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…

Employee Retention Credit: Get the Credit You Deserve

In response to the financial impact of the COVID-19 pandemic, the CARES Act established the employee retention credit (ERC) to encourage employers — including nonprofits — to keep employees on the payroll. The credit has been expanded and increased for 2021, but it’s also not too late for eligible employers to amend their 2020 employment…

The Value of Volunteers: Benefits of an Effective Program

Nonprofit organizations generally operate on lean budgets. This means volunteers are a necessity for most nonprofits. Knowing their worth and having an effective and organized volunteer program will help your cause — and your bottom line. How much are they worth? Nonprofit advocacy group Independent Sector has estimated the value of the average American volunteer…

3 Tips for Managing Social Media Reputational Risks

Many nonprofits are counting on social media more than ever to boost fundraising and build awareness. These tools have proven increasingly effective in recent years, but you need to keep in mind the very real risks to reputation that come with social media. Employees, board members, volunteers and even unaffiliated third parties can cause significant…

COVID-19 Renews Focus on Fundraising Efficiency

COVID-19 has hit many nonprofits with a double whammy — fundraising has become more important due to a drop-off in revenues, yet the need to cut expenses makes it harder to fundraise. Nonprofits can’t afford to waste a single dollar on ineffective methods. But focusing solely on cost when evaluating different approaches generally isn’t the…