If your not-for-profit periodically prepares internal financial statements for your board, you may have noticed that your auditors propose adjustments to these interim statements at year end. Why do auditors do this? Generally, it reflects differences due to cash basis vs. accrual basis financial statements. But you can help minimize the need for such adjustments.
Non-Profit Archives - Page 3 of 7 - Crawford Ellenbogen
May 11, 2021
Minimize the need to make year-end financial adjustments
- By Joan Ellenbogen
- Non-Profit
- 0 Comments
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Mar 23, 2021
It may be time to tune up your nonprofit’s accounting function
- By Joan Ellenbogen
- Non-Profit
- 0 Comments
Many organizations get stuck in procedural ruts because it’s easier in the short term to continue doing things the way they’ve always been done. But it generally pays to regularly review your not-for-profit’s accounting function for inefficiencies and oversight gaps. You might plan to conduct a review once a year or perform an assessment whenever
Feb 11, 2021
New revenue idea? Watch out for the commerciality doctrine
- By Victor Dozzi
- Non-Profit
- 0 Comments
The commerciality doctrine was created to address concerns over not-for-profits competing at an unfair tax advantage with for-profit businesses. Even business activities related to your nonprofit’s exempt purpose could cause you to lose your tax-exempt status. Courts consider several factors, including whether you sell to the general public, set prices to maximize profits, use promotional
Feb 3, 2021
Don’t make decisions without data analytics
- By Victor Dozzi
- Non-Profit
- 0 Comments
Data analytics can help your organization validate trends, uncover root causes and improve transparency. For example, analysis of certain fundraising data makes it easier to target those individuals most likely to contribute to your nonprofit. Data analytics can also help develop useful insights, connections and patterns that lead to more informed decision making. Although some
Jan 14, 2021
Valuing noncash donations: A cheat sheet
- By Joan Ellenbogen
- Non-Profit
- 0 Comments
Many not-for-profits experience a flood of last-minute donations at the end of the year. Although cash is easy to value, valuing noncash property donations is trickier. If you’re struggling to assign amounts to contributions — either for a donor or your own records — review this cheat sheet. Price on the open market Most noncash
Jan 6, 2021
How to keep your nonprofit’s members in the fold
- By Victor Dozzi
- Non-Profit
- 0 Comments
During this time of economic and occupational insecurity, some charities and associations are experiencing membership non-renewals. How can you do a better job of retaining members and attracting new ones? First, make sure you know what members need (such as education and networking opportunities) by conducting surveys, focus groups and online polls. Also make sure
Dec 17, 2020
Nonprofit endowments require knowledge and resources
- By Victor Dozzi
- Non-Profit
- 0 Comments
An endowment can help preserve and grow your nonprofit over the long term, even when economic storms threaten to shut it down. But you need to make sure you understand the regulations governing endowment spending and have the resources to manage investments. The Uniform Prudent Management of Institutional Funds Act (UPMIFA) regulates how nonprofits can
Dec 10, 2020
Nonprofits: How to acknowledge donor gifts
- By Victor Dozzi
- Non-Profit
- 0 Comments
Holiday-inspired generosity and the desire to reduce tax liability makes the end of the year a busy time for charitable giving. According to Network for Good and other sources, approximately 30% of charitable gifts are made in December alone. For nonprofits, an important part of processing these donations is sending thank-you letters that acknowledge gifts.
Aug 18, 2020
Main Street Lending Program now open to nonprofit applicants
- By Victor Dozzi
- Non-Profit
- 0 Comments
Last week, the Federal Reserve announced that not-for-profit organizations now may apply for loans under the $600 billion Main Street Lending Program. Previously open only to for-profit businesses with more than 100 employees, the program offers low-interest loans with relatively relaxed repayment terms. If your organization needs funding to keep operating during this difficult period, a
Jul 16, 2020
Regaining your tax-exempt status if you failed to file Form 990s
- By Joan Ellenbogen
- Non-Profit
- 0 Comments
There are many ways for a not-for-profit organization to lose its tax-exempt status — including participating in lobbying and campaign activities, receiving excessive unrelated business income and allowing board members to financially benefit from their positions. But the most common reason nonprofits lose their status is failure to file an annual Form 990 or 990-N