nonprofit

Why Your Nonprofit Shouldn’t Operate Like a For-Profit Business

Charlotte thought she knew everything about running a not-for-profit community hospital. So the CEO was shocked when the IRS contacted her hospital about potentially losing its tax-exempt status. The IRS mentioned…

When Do 501(C)(6) Organizations Risk Their Exempt Status?

Even when they’re nonprofits, trade associations and chambers of commerce generally qualify for a tax exemption under Section 501(c)(6) of the Internal Revenue Code, not Sec. 501(c)(3). And these “business leagues” (as…

Best Practices for Effective Board Meeting Minutes

If you think the recorded minutes of your nonprofit’s board meetings are just a formality, think again. Meeting minutes can become critical documents if, for example, your organization is audited…

How to Get the Financing Your Nonprofit Needs

Relatively high interest rates and tight lending standards are making it difficult for even for-profit businesses to apply and qualify for bank loans. But not-for-profits, which may lack adequate collateral…

Help Donors Help Your Nonprofit with a Planned Gift

Most established not-for-profits are already equipped to solicit and accept planned gifts. But if your nonprofit is new to planned giving and doesn’t yet understand the long-term advantages of deferred gifts,…

Why Your Nonprofit’s Board Needs to Be Diverse

Ideally, a nonprofit’s board of directors should mirror that of its community and clientele. Does yours? Identifying that your board needs more diversity is the easy part, though. Figuring out…

Want to Boost Income? Consider a For-Profit Subsidiary

Just because you run a not-for-profit organization doesn’t mean you can function on low or no income. Although your nonprofit’s tax-exempt status prohibits certain money-making activities, you may be able…

Don’t Let IRS Compliance Issues Drag Down Your Nonprofit

In recent years, the IRS has increased its scrutiny of tax-exempt organizations. Most nonprofits that fail to file Form 990 for three consecutive years will have their exempt status revoked…

Joining Forces With Another Nonprofit

A merger may seem like something that happens in the for-profit world, where companies often combine to expand sales territory, gain competitive advantages and boost profits. But, in fact, mergers…

Do you have to return a donation when a donor requests it?

If a donor has never asked your not-for-profit to return a gift, it may only be a matter of time. Although uncommon, donors can change their minds. They may come…

News for Nonprofits: Fall 2023

Do you know the value of your volunteers? The value of a volunteer hour is now estimated to be $31.80 — a 6.2% increase compared to 2021. This figure was…

How to increase your nonprofit board’s financial literacy

Make balance sheets and income statements understandable. A nonprofit organization’s board of directors might include accountants, bankers or investment managers. It also might include business or community leaders with expertise…

SECURE 2.0: What it means for 403(b) plans

In late 2022, President Biden signed into law the Setting Every Community Up for Retirement Enhancement (SECURE) 2.0 Act. Following 2019’s bipartisan SECURE Act, the latest legislation is intended to…

5 reasons you should have your financial statements audited

Many nonprofit organizations are under no legal obligation to have annual, or even regular, financial statement audits. But your organization might want to consider going through the process anyway. It…

Trust and internal controls can coexist in your nonprofit

Within a period of just a month, a Minnesota woman was charged with skimming more than $300,000 from her animal rescue charity, a Florida man was charged with multiple felonies for…