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Stop Employee Credit Card Abuse Before It Starts

A nonprofit staffer charged legitimate travel-related expenses to her employer’s credit card. Although she intended to file an expense report, her employer never asked for it — nor did the employer question her when it received the card statement. The employee was recently divorced and under unusual financial pressure, so when she couldn’t pay for…

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Have Faith… But Take Precautions

Financial best practices for religious congregations Because they aren’t required to file tax returns, many churches, synagogues, mosques and other religious congregations don’t hire independent accountants to perform regular audits. But regardless of size, religious organizations often are subject to other requirements, such as reporting unrelated business income tax (UBIT) and properly classifying employees. Without…

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Tax Cuts and Jobs Act: Planning Can Help Your Nonprofit Minimize Negative Effects

Months after the Tax Cuts and Jobs Act (TCJA) was signed into law, nonprofits are still trying to assess its consequences. Some of the early proposals that raised alarms in the charitable sector — such as a repeal of the Johnson amendment — didn’t make it into the final version of the law. But there’s…

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tax reform

What Nonprofits Need to Know About the New Tax Law

The number of taxpayers who itemize deductions on their federal tax return — and, thus, are eligible to deduct charitable contributions — is estimated by the Tax Policy Center to drop from 37% in 2017 to 16% in 2018. That’s because the recently passed Tax Cuts and Jobs Act (TCJA) substantially raises the standard deduction.…

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Don’t Let Unemployment Insurance Fleece Your Nonprofit

Unemployment insurance laws vary by state, but one commonality is that states collect billions of dollars from employers in overpaid unemployment tax. Is your nonprofit overpaying? Here’s how to find out and possibly reduce unemployment costs.

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To Preserve Their Tax Status, Associations Must Observe Limits

Nonprofit trade associations, or 501(c)(6) organizations, exist to promote their members’ common interests and improve business conditions or “one or more lines of interest.” Whether the association is a local chamber of commerce, a real estate board or a large professional group such as the American Bar Association or American Medical Association, associations’ tax-exempt status…

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Accounting Matters

Keep the heart of your nonprofit beating Your accounting department is the heart of your nonprofit. Although departments such as programming or fundraising may seem to have more obvious relationships with your nonprofit’s mission, your accounting function ensures that the whole organization runs well — and remains healthy over the long term.

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Making Sure Your Board Reflects Your Constituency

When nonprofits first form, they usually welcome as board members anyone who has the time and interest. But as organizations grow in size, revenue and complexity, the makeup of their boards generally must change. For example, they may want members with legal or financial expertise or to include major donors and business leaders.

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Using Planned Gifts to Help Secure Your Nonprofit’s Future

Planned (also known as deferred) gifts come as close to a sure thing as your nonprofit will ever likely encounter. They’re often more substantial than other types of donations and, because they specify an amount and date (or event, such as the death of the donor), they can help you secure your organization’s future with…

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Make a Licensing Agreement Work for Your Organization

Licensing your nonprofit’s name to a for-profit company can provide a valuable new revenue source — but it can also be risky. If you’re considering a licensing arrangement, ensure that the partnership really will generate funds and, possibly more important, a positive impression of your brand.

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