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Religious congregations usually enjoy greater protection from federal government oversight than other not-for-profit organizations. For example, the IRS can’t conduct a “church tax inquiry” unless a high-level Treasury Department official has written evidence that a religious organization has violated tax-exempt rules.

However, you’d do your faith group a great disservice it you failed to observe IRS rules and financial best practices. Even if your congregation escapes government scrutiny, it could fall victim to fraud — or general mismanagement — that harms your members and reputation.

UBIT concerns

To effectively prevent financial and other critical mistakes, make sure your religious congregation complies with IRS rules and federal and state laws. In particular, watch out for unrelated business income tax (UBIT). If your organization regularly engages in any type of business activity that’s unrelated to its religious mission, be aware of certain tax and reporting rules. Income from such activities could be subject to UBIT.

For example, if you charge members of your congregation to park in your lot to attend religious services, that income generally isn’t taxable. However, if you collect parking fees from the general public to use your lot, they are likely to be subject to UBIT. Other sources of unrelated business income can be publications, clothing and other merchandise, advertising, and gaming activities that generate income. If your organization has $1,000 or more in annual income from unrelated business income, it must file Form 990-T with the IRS.

Other issues to watch for

Religious congregations aren’t always clear about employment status and wages for clergy and other workers. Most clergy should be treated as employees and receive W-2 forms. Typically, they’re exempt from Social Security taxes, Medicare taxes and federal withholding but are subject to self-employment tax on wages. A parsonage (or housing) allowance can reduce income tax, but not self-employment tax.

If you have non-clergy employees, you must withhold federal, Social Security and Medicare taxes from their paychecks. You also must follow federal labor laws, such as those related to minimum and overtime wages.

In this election year, it’s especially important to understand that your organization shouldn’t devote a substantial part of its activities to attempting to influence legislation. Religious organizations are generally barred from endorsing or campaigning on behalf of political candidates or parties. Otherwise, you might risk your tax-exempt status and face potential penalties.

Foiling fraud

Faith groups can be particularly vulnerable to fraud because they generally foster an environment of trust. Also, they may be reluctant to punish offenders. Just keep in mind that even the most long-standing members may be capable of embezzlement when faced with extreme circumstances.

Require that at least two people handle all contributions. They should count cash in a secure area and verify the contents of offering envelopes. Next, they should document their collection activity in a signed report. For greater security, encourage your members to make electronic payments on your website or sign up for automatic bank account deductions.

Best practices

Even though religious congregations aren’t required to file tax returns or conduct financial audits, they must comply with applicable IRS rules and other regulations. Contact us, Online Stewardship, or our parent company Patrick & Raines, with questions. You can reach out by calling (904) 396-5400 or emailing Lynn@onlinestewardship.com or office@CPAsite.com.

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Filed under: General by OSA&C Tuesday, November 15th, 2022
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Whew! That’s probably your reaction when outside experts announce that their audit of your not-for-profit is complete. But even if auditors have left your premises and returned the documents they’ve reviewed, the work isn’t really over. Not only do your executive director and board need to review the audit report, but it may be necessary to address auditor concerns by making changes to your organization.

Review the draft

Once outside auditors complete their work, they typically present a draft report to an organization’s audit committee, executive director and senior financial staffers. Those individuals should take the time to review the draft before it’s presented to the board of directors.

Your audit committee and management also need to meet with the auditors before the board presentation. Often auditors will provide a management letter (also called “communication with those charged with governance”) highlighting operational areas and controls that need improvement. Your nonprofit’s team can respond to these comments, indicating ways they plan to improve operations and controls, to be included in the final letter. The audit committee also can use the meeting to ensure the audit is properly comprehensive.

Assess internal controls

The final audit report will state whether your nonprofit’s financial statements present its financial position in accordance with U.S. Generally Accepted Accounting Principles. The statements must be presented without any inaccuracies or “material” — meaning significant — misrepresentation.

The auditors also will identify, in a separate letter, specific concerns about material internal control issues. Adequate internal controls are critical for preventing, catching and remedying misstatements that could compromise the integrity of financial statements. If the auditors have found your internal controls to be weak, promptly shore them up.

Gather feedback

One important audit committee task is to obtain your executive director’s impression of the auditors and audit process. Were the auditors efficient, or did they perform or require redundant work? Did they demonstrate the requisite expertise, skills and understanding? Were they disruptive to operations? Consider this input when deciding whether to retain the same firm for the next audit.

The committee also might want to seek feedback from employees who worked most closely with the auditors. In addition to feedback on the auditors, they may have suggestions on how to streamline the process for the next audit.

Fiscal responsibility

Your donors, grantmakers and other supporters expect your organization to do everything in its power to ensure funds are used appropriately and responsibly. If you fail to act on issues identified in an audit, it could lead to asset misappropriation and seriously damage your nonprofit’s reputation and viability. Contact us if you have questions, require an audit or need help improving internal controls.  You can reach out to Online Stewardship or our parent company, Patrick & Raines. Get in touch by calling (904) 396-5400 or emailing Lynn@onlinestewardship.com or office@CPAsite.com.

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Filed under: General by OSA&C Tuesday, November 1st, 2022
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People give to charity for many reasons — to “make a difference” or “give back,” to reduce their tax burden and even to impress their peers. These many motivations can be frustrating for not-for-profits looking for a magic formula. In the absence of one, you need to keep your eyes and ears open and be prepared to act on information as it becomes available.

Dollars and tax sense

Asset protection and capital preservation traditionally have motivated many wealthy individuals to make charitable donations. And certain strategies — such as gifting appreciated stock or real estate — may be particularly appealing to donors who make charitable giving a piece of their larger financial and tax minimization plans.

But high-income donors sometimes have less-obvious financial motivations, such as a wish to limit the amount their children inherit to prevent a “burden of wealth.” Bill Gates and Melinda French Gates, for example, plan to leave the vast majority of their wealth to their charitable foundation rather than to their children. To appeal to these kinds of donors, you may want to offer to work with the entire family — possibly through a family office — so that they can begin a multigenerational tradition of giving.

Evolving focus

Recent focus groups assembled by the Indiana University Lilly Family School of Philanthropy have yielded valuable information about what motivates charitable donors. For example, donors say they give more to charities with which they have personal connections. They’re also more motivated to give when they clearly understand the charitable impact of their donations. These responses highlight the importance of setting meaningful and measurable objectives and educating donors about how you’re achieving them.

Since the start of the COVID-19 pandemic and social justice protests of 2020, donors are more likely to give to “change the world” — or at least the country. One participant in the Lilly study told researchers that she seeks “authenticity and understanding in the organizations that [she] support[s], with a big emphasis on social injustice, diversity, equity and inclusion.”

Of course, various past research has indicated that people may also be motivated by less lofty ambitions. They might, say, want to make an altruistic impression or seek the prestige of being connected with a well-established and admired nonprofit “brand.” These individuals are more likely to buy pricey tickets to annual galas or join a nonprofit’s board to meet and socialize with others in their socioeconomic group or business community.

More than one factor

Donor motivation clearly isn’t simple. In fact, you can probably safely assume that most of your organization’s donors are motivated by more than one factor. So perhaps the best way to get inside their heads is to conduct your own focus groups. If you’re entertaining other ways of raising funds (besides approaching donors) be sure to confirm with your CPA (or contact Online Stewardship’s parent company, Patrick & Raines CPAs, at Office@CPAsite.com or 904-396-5400) to confirm your plans won’t be counted as business activities by the IRS.

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Filed under: General by OSA&C Wednesday, October 19th, 2022
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Perhaps your not-for-profit has lost a few board members in the turmoil of the past few years. Or maybe your current lineup simply isn’t meeting your organization’s leadership challenges. There are many reasons to review and rebuild a board of directors. But there’s no excuse to ignore problems and hope they’ll work themselves out. Here’s how to perform a board makeover.

Rebuilding effort

Start by assessing your current board. For example, determine whether your board has too few, too many or the right number of members. The correct board size depends on many factors, including your organization’s complexity of operations, annual revenue and number of people served.

Increasingly, diversity and inclusion are critical for nonprofit boards. Make sure your board reflects your community and constituents and is diverse by gender, race, religion, geography, age, expertise or other relevant factors. In general, it’s a good idea to have at least one financial professional on your board. Depending on your mission, you may want to include other experts, for example, legal or public relations professionals.

Some nonprofits ask board members to sign contracts outlining their commitment — including the time they’ll spend, the funds they promise to donate or raise, and the duties they’ll perform. If you choose to have your board members sign such a contract, make sure they’re holding up their end of the bargain while they’re serving.

From what you have to what you need

As you assess what you have, identify the talents your organization needs. For instance, you may need someone with local government experience, someone who represents the LGBTQ community, or someone with strong public speaking skills. In general, qualified board members are enthusiastic about your mission, are good team players and are willing to attend all or most board functions.

Just as you would for a paid leadership position, assemble a pool of candidates for each board seat. In many organizations, current board members supply candidates’ names. If finding the right people has been a challenge, ask friends, business colleagues and family members for suggestions. Also look to your volunteer pool for people who might be qualified.

Another idea is to invite a couple dozen community leaders to an informational luncheon to learn about your organization. At the event, ask each to recommend a potential board member. Some may even be interested in applying themselves.

Meaningful contributions

After you’ve identified a group of prospective candidates, have each fill out an application that outlines at least some of your expectations. To determine whether potential board members will be able to make a meaningful contribution, ask them to provide personal statements that define their passion for your cause. And be sure to invite prospects to attend a board meeting to meet current members and see how the board functions.

Finally, vote on the candidates, keeping in mind your “gaps” and the roles you hope they’ll fill. The process may take some work, but maintaining a responsible, knowledgeable and passionate board will pay off in years to come.  If you have any questions you can reach out to Online Stewardship or our parent company, Patrick & Raines. You can reach out by calling (904) 396-5400 or emailing Lynn@onlinestewardship.com or office@CPAsite.com.

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Filed under: General by OSA&C Tuesday, October 4th, 2022
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Despite widespread fears of recession in recent months, hiring remains strong in the United States. Employers added 528,000 jobs in July 2022 and many organizations seeking new workers are having trouble filling positions. If your not-for-profit has open slots, you might want to look to military veterans. This demographic can have a harder time finding civilian jobs, and tax breaks may be available for employers who hire them.

Qualified hires

The federal Work Opportunity Tax Credit (WOTC) is available to nonprofits on a more limited basis than to for-profit companies. Specifically, for-profit employers are eligible if they hire individuals who belong to one or more of 10 “target groups” — such as the formerly incarcerated, and individuals receiving certain types of federal assistance. Tax-exempt organizations can claim the WOTC only for hiring “qualified veterans.”

You can look for potential employees who qualify by working with your state’s workforce agencies and the Veterans Administration. Some applicants will be pre-certified, which can be helpful for employers. But pre-certification isn’t required to claim the WOTC.

If you decide to hire someone who isn’t pre-certified, you must obtain certification that they’re qualified veterans from the state workforce agency on or before their first day of work. You can also complete a pre-screening notice (IRS Form 8850) on or before the day you offer a job to a qualified veteran. Then submit the notice to the state workforce agency to request certification within 28 days of the worker’s first day on the job.

Financial incentives

The amount of the WOTC generally equals 40% of up to $6,000 of wages paid to staffers in their first year of employment (as long as they work at least 400 hours), for a maximum credit of $2,400 per employee. But for some veterans, the maximum credits are $4,800, $5,600 or $9,600. For example, you can take as much as $24,000 in wages into account when determining the credit for veterans who have service-connected disabilities and have been unemployed more than six months, for a credit of as much as $9,600.

Nonprofit employers of all sizes are eligible for the credit, and there’s no limit on the number of qualified veterans for whom you can claim it. The WOTC is limited only by the amount of your organization’s Social Security tax owed on the wages paid to all employees for the tax period in which you claim the credit.

Contact us for help

Note that newly hired veterans must work at least 120 hours before you can request the WOTC. Once you have a certification, you can claim the credit against your Social Security tax liability by filing Form 5884-C. Be sure to file the form after you’ve filed the related employment tax return for the relevant tax period.

For help with tax forms and questions about the WOTC contact Online Stewardship’s parent company, Patrick & Raines. We can help ensure your nonprofit receives all payroll tax credits for which it qualifies. You can reach us by calling (904) 396-5400 or emailing Lynn@onlinestewardship.com or office@CPAsite.com.

© 2022

Despite widespread fears of recession in recent months, hiring remains strong in the United States. Employers added 528,000 jobs in July 2022 and many organizations seeking new workers are having trouble filling positions. If your not-for-profit has open slots, you might want to look to military veterans. This demographic can have a harder time finding civilian jobs, and tax breaks may be available for employers who hire them.

Qualified hires

The federal Work Opportunity Tax Credit (WOTC) is available to nonprofits on a more limited basis than to for-profit companies. Specifically, for-profit employers are eligible if they hire individuals who belong to one or more of 10 “target groups” — such as the formerly incarcerated, and individuals receiving certain types of federal assistance. Tax-exempt organizations can claim the WOTC only for hiring “qualified veterans.”

You can look for potential employees who qualify by working with your state’s workforce agencies and the Veterans Administration. Some applicants will be pre-certified, which can be helpful for employers. But pre-certification isn’t required to claim the WOTC.

If you decide to hire someone who isn’t pre-certified, you must obtain certification that they’re qualified veterans from the state workforce agency on or before their first day of work. You can also complete a pre-screening notice (IRS Form 8850) on or before the day you offer a job to a qualified veteran. Then submit the notice to the state workforce agency to request certification within 28 days of the worker’s first day on the job.

Financial incentives

The amount of the WOTC generally equals 40% of up to $6,000 of wages paid to staffers in their first year of employment (as long as they work at least 400 hours), for a maximum credit of $2,400 per employee. But for some veterans, the maximum credits are $4,800, $5,600 or $9,600. For example, you can take as much as $24,000 in wages into account when determining the credit for veterans who have service-connected disabilities and have been unemployed more than six months, for a credit of as much as $9,600.

Nonprofit employers of all sizes are eligible for the credit, and there’s no limit on the number of qualified veterans for whom you can claim it. The WOTC is limited only by the amount of your organization’s Social Security tax owed on the wages paid to all employees for the tax period in which you claim the credit.

Contact us for help

Note that newly hired veterans must work at least 120 hours before you can request the WOTC. Once you have a certification, you can claim the credit against your Social Security tax liability by filing Form 5884-C. Be sure to file the form after you’ve filed the related employment tax return for the relevant tax period.

For help with tax forms and questions about the WOTC contact us. We can help ensure your nonprofit receives all payroll tax credits for which it qualifies.

© 2022

Filed under: General by OSA&C Tuesday, September 20th, 2022
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Do you think about your not-for-profit’s annual report as a yearly obligation or even an unpleasant chore? If so, your annual report likely isn’t much fun to read — and you’re missing a chance to attract and engage critical audiences. Instead, embrace this opportunity to communicate the good your organization does and promote your mission and programs. Here’s how to write an annual report that will keep readers’ attention.

Tackle first things first

Most nonprofit annual reports consist of several standard sections, starting with a Chair of the Board’s letter. This executive summary needs to provide an overview of your nonprofit’s activities, accomplishments and anything else worth highlighting. It should be direct and to the point, but also reflect the chair’s personality.

Financial information is another essential section. This generally is subdivided into three sections:

1. Independent auditor’s report. This CPA report states whether your nonprofit’s financial statements have been prepared in accordance with Generally Accepted Accounting Principles.
2. Financial statements. Data should include a Statement of Financial Position (assets, liabilities and net asset categories as of the last day of the fiscal year), Statement of Activities (revenues earned and expenses incurred during the year) and Statement of Cash Flows (changes, sources and uses of cash for the year).
3. Footnotes. These expand on financial statement items regarding subjects such as leasing arrangements and debt.

You can make your financial statements easier to understand by creating an abbreviated version with a synopsis that quickly communicates your overall financial situation. Whenever possible, use simple graphs, diagrams and other visual aids to highlight specific points.

Describe your work with words and images

A “Description” is the other major section in a typical nonprofit annual report. This is where you can — and should — get creative. Explain your organization’s mission, goals and strategies for reaching those goals. Then, describe who benefits from your organization’s services and how your services contribute to the community.

To do justice to this work, include client testimonials where those you’ve helped tell the story in a personal way. Or create a timeline that enables readers to see the progress you’ve made toward a long-term goal such as establishing an endowment or constructing a new facility. Your annual report should be as visually pleasing as it is interesting to read. Include engaging photos, arresting graphics and creative layouts.

Reward your audience for reading

The audience for your annual report may be larger than you think. Ensure it offers something to grab the attention of donors and other supporters, clients, community members, charity watchdog groups and the media. Otherwise, you could be wasting an important opportunity. If you have any questions you can reach out to Online Stewardship or our parent company, Patrick & Raines. You can reach out by calling (904) 396-5400 or emailing Lynn@onlinestewardship.com or office@CPAsite.com.

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Filed under: General by OSA&C Tuesday, September 6th, 2022
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A new generation is spearheading social movements, volunteering for causes and making charitable donations. If your organization isn’t paying attention to Generation Z — the youngest cohort of adults — you may miss out on its energy and support. This demographic is particularly motivated by social justice issues and is financially generous. Here’s how to engage these individuals.

Pursuing social impact

The oldest members of Generation Z typically are in college or the early stages of careers. Nevertheless, according to a LendingTree survey their average annual donation is $553 per year — compared with $574 for all donors. They’re the most likely age group to participate in crowdfunding drives and the online fundraiser Giving Tuesday. They may be more driven to pursue social impact than earlier generations at their age and tend to be hyperaware of what’s going on both in the world and their own communities.

As digital natives immersed in social media, Gen Zers make good peer-to-peer fundraisers. You might be able to harness the energy of this generation by sponsoring fun runs and similar events that require participants to solicit funds from friends and family members. Also, many in this demographic volunteer or perform paid work for more politically oriented causes that they see affecting their own lives, such as gun control, climate change and racial inequality.

Reaching young adults

To reach Gen Z, forget Facebook and even Twitter. Teens and young adults favor platforms such as Snapchat, Instagram and TikTok, so you may need to develop different types of content for these more visual channels. The good news is that younger people tend to be more receptive to digital ads than their parents. But they expect outreach to be narrowly tailored to their interests, so be sure you rely on good data.

Members of Gen Z usually want to be more involved in charitable causes than earlier generations. They may not be satisfied with making one-time donations to nonprofits they barely know. To provide young adults with hands-on roles, create formal volunteer programs and consider setting up a junior board of directors.

Enlist their support

As donors, Gen Zers have substantially increased their charitable giving just in the past couple of years. If you enlist this demographic’s support for your cause (usually via digital channels), they can become an invaluable — and long-lived — part of your nonprofit’s support network. If you have any questions you can reach out to the P&R team by calling (904) 396-5400 or emailing Lynn@onlinestewardship.com or office@CPAsite.com.

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Filed under: General by OSA&C Tuesday, August 23rd, 2022
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No not-for-profit wants to turn down donations — particularly if they’re large. Nevertheless, you need to consider the source of gifts and potentially refuse those attached to controversial donors. Bad publicity, particularly if it hits social media and goes viral, can be far more expensive for your organization in the long run.

A look at both sides

What’s the risk of accepting a possibly tainted donation? Some of your nonprofit’s most loyal and longstanding supporters may be strongly opposed to it and reduce, or even end, their donations. And any uproar or backlash could divert attention from your positive accomplishments and leave behind reputational damage that takes years to repair.

Arguments can be made to accept controversial donations, though. After all, not every donor is an angel or operating from purely altruistic motives. Even Mother Teresa purportedly accepted donations from dictators and crooks, arguing that the good the money could do outweighed its origins.

She’s not alone in believing that tainted money is better spent on charitable purposes than, say, another yacht or mansion for the donor. Money given to a nonprofit, goes the argument, generally benefits society as a whole, particularly when the recipient does social welfare work. And, if you turn away funds you need, you could have to cut programs, dip into your endowment or sell other assets.

Formal guidelines

These decisions are more easily rendered when you’re working from a formalized framework. Rather than making decisions on the fly, write and follow a gift acceptance policy. Begin by establishing a “Know Your Donor” process for prospective donations above a certain amount. Some preliminary due diligence can help ensure your donor’s past or current actions don’t conflict with your mission.

Also take some time to think through potential scenarios. Most organizations refuse donations of stolen funds or funds generated by illegal means — but what about donations that are “clean” but obviously given to further the donor’s public relations? What about anonymous gifts? Some nonprofits find them too risky.

If you accept a donation from a controversial donor, you’ll likely need to explain your decision. So, develop communications guidelines, as well. Determine who will speak for your organization, which communication channels will be used and how much information will be shared, with a preference for transparency.

Be prepared to stop

Finally, realize that mistakes happen. Identify a process for dealing with gifts that turn out to be controversial after receipt. You should evaluate these gifts through an ethical prism that takes into account your nonprofit’s values and the perspectives of your stakeholders. If you need any assistance contact our parent company Patrick & Raines CPAs. You can reach us by calling (904) 396-5400 or emailing Lynn@onlinestewardship.com or office@CPAsite.com.

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Filed under: General by OSA&C Tuesday, August 9th, 2022
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Recently, the Association of Certified Fraud Examiners (ACFE) published its biannual Report to the Nations: 2022 Global Study on Occupational Fraud and Abuse. Of all the types of organizations surveyed by the ACFE, not-for-profits actually were the least likely to experience occupational fraud. However, nonprofits also are generally the least likely to be able to afford fraud losses. So it’s important for your organization’s leaders to understand the risks and take steps to prevent criminal activity.

Provide adequate oversight

According to the ACFE report, the median loss for defrauded nonprofits is $60,000, considerably less than the $120,000 median for all organizations and the $138,000 median for government agencies. However, nonprofits generally have much less to lose than, say, the average bank, manufacturer or taxpayer-supported agency.

Indeed, it’s a general lack of financial and staff resources — in addition to less vigorous oversight and enforcement of internal controls — that may make nonprofits fertile ground for fraud. Although many try to foster a trusting, familial culture, this can lead to risky lapses. Managers may, for example, rubber-stamp expense reimbursement reports, neglect to segregate accounting duties or allow unproven staffers or volunteers to accept cash donations.

Implement internal controls

The ACFE has found that nonprofits adhere at lower rates than for-profit companies to internal controls such as surprise audits, formal fraud risk assessments, management review and internal audits. In fact, nonprofits are the most likely type of organization to override or ignore internal controls.

Some of these controls can be costly, of course. But not all effective antifraud measures are expensive. Adopting a code of conduct is closely associated with lower fraud losses in all types of organizations. Other inexpensive initiatives associated with lower fraud losses include employee fraud training, mandatory vacations and strong management oversight.

Launch a fraud hotline

If you decide to spend on fraud detection and prevention, confidential hotlines have consistently proven their weight in gold. According to the ACFE, organizations of all types with anonymous hotlines or web forms made available to staffers and other stakeholders cut fraud losses by 50% or more.

It’s particularly important to communicate the private nature of a hotline to employees so they feel free to report suspicions without fear of reprisal. To help ensure anonymity and enable whistleblowers to report from home, contract with an outside service that can provide 24/7 monitoring.

Commit to enforce

Although you can’t control the thoughts of criminally minded employees, you can make occupational fraud difficult to commit. This requires a commitment from executives and managers to enforce controls and provide reasonable oversight. Contact our parent company, Patrick & Raines CPAs, for help evaluating your controls and for recommendation of effective fraud-prevention tools. You can reach the P&R team by calling (904) 396-5400 or emailing Lynn@onlinestewardship.com or office@CPAsite.com.

© 2022

Filed under: General by OSA&C Tuesday, July 26th, 2022
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When the COVID-19 pandemic forced lockdowns in Spring 2020, many not-for-profit organizations initially resisted laying off employees. Retention tax credits provided under the CARES Act helped. But nonprofits that are still struggling may think they have no choice but to cut compensation expenses, especially as high inflation increases the cost of other expenses.

However, your organization may still have alternatives to terminating employees. Here are some ideas for organization-wide cost cutting.

Staffers and office expenses

Before you lay off workers, first consider reducing hours or suspending employee benefits. You might trim wages or management-level salaries. And, allowing employees to work remotely may lead to lower overhead, particularly if you’re able to break your office lease or at least shrink your space.

Approach your landlord about renegotiating, especially if you’re nearing the end of the lease’s term. The market for commercial real estate has faltered in the wake of the pandemic, so landlords may be more amenable than they normally would be to rent reductions, abatements or holidays.

If your organization has more than one site, you might want to consolidate in a single location and close the others. If you can’t escape the rent obligations for the shuttered space, you could at least eliminate the associated overhead, including insurance. If your nonprofit owns its facilities, look into selling, downsizing or renting out unused space.

Negotiating with vendors

Also try renegotiating with vendors. If you shifted to greater remote work, for example, you’ll have less need for property maintenance and food services. Check for penalty or fee provisions in your contracts before terminating agreements, though.

It also could pay to join forces with other organizations, nonprofit or not, to increase your buying power. Or you could consolidate more purchases of goods and services with fewer vendors to obtain discounts. Don’t hesitate to be assertive in the pursuit of lower prices. It can’t hurt to ask your vendors to offer nonprofit discounts or to donate their services.

Make virtual permanent

Many nonprofits have experienced significant decreases in expenses for travel, meetings and events as gatherings were forced into virtual spaces. As with remote work, you may have been surprised at how well virtual meetings and fundraisers have worked. In fact, some report their virtual events have been more lucrative than past in-person events.

For example, one organization canceled its annual luncheon and instead simply requested donations from the usual attendees. It resulted in a substantially larger haul than a typical event would have. Other nonprofits have been able to attract higher numbers to virtual runs or walks, where participants perform the activity on their own at a day and time that’s convenient for them.

Crunch time

Obviously, no nonprofit wants to lay off good employees. If your organization is in a financial crunch, contact our parent company, Patrick & Raines CPAs. We can review your budget, revenues and assets and help you make the best decisions about how to proceed. You can reach the P&R team by calling (904) 396-5400 or emailing Lynn@onlinestewardship.com or office@CPAsite.com.

© 2022

Filed under: General by OSA&C Tuesday, July 12th, 2022
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