Nonprofits Can Benefit from AI Technology

You might think that artificial intelligence (AI) is just about using computers to perform complex tasks that otherwise would require human intelligence. That’s part of AI. But several technologies fall under the AI umbrella, including machine learning, natural language processing (NLP) and robotic process automation. Here’s how tools such as these can help nonprofits cut […]

Give Your Staffers a Break with an Accountable Plan

Accountable plans reimburse employees for work-related expenses free of federal income and employment taxes. So reimbursement payments aren’t subject to withholding from staffers’ paychecks. Your nonprofit also benefits because the reimbursements aren’t subject to the employer’s portion of federal employment taxes. Most prospective employees probably won’t accept a job based on the availability of an […]

Does Your Nonprofit Have an Internal Controls Gap?

The typical defrauded nonprofit loses $75,000 per fraud incident, according to the Association of Certified Fraud Examiners. And that doesn’t account for the negative publicity and subsequent lost donations and support that often follow fraud. Although no preventive measure is 100% effective, strong internal controls can greatly reduce the risk that a crooked staffer or […]

Put Some Muscle behind Your Nonprofit’s Capacity-Building Effort

Economic instability caused by the pandemic may have your nonprofit scrambling to find funding. But just as important is making internal adjustments that build your nonprofit’s capacity to fulfill its long-term mission. However, you may want to tweak the standard capacity-building process. Making a Case The National Council of Nonprofits defines “capacity building” as the […]

Five Ways Nonprofits Can Prepare for an Audit

No nonprofit looks forward to annual audits. But regular maintenance and preparation specific to an impending audit can make the process less disruptive. We recommend taking the following steps. 1. Reconcile Routinely You shouldn’t wait until audit time to reconcile accounts — for example, cash, receivables, pledges, payables, accruals and revenues. Reconcile general ledger account […]

HR Outsourcing: Considerations for Nonprofits

The global market for human resources outsourcing was approximately $32.8 billion in 2020 and is projected to rise to $45.8 billion by 2027, according to market research company Reportlinker. Should your nonprofit join the many organizations that have already determined that outsourcing HR makes financial and operational sense? Here’s what you should consider before acting. […]

Does Your Nonprofit Owe Tax on Its Sponsorships and Advertising?

Your nonprofit may prefer to avoid activities that subject it to unrelated business income tax (UBIT). But if you accept advertising or sponsorships that aren’t substantially related to your tax-exempt purpose, you may unwittingly expose your organization to UBIT liability. The rules governing these types of support are complicated, so it’s important to have a […]

Nonprofit Fundraising: From Ad Hoc to Ongoing

When nonprofits first start up, fundraising can be an ad hoc process, with intense campaigns followed by fallow periods. As organizations grow and acquire staff and support, they generally decide that fundraising needs to be ongoing. But it can be hard to maintain focus and momentum without a strategic fundraising plan. Here’s how to create […]

Cryptocurrency Donations: Will Your Nonprofit Accept Them?

Cryptocurrency has gone mainstream, and if you’ve been sitting on the fence about accepting donations in virtual currency, it’s time to make a decision. But before your nonprofit says “yes” to a Bitcoin (or other cryptocurrency) gift, make sure you understand the issues involved — including the risks. Virtual Currency = Risk Cryptocurrency refers to […]

New Accounting Rules for Gifts in Kind

If your nonprofit organization accepts contributions of nonfinancial assets, such as land, services and supplies, you should know about Financial Accounting Standards Board (FASB) rules approved last year. Accounting Standards Update (ASU), Not-for-Profit Entities (Topic 958): Presentation and Disclosures by Not-for-Profit Entities for Contributed Nonfinancial Assets is intended to increase transparency around gifts in kind. […]