan relief, moratoriums on evictions, and a deferral of payroll taxes; it is the last order that I will be addressing in this post. Payroll…

When It Comes to Embezzlement, Your Response Matters

A quick Google search for the phrase “nonprofit embezzlement” turns up thousands of news stories about thefts, ranging from relatively small amounts to millions of dollars. Regardless of the size of the misappropriation, the way a victimized organization responds can make or break its reputation, fundraising results and, in turn, ability to pursue its mission….

Staffing During COVID: How to Operate Effectively During a Pandemic

Repost from Nicole, Rizkallah, Philanthropy Daily Covering all of your bases and maintaining an effective staff is crucial right now. Here are some tips to keep your staff functioning well during the pandemic. The greatest threat to an understaffed nonprofit is not missing out on the opportunity to grow programs or deepen donor relations. It…

Corporate Sponsorships: Tax-free Gift or Taxable Income?

Done right, corporate sponsorships can pay off for both the nonprofits that receive funding and the sponsors that receive valuable branding opportunities. Done wrong, though, your organization could end up on the hook for unrelated business income tax (UBIT). You need to understand how to navigate the nuances before you wade in. Identify qualified sponsorship…

Program Service or Supporting Activity? Get Your Expense Allocation Right

The push for more transparency from nonprofits has placed a greater emphasis on how an organization’s expenses break down — in other words, how it uses its resources. In 2016, the Financial Accounting Standards Board (FASB) released a new rule that reflects this priority. While the rule has been in effect for almost two years,…

IRS Issues Guidance for Excise Tax on Executive Compensation

The passage of the Tax Cuts and Jobs Act (TCJA) in late 2017 brought several unwelcome developments for nonprofits, including a new excise tax on certain executive compensation. To answer the many questions about the tax, the IRS has issued interim guidance that is largely unfavorable for organizations with highly paid executives or so-called “excess…