Most not-for-profit leaders understand a principal truth of their tax-exempt status: The IRS generally considers any revenue they take in that’s not related to their mission to be unrelated business income (UBI), and that income is subject to tax. Not-for-profits that don’t pay tax on that income face the possibility of back taxes, penalties and interest — and, in extreme cases, the loss of their tax-exempt status.
When it comes to fraud in any organization, credit cards are frequently a fraudster’s tool. Because the use of credit cards is so commonplace today, there’s always the risk of improper charges to your account. Credit card misuse could hurt your organization financially and jeopardize its reputation in the community.
Occupational fraud is an unfortunate reality for just about every employer, nonprofit organization or otherwise. But you might be able to reduce the risk of costly losses if you understand some of the common traits of fraud perpetrators. The 2016 Report to the Nations on Occupational Fraud and Abuse from the Association of Certified Fraud Examiners ("ACFE") provides some useful insights on these characteristics.
Is your next board chair prepared to lead?
Only half of board chairpersons are prepared for their leadership role when they take on the post, according to a recent survey by the Alliance for Nonprofit Management.
Follow the rules and this fundraising tool could be a winner
Raffles have long been a popular fundraiser for nonprofits. They’re easy to produce, affordable for participants and reliable revenue generators.
Many non-profits dream of landing hefty corporate sponsorships to help pay for the costs of a conference, fundraiser, or other costly event. Money from deep pockets is optimal, but you don’t want the IRS to consider the payments “paid advertising”, and thus taxable as unrelated business income.
As people have become more vocal about socializing online, businesses have been listening. Social listening. And now not-for-profits are beginning to join them.
This new approach has become a cost-effective way organizations can see what interests their supporters, along with a great way to gain more momentum within their organization. So, what exactly is social listening, and how do I get started?
Not-for-profit organizations (“NFPs”) may not realize that operating outside their home state may create regulatory and tax compliance responsibilities. States have a vested interest in making sure that NFPs are operating for their intended charitable purposes, and are not fraudulently soliciting its residents for donations.
The Financial Accounting Standards Board, also known as FASB, has released Accounting Standards Update (“ASU”) 2016-14 with huge changes for Not-for-Profit Entities (“NFPs”). You’re probably wondering why there even was an update. Great question.
Everyone, it might seem, wants to know how effectively your not-for-profit is fulfilling its mission and running its operation. Performance, or outcome, measurement — essentially a way to determine the impact of a program or activity — can supply interested onlookers with the proof they need to know you’re doing your job. Unlike traditional measures, such as number of clients served or amount of donations received, these “super metrics” allow an organization to assess whether a program is achieving its intended results.