Nonprofit operating reserves refers to revenue that can be set aside for future use. Planning for this ensures long-term financial heath. Where does this money come from and how can nonprofits plan for the future? Establishing nonprofit cash reserves Nonprofit operating reserves are unrestricted cash set aside for unexpected financial emergencies. Like any business…

Is your nonprofit tax exempt? Being a nonprofit organization doesn’t mean you are exempt from paying taxes. This post explores the criteria for tax exemption. Nonprofit Tax Exempt Classifications There are many different classifications of nonprofit organizations, business and trade associations, labor organizations, private foundations and public charities. All of these nonprofits must fulfill…

Hiring a nonprofit accountant is critical to a nonprofit’s success in fulfilling its mission. Selecting an accountant with the proper skills and understanding can be a daunting task. Before you hire your next nonprofit accountant, be sure they have the knowledge to ensure compliance and accountability. Nonprofit Accountant Responsibilities One major mistake nonprofit…

Nonprofit Form 990 red flags impact donor trust and reveal lack of due diligence. The 990 is a snapshot of how well an organization has complied with government regulations and what activities it has carried out to ensure it is upholding its mission. Who Files Form 990? Every nonprofit organization must file an annual…

Nonprofit restricted assets have changed extensively since 2016. In order to avoid unintentionally misappropriating funds, it important to understand the practical management of restricted funding. Nonprofit Restricted Assets: Backstory Beginning in 2016, the Financial Accounting Standards Board (FASB) made several changes to not-for-profit (NFP) reporting criteria, including changes to the reporting of assets with…

Since not-for-profit organizations operate differently than for-profit corporations, they must following specific nonprofit accounting practices to remain compliant. Nonprofit Accounting Practices Although a nonprofit may have been founded out of a passion to carry out its mission, the nonprofit is not owned by anyone. Rather, it is a public trust directed by a…

Fundraising can be a stressful process, and the idea of setting nonprofit fundraising goals for yourself may be intimidating. Charitable giving backs the majority of your nonprofits’s programs and initiatives. Therefore, it’s likely one of the top priorities for your organization. So, if you are going to raise money, you…

COVID-19 has made a significant impact on individuals and organizations around the world. Everyone is working hard to keep their distance from others and amping up healthy practices to slow the spread of the virus. On top of the humanitarian crisis brought about by the pandemic, we’re also experiencing significant…

Every year modern fundraisers are scrambling to top their previous campaigns and fundraising efforts. However, time and time again it’s clear that the better you know your donors and manage your donor data, the better you can develop fundraising strategies and make a genuine impact on your cause. …