4Thought Blog

4thought graphic - blog 2020

Is Your Nonprofit Altering Operations? Watch Out for Unrelated Business Income Tax

Posted by Concannon Miller on Tue, Jul 14, 2020

During these financially challenging times, many nonprofit organizations have had to get creative to raise adequate revenue to sustain operations.

But new activities, however well-intentioned, can lead to tax trouble. Your nonprofit risks exposure to the unrelated business income tax if it operates outside its usual charitable scope.

Here's how to avoid unwanted tax exposure.

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Topics: Nonprofit Organizations

7 Fundraising Tips for Nonprofits During the Coronavirus Pandemic

Posted by Concannon Miller on Tue, Jun 16, 2020

Fundraising is the lifeblood of virtually every charitable organization. However, the novel coronavirus (COVID-19) has brought the fundraising efforts of many nonprofits to a virtual standstill. This is particularly true if your nonprofit's mission is unrelated to human health and services or other causes related to the pandemic.

Maybe you've operated in challenging circumstances before — for example, during the recession following 2008's financial collapse. Even so, high unemployment and general uncertainty about the severity and longevity of the COVID-19 crisis is likely to make this time even more difficult. Here are some ideas for navigating the greatest obstacles:

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Topics: Nonprofit Organizations, 2020 Coronavirus

Coronavirus Assistance for Nonprofits: 7 Benefits to Consider

Posted by Concannon Miller on Thu, May 14, 2020

The recent Coronavirus Aid, Relief, and Economic Security (CARES) Act provides relief to employers struggling to stay afloat during the novel coronavirus (COVID-19) pandemic.

The nonprofit sector is no exception. In fact, some provisions in the new law are specifically tied to charities.

Following is a brief summary of seven key benefits for nonprofit employers and supporters.

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Topics: Nonprofit Organizations, 2020 Coronavirus

Has Your Nonprofit’s Mission Changed? Don’t Risk Your Tax-Exempt Status

Posted by Concannon Miller on Tue, Feb 18, 2020

If your nonprofit has been active for many years, it probably has experienced significant change — it may even have drifted from its initial mission. There are many possible reasons for this. Perhaps the underlying issues your organization addresses have evolved or you've decided there are more pressing issues that deserve your attention.

Or maybe a larger funding base or new supporters have encouraged you to think bigger and expand your mission's scope. It's possible that other nonprofits in your community have folded and you've assumed responsibility for their clients.

It's common, even healthy, for long-running nonprofits to experience these changes. However, you can't let your mission drift too far without formalizing the shift. Otherwise, you might risk your organization's tax-exempt status. If you've been dragging your feet, now's the time to act.

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Topics: Nonprofit Organizations

What to Look for in a Nonprofit CPA Auditor (Video)

Posted by Cary Giacalone on Thu, Dec 19, 2019

Your nonprofit CPA auditor should help you assess opportunities, risks and financing opportunities.

They should have connections in the community and a good relationship with your board so your organization can be on solid financial footing.

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Topics: Nonprofit Organizations

2019 Charitable Contributions: The Tax Reform Deduction Rules to Know

Posted by Concannon Miller on Tue, Dec 3, 2019

Do you plan on making contributions to charity this year? If you're in a giving mood, you may be rewarded with sizeable charitable deductions on your tax return.

But the tax law is fraught with numerous twists and turns, so you must be careful to navigate the rules.

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Topics: Individual tax planning, Nonprofit Organizations

Uncertain Tax Position Disclosures: Is Your Nonprofit in Compliance?

Posted by Concannon Miller on Tue, Sep 24, 2019

As a nonprofit, tax-exempt organization, you might think the subject of “uncertain tax positions” doesn’t apply to you.

Think again. Some of the basics of your operations, including your tax-exempt status, could create uncertain tax positions that trigger critical reporting obligations.

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Topics: Nonprofit Organizations

7 Best Financial Practices for Nonprofit Organizations

Posted by Cary Giacalone on Thu, Jun 13, 2019

Nonprofit leaders have a lot of important duties to accomplish. Right behind following your mission should be managing your finances – without best practices in force, nonprofit leaders could make some costly missteps.

See our best financial practices for nonprofit organizations below. And these are not just for the CEO, CFO and other executive officers – nonprofit board members have fiduciary responsibilities to their organizations, including having a deep understanding of the finances.

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Topics: Nonprofit Organizations

Planned Gifts can be a Major Boon for Nonprofits

Posted by Concannon Miller on Thu, May 23, 2019

Is your nonprofit organization pursuing planned gifts? It should be. Research suggests that the average planned gift in the United States falls between $35,000 and $70,000 -- and the amount may increase with more Baby Boomers moving into retirement. Yet many nonprofits, especially small and medium-sized organizations, lack formal planned giving programs.

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Topics: Individual tax planning, Nonprofit Organizations

Nonprofits: Audits are Critical to Your Organizational Sustainability

Posted by Concannon Miller on Thu, Apr 11, 2019

Audits have become more important due to increased public and government scrutiny of nonprofit organizations, their management and their boards.

Audits not only provide you with a fair assessment of your organization's financial health, but also can reveal vulnerabilities such as weak internal controls, insufficient cash reserves and poor investment policies. Perhaps most important, regular audits reassure your donors, members and other stakeholders that you run a fit organization.

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Topics: Nonprofit Organizations

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