Nonprofits

5 Critical Issues for Your Nonprofit’s Finance Committee

The role of a nonprofit’s finance committee is probably more important now than at any time since the 2008 financial crisis and ensuing Great Recession. Here are some of the areas your committee should focus on almost two years into the COVID-19 pandemic. 1. Cash flow Financial reserves have taken a hit across all types…

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Rules for Charitable Gaming Activities

Don’t roll the dice 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…

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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…

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News for Nonprofits Fall 2021

Candid shares key nonprofit data for 2021 Candid, the information services organization formed by the merger of GuideStar and Foundation Center, has released its annual snapshot of the nonprofit sector. Among other things, Key Facts on U.S. Nonprofits and Foundations, 2021 reports that individuals still provide the majority (69%) of giving. Community and private foundation…

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nonprofit news

News for Nonprofits Summer 2021

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…

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remote worker

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 for remote workers. Here are five. 1. Stay in regular contact Perhaps the most important step you can…

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operating reserves

Time to Replenish: Are Your Operating Reserves at a Good Level?

Operating reserves — generally, unrestricted assets you can easily tap — are often called “rainy day funds.” But stable reserves are critical for far more pressing reasons than the metaphorical rainy day. Many nonprofits, for example, have drawn on their operating reserves since the spring of 2020 to cope with the economic backlash of the…

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board members

Building Blocks for Effective Board Membership

The pandemic and ensuing economic downturn have put many nonprofits on shaky ground. In crises such as these, solid board leadership is more essential than ever — critical decisions affecting an organization’s long-term survival must be made. As your board members attempt to stabilize the organization and build for a successful future, they should bear…

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news for nonprofits

News for Nonprofits: COVID-19 Relief Benefits Donors

The COVID-19 relief legislation signed into law in December 2020 includes some provisions that could be a boost to donors and the nonprofits they support. For example, it extends the temporary “universal charitable deduction” for taxpayers who don’t itemize their deductions through 2021. The deduction was limited to $300 for cash contributions to qualified charities…

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IRS clarifies royalty exception to UBIT

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 a “royalty” isn’t defined in the U.S tax code or regulations, a recent…

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