Jen: This is the PKF Texas Entrepreneur’s Playbook. I’m Jen Lemanski, and I’m back again with Annjeanette Yglesias, one of our tax managers and a member of our not-for-profit team. Annjeanette, welcome back to the playbook. Annjeanette: Hi, Jen, it’s nice to be here. Jen: So, we’ve talked a lot about different not-for-profit topics, and… Continue Reading
Tag Archives: Nonprofit
Best Practices – Financials for Religious Congregations
Churches, synagogues, mosques and other religious congregations aren’t required to file tax returns, so they might not regularly hire independent accountants. But regardless of size, religious organizations often are subject to other requirements, such as paying unrelated business income tax (UBIT) and properly classifying employees. Without the oversight of tax authorities or outside accountants, religious… Continue Reading
Dos and Don’ts of Not-for-Profit Member Surveys
You can’t serve the needs of your not-for-profit’s members unless you know what those needs are. Many organizations take the pulse of their membership with regular surveys but fail to conduct them strategically — and end up with useless information. Instead, maximize your next survey’s effectiveness by focusing on your objectives during every stage of… Continue Reading
How Tax Reform Directly–and Indirectly–Impacts Not-for-Profits
Jen: This is the PKF Texas Entrepreneur’s Playbook. I’m Jen Lemanski, and I’m back again with Annjeanette Yglesias, one of our tax managers and a member of our not-for-profit team. Annjeanette, welcome back to The Playbook. Annjeanette: Thanks, Jen. It’s good to be here. Jen: So, tax manager, tax reform is a hot topic this… Continue Reading
Three Tips for Not-for-Profits to Improve Accounting and Development
Communication breakdowns between a not-for-profit’s accounting and development departments can lead to confusion, embarrassment and even financial problems. Here are three ways your organization can facilitate cooperation between these two critical functions. 1. Recognize Differences Accounting and development typically record their financial information differently, which is why they can produce numbers that vary but nonetheless… Continue Reading
The Differences Between Public Charities and Private Foundations
Jen: This is the PKF Texas Entrepreneur’s Playbook. I’m Jen Lemanski, and I’m back again with Annjeanette Yglesias, one of our tax managers and a member of our not-for-profit team. Annjeanette, welcome back to the Playbook. Annjeanette: Thanks, Jen. It’s good to be here. Jen: So, not-for-profit… you work with different organizations, and I think… Continue Reading
How the “Commerciality Doctrine” Can Trip Up Your Not-for-Profit
The commerciality doctrine was created along with the operational test to address concerns over not-for-profits competing at an unfair tax advantage with for-profit businesses. But even business activities related to your exempt purpose could fall prey to the commerciality doctrine, resulting in the potential loss of your organization’s exempt status. Several Factors Considered The operational… Continue Reading
Best Practices – 5 Delegation Tips for Not-for-Profit Leaders
Done well, delegation allows not-for-profit executives to focus on their most important tasks, helps to build bench strength and gets staffers out of the office before midnight. But done poorly, it can create more burdens than it eases. Here are five practices all not-for-profit leaders should adopt. 1. Choose Tasks Wisely Always try to devote… Continue Reading
Fiscal Sponsorships – How They Work for Charities
Fiscal sponsorships occur when an established charity provides a kind of legal and financial umbrella to a charitable project that lacks 501(c)(3) status. This type of arrangement can benefit both groups. But before agreeing to be a sponsor, be sure you understand how these arrangements work and the risks involved. Mutually Beneficial In a fiscal… Continue Reading
Tips: Make Your Not-for-Profit’s Accounting More Efficient
How efficient is your not-for-profit? Even tightly run organizations can use some improvement — particularly in the accounting area. Adopting the following six tips can help improve timeliness and accuracy. Set cutoff policies. Create policies for the monthly cutoff of invoicing and recording expenses — and adhere to them. For example, require all invoices to… Continue Reading
How Charity Watchdogs Impact Not-For-Profit Organizations
Jen: This is the PKF Texas Entrepreneur’s Playbook. I’m Jen Lemanski, and I’m back once again with Annjeanette Yglesias, one of our tax managers and a member of our not-for-profit team. Annjeanette, welcome back to the Playbook. Annjeanette: Thanks, Jen. It’s nice to be here. Jen: So, we’ve talked before about the Donor Bill of… Continue Reading
Has Your Not-for-Profit Successfully Transitioned from Overhead to Impact?
In the not-so-distant past, charity watchdog groups such as GuideStar, Charity Navigator and the Better Business Bureau’s Wise Giving Alliance were notorious for giving overhead ratios significant weightings in their rankings of not-for-profits. While such a practice can help potential donors weed out spendthrift organizations, it also tends to unfairly penalize not-for-profits making reasonable expenditures… Continue Reading
What is the Donor Bill of Rights?
Jen: This is the PKF Texas Entrepreneur’s Playbook. I’m Jen Lemanski, and I’m back again with Annjeanette Yglesias, one of our tax managers and a member of the PKF Texas Not-for-Profit team. Annjeanette, welcome back to the Playbook. Annjeanette: Hey, Jen. It’s nice to be here. Jen: So, I’ve heard about this thing called a… Continue Reading
How Your Not-for-Profit’s Internal and Year-End Financial Statements Can Differ
Do you prepare internal financial statements for your board of directors on a monthly, quarterly or other periodic basis? Later, at year end, do your auditors always propose adjustments? What’s going on? Most likely, the differences are due to cash basis vs. accrual basis financial statements, as well as reasonable estimates proposed by your auditors… Continue Reading
The Best-Suited Charity Vehicle for Family Philanthropy – What to Consider
The Houston Business Journal published an article on their website co-authored by PKF Texas Tax Practice Leader and Director, J. Del Walker, CPA, and Tax Manager, Annjeanette Yglesias, CPA. The article discusses the differences between a private foundation (PF) and the donor advised fund (DAF), which impact family philanthropy efforts. So, what are the differences?… Continue Reading
Tips on Valuing Donated Property
Not-for-profits often struggle with valuing noncash and in-kind donations. Whether for record-keeping purposes or when helping donors understand proper valuation for their charitable tax deductions, the task isn’t easy. Although the amount that a donor can deduct generally is based on the donation’s fair market value (FMV), there’s no single formula for calculating it. FMV… Continue Reading
Why Your Not-For-Profit Needs to Embrace Accountability
To protect the organization, demonstrate openness and support the greater good, your not-for-profit needs to embrace accountability. Doing so will also help you fulfill your fiduciary responsibilities to donors, constituents and the public. Fairness and Clarity Accountability starts by complying with all applicable laws and rules. As you carry out your organization’s initiatives, do so… Continue Reading
Using Insurance for Not-For-Profit Risk Management
Insurance is the cornerstone of any not-for-profit’s comprehensive risk management plan. It can’t protect your organization from every contingency, but it’s critical to protecting the people, property, funds and support you depend on. Must-Have Policies Many kinds of coverage are available, but it’s unlikely your organization needs all of them. One type you do need… Continue Reading
Leadership Tips for Not-For-Profit Mergers
If your not-for-profit is contemplating a merger or acquisition with another organization, you have a lot of work ahead of you. One of the most daunting challenges is keeping leaders focused and invested in the process. Most not-for-profits are run by both board members and internal management, and this structure can bog down decision making… Continue Reading
How Not-For-Profits Can Protect Volunteers as Assets
How much are your volunteers worth? The not-for-profit advocacy group Independent Sector estimates the value of the average American volunteer at $24.69 an hour. Volunteers who perform specialized services may be even more valuable. Whether your entire workforce is unpaid or you rely on a few volunteers to support a paid staff, you need to… Continue Reading
Tips on Compensating Not-For-Profit Board Members
Contrary to popular belief, it’s usually perfectly legal to compensate not-for-profit board members — and sometimes it might even be necessary. But is it right for your organization? Pros and Cons Board member compensation comes with several pros and cons to consider. Your organization might, for example, find it worthwhile to offer compensation to attract… Continue Reading
Changes in How Not-For-Profits Present Their Financials
Jen: This is PKF Texas The Entrepreneur’s Playbook. I’m Jen Lemanski, and I’m back again with Danielle Supkis Cheek, a director on our Entrepreneurial Advisory Services team, as well as our not-for-profit team. Danielle, welcome back to the Playbook. Danielle: Thank you again. Jen: I know there have been some pretty big changes on how… Continue Reading
Not-For-Profits: Is it Time to Reconsider a Special Event?
Not-for-profits use special events to raise large amounts in a short period of time. Most often, the donor receives a direct benefit from the event — such as dinner or participation in a gaming activity. But special events don’t always meet their fundraising goals. In fact, organizations can lose money on them. Following these steps… Continue Reading
Licensing Arrangement Considerations for Not-For-Profits
Licensing your not-for-profit’s name to a for-profit company can provide a valuable new revenue source — but it can also be risky. If you’re considering a licensing arrangement, ensure that the partnership really will generate funds and, possibly more important, a positive impression of your brand. Success . . . and Controversy When a licensing… Continue Reading
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