The CPA Desk

A Thought Leader Production by PKFTexas

Tag Archives: Not-for-Profit

Does Your Not-For-Profit Comply with Procurement Procedures?

The relatively new federal procurement standards significantly alter the way not-for-profit organizations receiving federal funding handle purchasing. And while your organization may have changed its written policies to comply with the revised standards, it may be easier to follow the rules on paper than in practice. Summing Up the Standards The standards, “Uniform Administrative Requirements,… Continue Reading

Determine if Your Not-For-Profit Income is Sponsorship or Advertising

Many not-for-profit organizations supplement their usual income-producing activities with sponsorships or advertising programs. Although you’re allowed to receive such payments, they’re subject to unrelated business income tax (UBIT) unless the activities are substantially related to your organization’s tax-exempt purpose or qualify for another exemption. So it’s important to understand the possible tax implications of income… Continue Reading

Tips for Recruiting Volunteers for Your Not-For-Profit

Most charitable not-for-profits have a never-ending need for volunteers. But finding new ones can be time-consuming — and volunteer searches aren’t always successful. Here are recruitment ideas that can help your not-for-profit. Look Nearby Is your not-for-profit familiar to businesses, residents and schools in the surrounding community? People often are drawn to volunteer because they… Continue Reading

Guidelines on Accounting Pledges to Your Not-For-Profit

When a donor promises to make a contribution at a later date, your not-for-profit likely welcomes it. But such pledges can come with complicated accounting issues. Conditional vs. Unconditional Let’s say a donor makes a pledge to your not-for-profit in April 2018 to contribute $10,000 in January 2019. You generally will create a pledge receivable… Continue Reading

Will Having an Advisory Board Benefit Your Not-For-Profit?

Your not-for-profit is likely governed by a core group of board members. But the addition of an informal advisory board can bring complementary — and valuable — skills and resources to this group. Review representation Look at your general board members’ demographics and collective profile. Does it lack representation from certain groups — particularly relative… Continue Reading

Tips for Fostering Beneficial PR for Your Nonprofit

For most nonprofit organizations, there’s no such thing as too much good publicity. If you’re struggling to get enough attention from media outlets, follow these tips: 1. Seize the day. Raise your nonprofit’s profile by putting out news releases regularly rather than just occasionally. A variety of events, such as the addition of a key… Continue Reading

Spring cleaning: Review your nonprofit’s programs — and possibly replace some

Has your not-for-profit’s program lineup remained unchanged for at least a couple of years? If so, consider using the tradition of spring cleaning to review your offerings. Some of your programs might be due for replacement. Clear out the closets Many nonprofits keep programs long after they’ve stopped working. Instead of relying on old assumptions… Continue Reading

It’s time for nonprofits to embrace the cloud

Cloud computing promises lower technology costs and greater efficiency and productivity. Yet many nonprofits have yet to move to the cloud, possibly because their staffs are smaller and their IT expertise is limited. Fortunately, cloud computing is a simple concept that’s easy to adopt. Remote control Cloud computing, also known as “software as a service,”… Continue Reading

Boosting the matching gifts your nonprofit receives

Corporate matching can double the value of donors’ gifts — a bonus no not-for-profit organization can afford to pass up. Are you doing everything you can to educate your financial supporters and their employers about matching gifts? Encourage donors and employers Most matching programs are managed by HR departments, which provide employees with matching gift… Continue Reading

Making the most of your nonprofit’s internal audit function

The key role of a not-for-profit’s internal auditors was once limited largely to testing financial and compliance controls and reporting their findings to the organization’s leadership. But today, with their cross-departmental perspective, internal audit staff (whether employees or outside consultants) can help anticipate and mitigate a variety of risks, improve processes — and even help… Continue Reading

Is Your Nonprofit Doing What It Takes to Avoid a Conflict of Interest?

Not-for-profit board officers, directors, trustees and key employees must avoid any conflict of interest because it’s their duty to do so. Any direct or indirect financial interest in a transaction or arrangement that might benefit one of these individuals personally could result in the loss of your organization’s tax-exempt status — and its reputation. Here’s… Continue Reading

How Your Nonprofit Can Successfully Execute a Capital Campaign

When your not-for-profit desperately needs a new facility, costly equipment or an endowment, a capital campaign can be the best way to raise funds. But to be successful, a campaign requires strong leadership, extensive planning and dedicated participants. Leading the troops Capital campaigns generally are long-term projects — often lasting three or more years. To… Continue Reading

Maximize Donor Generosity This Holiday Season

People are naturally inclined to make charitable gifts around the holidays. With the end of the year fast approaching, your not-for-profit should prepare now to take advantage of donors’ generosity. Here are four tips for making the most of the season: Strike early. Plan events or solicitations for early December or sooner. By being one… Continue Reading

Is Your Not-for-Profit Board Following These Governance Practices?

Jen:  This is the PKF Texas Entrepreneur’s Playbook.  I’m Jen Lemanski, this week’s guest host, and I’m back again with Nicole Riley, one of our Audit Senior Managers on our not-for-profit team; welcome back to the Playbook Nicole. Nicole:  Thanks, glad to be here. Jen:  Now I’ve heard you talk about Governance procedures; what does… Continue Reading

Term Limits on Your Nonprofit Board. Yes or No?

Term limits for not-for-profit board members can be a double-edged sword. They can allow you to easily let go of unsuccessful board members, but they also can cause you to lose the best sooner than you’d like. Consider some of the issues involved before making a decision. Review the pros Term limits allow you to… Continue Reading

Nonprofits: Harness the power of the personal appeal

You’ve probably heard it before: People don’t give to causes — they give to those asking on behalf of a cause. That’s why a personal appeal continues to be such a powerful not-for-profit fundraising tool. In fact, requests from friends or family members typically drive most charitable donations. By appealing to their networks, board members… Continue Reading

When does your nonprofit owe UBIT on investment income?

In recent years, the IRS has increased its scrutiny of not-for-profits’ 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… Continue Reading

Nonprofits Should Avoid Excess Benefit Transactions…Here’s Why

Not-for-profits that ignore the IRS’s private benefit and private inurement provisions do so at their own peril. These rules prohibit an individual inside or outside a nonprofit from reaping an excess benefit from the organization’s transactions. Violation of such rules can have devastating consequences. Defining terms A private benefit is any payment or transfer of… Continue Reading

Insurance Options for Nonprofit Fundraising Events

Not-for-profit 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 nonappearance by a… Continue Reading

Three Things Your Nonprofit’s Board Needs to Know

Information is power. And regularly supplying information to your not-for-profit’s board of directors is the key to the board properly fulfilling its duties. This doesn’t mean you have to share every internal email or phone message. Board members should, however, receive and understand information that will help them work together and better serve your organization…. Continue Reading