High-net-worth individuals donated $5.8 billion during the first six months of the COVID-19 pandemic — generous giving by most standards. This is according to a recent report, “Philanthropy and COVID-19 in the first half of 2020,” from the Center for Disaster Philanthropy and information service Candid. However, that $5.8 billion amount is deceptive, because nearly three-quarters of it came from one donor, Mackenzie Scott (the ex-wife of Amazon’s Jeff Bezos).

two women writing on papers with data and pie charts on a table; image used for blog post about not-for-profits reaching out to high-net-worth individuals for funding

In fact, a 2020 study from the Milken Institute Center for Strategic Philanthropy found that only a relatively small percentage, 36%, of the ultra-wealthy are involved in charitable giving. This may sound like ominous news for not-for-profit organizations. But there are ways to tap this group’s ample resources.


Continue Reading Consider High-Net-Worth Individuals for Your NFP Efforts

Jen: This is The PKF Texas – Entrepreneur’s Playbook®. I’m Jen Lemanski, and I’m back again with Nicole Riley, an Audit Director and one of the faces of the PKF Texas not-for-profit team. Nicole, welcome back to the playbook.

Nicole: Hi, good morning.

Jen: Data analytics. You hear that a lot. What are they and how do they impact a not-for-profit organization?


Continue Reading Why Your Not-for-Profit Should Use Data Analytics

Many not-for-profits are just starting to emerge from one of the most challenging environments in recent memory due to the COVID-19 pandemic. Even if your organization is in good shape, don’t get too comfortable. Financial obstacles can appear at any time and you need to be vigilant about acting on certain warning signs.

black and yellow diagonal stripes of a warning sign; image used for blog post about financial warning signs for not-for-profits

Consider the following.


Continue Reading Not-for-Profits: Don’t Ignore These Financial Warning Signs

Jen: This is The PKF Texas – Entrepreneur’s Playbook®. I’m Jen Lemanski, and I’m back again with Nicole Riley, an Audit Director and one of the faces of the PKF Texas not-for-profit team. Nicole, welcome back to the playbook.

Nicole: Thanks. Thanks for having me.

Jen: There’s different departments in a not-for-profit organization. Two of the main ones are finance and development. Why is it important for those two to be collaborative?


Continue Reading The Importance of Finance and Development Collaboration

According to the Nonprofit Times, only 41% of not-for-profits have whistleblower policies. Perhaps not-for-profit leaders believe their organizations are too small or collegial to worry about illicit activities — let alone people reporting them.

white paper cutouts of heads and one red cutout blowing a whistle; image used for blog post about whistleblower policies for not-for-profits

Or perhaps a whistleblower policy seems like one more thing that requires time and money they don’t have. This is a mistake. Here’s why.


Continue Reading Protect Your Not-for-Profit with Whistleblower Policies

How committed is your not-for-profit organization to benchmarking? Perhaps you think it makes sense in the for-profit sphere, but not as much for charities and other not-for-profits. If so, you’re probably missing out on benefits — including long-term sustainability.

man looking at documents with data and charts; image used for blog post about benchmarking for not-for-profits

Here’s how to overcome reluctance and learn to love benchmarking.


Continue Reading Time to Embrace Benchmarking for Your Not-for-Profit

Jen: This is The PKF Texas – Entrepreneur’s Playbook®. I’m Jen Lemanski, and I’m back once again with Emily Smikal, a tax director and one of the faces of our PKF Texas not-for-profit team. Emily, welcome back to the Playbook.

Emily: Thanks for having me again.

Jen: So, I know for profit organizations can be audited by the IRS. I’m assuming not-for-profit organizations can also be audited for the IRS. Are there any steps that they can take to maybe avoid an audit?

Emily: Yes, not-for-profit entities can be audited, and so, it’s important to just understand how the IRS selects which organizations they’re going to audit so you can be somewhat prepared for that. So, first of all, you can’t fully know; they will randomly select organizations to audit, but there are some common triggers to just be aware of.

Jen: What are those triggers?


Continue Reading How Your NFP Can Avoid Pitfalls of an IRS Audit

Events of the past year put a dent in many not-for-profit’s operating reserves. Perhaps you tapped this stash to buy personal protective equipment or to pay staffers’ salaries when your budget no longer proved adequate.

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As the pandemic wanes and economic conditions improve, you’ll need to start thinking about rebuilding your operating reserves.


Continue Reading How to Rebuild Your Not-for-Profit’s Operating Reserves

Jen: This is The PKF Texas – Entrepreneur’s Playbook®. I’m Jen Lemanski, and I’m back again with Emily Smikal, a Tax Director and one of the faces of the PKF Texas not-for-profit team. Emily, welcome back to the Playbook.

Emily: Thanks. Glad to be here again.

Jen: People think not-for-profits they think, “Oh, they don’t pay taxes.” Do they have to fill out forms? I suspect the answer is yes, so, what type of tax forms do not-for-profit organizations have to fill out?

Emily: Your suspicion is correct. So, there’s a handful of different types of forms, so it is important to understand the differences, and which form your organization may be required to file.


Continue Reading The Tax Forms Not-For-Profits Need to File

Thousands of not-for-profit organizations fall victim to embezzlement schemes every year — some even losing millions of dollars. But losses go beyond actual dollar amounts. The hit to a group’s reputation may scare off donors, grantmakers and other supporters. However, with the right response, not-for-profits can bounce back from fraud.

dollar bills laid out; image used for blog post about not-for-profits recovering from fraud

Here’s how.


Continue Reading How Your Not-for-Profit Can Recover from Fraud