Helping your nonprofit’s board make sense of financial reports
Board members don’t need accounting credentials to provide effective oversight. In fact, many nonprofit boards are intentionally composed of individuals with diverse backgrounds in fundraising, program delivery, community leadership, marketing, law, and other fields. The challenge for management is presenting financial information that’s clear, relevant and meaningful to everyone around the table. Start with the […]
Build a more resilient nonprofit with revenue diversification
When external conditions change — whether due to economic shifts, policy adjustments or evolving donor priorities — nonprofits that depend on one or two funding sources often face greater financial risk. Organizations that intentionally diversify their revenue streams are better positioned to adapt quickly and continue delivering on their mission. Strategically broadening a funding mix […]
Putting a price on donated goods: What nonprofits need to know
Nonprofits of all sizes often receive donations of tangible property, from clothing and household goods to artwork and equipment. But determining how to value those items isn’t always straightforward. Whether an organization is newly formed or well established, uncertainty around valuation can create challenges for accurate financial reporting and donor documentation. Understanding the basic rules […]
Building a Better Nonprofit Budget
Does your nonprofit start its budget process from scratch each year or do you mostly make adjustments to the previous year’s budget? Either way, if your organization operates on a calendar-year basis, now is a great time to start thinking about this important annual process. Opportunities such as diversifying grant funding and meeting growing service […]
4 Key Measures for Nonprofits to Control Expenses and Improve Efficiency
OK, that would be an exaggeration. But there are four measures that generally matter more than the rest. To control your not-for-profit’s expenses and improve operating efficiency, you need to keep an eye on the numbers. This should come as no surprise. But which measures are important? Which ratios can help you identify how much […]
Pinched nonprofits may want to free up board-designated assets
In general, nonprofits can’t use restricted assets for purposes other than those specified by the original donor. Board-designated assets (or board-designated funds) are another matter. These are unrestricted funds that have been reserved by an organization’s leadership for a special purpose or a period of time. Your board can later decide to remove designations. But […]
The OBBBA: What it means for nonprofits
On July 4, 2025, President Trump signed the One, Big, Beautiful Bill Act (OBBBA), which contains several provisions that may affect your not-for-profit organization. Let’s take a look at a couple of the bigger changes. Excess compensation tax Since 2018, an excise tax has applied to nonprofits that compensate “covered employees” (generally the five most highly […]
Put qualified charitable distributions to work for your nonprofit
Individuals with traditional IRAs generally are mandated to start taking required minimum distributions (RMDs) after they reach age 73. However, they have the option of making qualified charitable distributions (QCDs) to their favorite nonprofits to satisfy their RMDs. This tax allowance provides several benefits for donors and, of course, can be beneficial for charities. History of […]
Beyond the Annual Audit: Why Your Nonprofit Needs Year-Round Revenue Health Checks
Without a predictable revenue stream, you’ll have a hard time budgeting, funding priorities and planning for the future. Right now, many organizations are grappling with sudden federal grant cuts. If this is your nonprofit’s situation — and even if it isn’t — you should assess your revenue streams between audits using the same techniques professional […]
When corporate sponsorships raise UBIT issues
Under the Internal Revenue Code, “qualified sponsorship payments” to not-for-profits aren’t subject to unrelated business income tax (UBIT). Qualified payments refer to money, property transfers or the performance of services by a business without an expectation or arrangement that the business will receive any “substantial return benefit” in exchange. However, some corporate sponsorships don’t qualify, […]