Non-Profit

In recent years, the IRS has increased its scrutiny of nonprofits’ unrelated business income (UBI). Dividends, interest, rents, annuities and other investment income generally are excluded when calculating unrelated business income tax (UBIT). However, there are two exceptions where such income is taxable. 1. Debt-financed property When your nonprofit incurs debt to acquire an income-producing…

Nonprofit special events can be lucrative from a fundraising standpoint, but they also carry significant risks. Proper insurance coverage can help protect your organization. Special event, special planning Risks associated with special events run the gamut — from accidents and personal injury, to fraud and theft, to cancellation due to inclement weather or non-appearance by…

Debt is an integral part of many for-profit companies’ strategic plans, yet it has traditionally carried a stigma in the nonprofit world. That view is changing, as more organizations borrow money for major capital purchases, new program funding and other reasons. But before your nonprofit borrows, it’s important to understand that it takes prudent financial…

Every nonprofit organization needs a comprehensive succession plan to ensure smooth leadership transitions. Here are five tips for making a written plan successful: 1. Look within. It’s important to develop employees who can move up the ladder when an executive director or other senior manager leaves. But don’t rule out hiring an outsider. Promoting from…

What do charitable donors want? The classic answer is, “Go ask each one individually.” However, research provides some insight into donor motivation that can help your nonprofit grow its financial support. Taxing matters The biennial U.S. Trust® Study of High Net Worth Philanthropy, conducted in partnership with the Indiana University Lilly Family School of Philanthropy,…

Whether you’re planning to raise funds for your nonprofit with a simple bingo game or raffle, or with a more elaborate casino night, you need to understand and follow the federal rules that govern these kinds of activities. Gaming activities can open the door to unexpected taxes and trigger requirements for specific IRS filings. Filings…

Is your nonprofit association offering enough (or the right) programs to keep members active and engaged? New programs require time, effort and money. So when you commit to developing one, you want to get the biggest bang for your buck. Here are some simple dos and don’ts: DO consult your members. Through focus groups, surveys…

To err is human, but your not-for-profit’s supporters, not to mention the IRS, may be less than forgiving if errors affect your financial books. Fortunately, if you attend to accounting details, you can avoid these common pitfalls: 1. Failing to follow accounting procedures. Even the smallest nonprofit should set formal, documented and detailed procedures for…

What would happen if one of your not-for-profit’s key people suddenly quit or had to go on long-term disability? Would you be able to conduct business as usual? To prevent a critical function from possibly coming to a standstill, consider cross-training staff. Organization benefits Cross-training personnel means that you teach them how to do one…