Category: not for profit

A successful fundraising campaign can generate commitments that stretch well beyond the current year. Those pledges can help your nonprofit plan ahead. But when should they appear in your financial statements, and for how much? Under U.S. Generally Accepted Accounting Principles (GAAP), the answers depend on the terms of each promise, expected payment schedule and…

Donor restrictions can limit how contributions may be used (such as to fund a program) or when they may be used. Those terms can help connect donor priorities with your nonprofit’s work. But they also create obligations that your organization must understand and monitor. Using a gift in a way that violates its terms can…

Spring audit fieldwork may seem distant when your nonprofit is busy with year-end fundraising and program demands. But for organizations with a December 31 year end, the final months of 2026 offer a valuable opportunity to organize records, resolve accounting questions and coordinate with auditors. Reconcile and support balances An annual financial statement audit can…

These days, many people are evaluating recurring expenses and deciding which memberships deserve a place in their budgets. At the same time, members increasingly expect personalized experiences, flexible engagement options and clear value from the organizations they support. If renewals are slowing at your nonprofit, it’s time to strengthen your retention strategy. Learn what today’s…

Most nonprofits begin with a deep commitment to serving a mission — not a love of financial management. Yet as organizations grow, financial oversight becomes increasingly complex and critical. This often leads to an important question: Is it time to hire a chief financial officer (CFO)? The answer depends on your organization’s size, structure and…

You might be tempted to think that “accountability” is just the latest in a long line of management buzzwords. But if properly embraced, it can transform an organization. When nonprofit leaders consistently own outcomes (whether successes or setbacks), they foster a proactive mindset that anticipates challenges and addresses them head-on. The result? Stronger performance, healthier…

When external conditions change — whether due to economic shifts, policy adjustments or evolving donor priorities — nonprofits that depend on one or two funding sources often face greater financial risk. Organizations that intentionally diversify their revenue streams are better positioned to adapt quickly and continue delivering on their mission. Strategically broadening a funding mix…

Accountable plans remain the most tax-efficient way for nonprofits to reimburse employee business expenses. When properly structured and implemented, these plans allow reimbursements to be excluded from employees’ taxable income and save payroll taxes for the organization. Eligible expenses To qualify under an accountable plan, reimbursements must meet three core IRS criteria: 1) they must be…

Tension between Accounting and Development teams is more than a simple workplace issue. It can have real financial consequences for a nonprofit organization. Misaligned processes and poor communication can affect financial reporting, compliance and even grant funding. Strengthening coordination between these departments may require refining procedures and fostering collaboration. Speaking different financial languages The first…

Nonprofit leaders might assume that enterprise risk management (ERM) is something only large, complex organizations need (or can afford). But the truth is, organizations of all sizes can benefit from an ERM framework — and it doesn’t have to be complicated or resource-intensive. Whether your organization has a handful of staff or multiple departments, ERM…