Nonprofits

News for Nonprofits: Winter 2023

Community foundations pull back on funding A new survey of 98 community foundations representing about $38 billion in assets reveals a worrisome trend for nonprofits that rely on foundation funding. The FEG 2022 Community Foundation Survey from Cincinnati-based Fund Evaluation Group (FEG) Investment Advisors indicates that only 6% of community foundations expect to change their…

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Is a CFO the Right Choice for Your Nonprofit?

As nonprofits grow, some may struggle with the financial side. Let’s face it, nonprofits generally begin with a vision or passion, and not with financial know-how. For some organizations, a chief financial officer (CFO) may be a good choice. What does a CFO do? Generally, the nonprofit CFO (also known as the director of finance)…

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Inflation and Rising Interest Rates: What Nonprofits Can Expect

The inflation rate hit highs in 2022 not seen since the early 1980s, and the federal funds interest rate has continued to climb steadily, after historically low rates during the height of the pandemic. Few nonprofit leaders have dealt with such economic conditions before. Read on to gain some insights on the landscape ahead and…

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Cybersecurity 101: Train Your Staff to Combat Hackers

When it comes to cyberthreats, your employees are on the front line, but many of them are unprepared. They may not be aware of the risks and red flags, and they may not know how to respond when cybercriminals strike. With the average total cost of a data breach at $4.35 million, and nonprofits far…

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News for Nonprofits: Fall 2022

Fundraisers seek protection with “bill of rights” The Association of Fundraising Professionals (AFP), which previously developed a “Donor Bill of Rights,” is now looking inward to protect their members’ own “physical, mental and emotional wellbeing” on the job. A recent AFP survey found that nearly a quarter of fundraisers have experienced sexual coercion, meaning pressure…

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Do You Understand the Public Support Test?

Nonprofits that aren’t careful can stray over the line that distinguishes between public charities and private foundations. This can expose nonprofits to lower tax-deductible donation limits as well as potential excise taxes and penalties. Certain organizations, including universities and churches, automatically qualify as public charities, but others must pass a public support test. Role of…

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Ways to Improve Your Organization’s Accounting Function

Although nonprofits may be exempt from income tax, they still have financial and accounting requirements. This includes projecting budgets and monitoring the results, preparing financial statements and collecting payroll taxes. Accounting processes can become inefficient over time if you don’t monitor them. Here are some suggestions of procedures your organization should review regularly. Invoicing and…

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Lease Accounting Rules Are (Finally) Here: Implementing the FASB’s Accounting Standards Update

The updated accounting standard for leases, released back in 2016, is finally taking effect this year for all organizations, including nonprofits, that haven’t already adopted it. You might be surprised at how many “leases” you have under the Financial Accounting Standards Board’s (FASB) Accounting Standards Update (ASU) 2016-02, Leases (Topic 842) — whether for real…

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News for Nonprofits: Summer 2022

How federal legislation may affect DAF distribution timelines A bipartisan group of legislators has introduced the Accelerating Charitable Efforts (ACE) Act in the U.S. House of Representatives. The ACE Act mirrors a bill introduced in the Senate in June 2021. It would create two new types of donor-advised funds (DAFs) — 15-year (or qualified) and…

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Have a Little Faith: IRS and Fraud Concerns for Faith-Based Nonprofits

Religious congregations must comply with IRS rules and federal and state laws. But because they don’t have to file income tax returns, some fail to engage independent financial experts. Without that oversight, congregation leaders may not know all the requirements to which they’re subject and internal controls could be lacking. This leaves them vulnerable to…

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