No audits required? Do it anyway.
Your not-for-profit may not be required to undergo regular audits. But an audit can reassure donors and other stakeholders that you take seriously your responsibility. Audits can also help you identify risks before they become intractable problems. Here’s how to initiate and prepare for an audit. Find and meet with an auditor Start by drafting […]
Your nonprofit’s board needs to know these financial red flags
Is your board staring at financial red flags without knowing it? Although some warning signs — such as those experienced when the pandemic first hit — are obvious, others are easy to overlook. Here are several signs of trouble that board members need to be aware of and prepared to act on. Unexplained variances and […]
Keeping your nonprofit’s remote workers connected
Many employees have embraced the opportunity to work from home during the pandemic — but not all of them. Some remote workers have experienced feelings of disconnection and isolation. So if your not-for-profit plans to make remote working a longer-term proposition, you should look for ways to make everyone feel connected to the job and […]
What your nonprofit needs for a successful capital campaign
Many nonprofits have put major purchases and other ambitious initiatives on hold during the pandemic. But if you need to buy or expand a facility, purchase expensive equipment, or seed an endowment, your organization may not want to wait any longer. A capital campaign to raise funds can be more difficult at this time — […]
Why NFPs Should Make Cybersecurity a 2022 Priority
Summary As nonprofits look to the year ahead, they would be remiss to ignore a few of the events from last year: cyberattacks affecting large companies, government organizations, public schools, and nonprofits. Hackers don’t have to attack your nonprofit directly, as seen in the attack on Kaseya, an IT software provider. When Kaseya was attacked, […]
Handle your nonprofit’s restricted gifts with care
Most not-for-profits encourage donors to make unrestricted contributions that will give the organization flexibility to use the money where it’s needed most. But there will always be some donors who give restricted gifts — and these require a higher level of responsibility. If your nonprofit fails to use a restricted donation as intended, it’s possible […]
3 steps to boost financial resilience
It’s a new year with new opportunities for your not-for-profit to boost its financial resilience. Although COVID-19 continues to make forecasting difficult, your staff and your board’s finance committee can take steps to negotiate obstacles. Here are three. 1. Managing reserves and cash flow Financial reserves have taken a hit across all types of nonprofits, […]
Budgeting ideas for uncertain times
Budgeting, like many other things, was generally easier before COVID-19. Even though the pandemic isn’t over and much remains uncertain, not-for-profits need to plan their financial needs and project financial resources. But you might be able to make the budgeting process more effective by trying a new approach — for example, a rolling budget — […]
A credit card use policy can help prevent abuse
During the busy holiday season, not-for-profit executives may rely on staffers to purchase gifts and holiday party supplies for the organization. But before you hand over a credit card, you need to make sure that the employee is trustworthy and understands your nonprofit’s credit card use policy. Don’t have a policy? Here’s how to establish […]
Why excess benefit transactions are out-of-bounds
Emily was a dedicated board member of her community’s most prominent social-services charity. But her commitment to the cause and the nonprofit’s programs didn’t prevent her from inadvertently violating the rule against excess benefit transactions. This happened when the organization wanted to build a new facility and bought land from her even though similar, and […]