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…

GoFundMe Charity to Shut Down

GoFundMe Charity, the fundraising-dedicated website launched in November 2019, is now scheduled to shut down on September 30, 2021, when it will merge with GoFundMe.com. The last day to start a new fundraising campaign on the platform is June 30, 2021. Nonprofits have through December 31, 2021, to view and export their donor and fundraiser…

5 Ways to Keep Remote Workers Connected

With many nonprofit employees continuing to work at home, engagement and morale can suffer. But more than a year into the pandemic, some best practices have emerged for combating feelings of isolation and disconnection that undermine productivity. Here are five: 1. Stay in regular contact Perhaps the most important step you can take is to…

IRS clarifies royalty exception to UBIT

Provisions in the Tax Cuts and Jobs Act have brought renewed attention to nonprofits’ potential liability for unrelated business income tax (UBIT). Organizations generally are subject to a 21% tax on unrelated income, but exceptions apply — including one for royalties. Although “royalties” aren’t defined in the U.S tax code or regulations, a recent IRS…

IRS Rules: Restructuring in Today’s Regulatory Climate

Some nonprofits have been forced to restructure their organizations due to the economic challenges of the COVID-19 pandemic. Fortunately, IRS rule changes from a couple of years ago make the restructuring process far easier than it once was. If you’re considering such a change, here’s what you need to know. How have the rules changed?…

Working remotely: Don’t neglect internal controls

The pandemic has forced many nonprofits to change to work-at-home mode for extended periods, and some may remain there even as COVID-19 recedes. This shift in operations offers potential advantages, but it’s critical that organizations institute new, or adapt existing, internal controls to protect their finances and accounting-related data. Here are some of the most…