4Thought Blog

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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

Nonprofits: Track Unrelated Business Income to Avoid Tax Surprises

Posted by Andrea Brady on Tue, Mar 12, 2019

Taxes generally aren’t a top business concern for nonprofits, but if your organization has unrelated business income, it’s an issue even tax-exempt organizations have to keep track of.

What’s unrelated business? It involves a trade or business regularly carried on (including seasonally) by an organization, which isn't substantially related to the exercise or performance of its exempt purpose or function.

It’s an issue that’s been the subject of tax pursuits and even a lawsuit in Allentown. The city has recently started seeking business privilege taxes on nonprofit organizations’ profit generating activities. Good Shepherd Rehabilitation Network filed a lawsuit against the city about the tax pursuit.

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Topics: Nonprofit Organizations

Nonprofits: The New Fiscal Reporting Requirements for Year End 2018

Posted by Cary Giacalone on Thu, Jan 24, 2019

The Financial Accounting Standards Board is in the business of rulemaking, and there’s a new one nonprofits need to be aware of.

Back in 2016, FASB issued new guidance required for all nonprofit organizations with fiscal years ending after December 15, 2018. While the majority of the changes are purely cosmetic, understanding each will make your year-end financial reporting much easier.

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Topics: Nonprofit Organizations

Nonprofit Consolidation: The Pros and Cons and How to Do It

Posted by Concannon Miller on Thu, Dec 27, 2018

It doesn't happen often, but sometimes nonprofit organizations merge or are incorporated into one another.

For example, your nonprofit may be contemplating an acquisition of a smaller organization or perhaps you may be merged into a larger organization. In either event, this represents a significant change for managers both personally and professionally.

What causes nonprofit organizations to join forces? After all, groups generally start off with a distinct mandate and a commitment from its supporters. Of course, the reasons vary according to actual circumstances, but most mergers and acquisitions in the nonprofit world can be traced to one of these two reasons:

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Topics: Nonprofit Organizations

Nonprofits & Debt: What to Weigh Before Borrowing Money

Posted by Concannon Miller on Thu, Nov 1, 2018

Debt is an integral part of the strategic plans of many organizations, yet it has traditionally carried a stigma in the nonprofit industry. That view is changing, as more organizations borrow money for major capital purchases, new program funding — even to manage current cash flow.

But if you're hoping to borrow funds, know that not all nonprofits qualify. And even if you're able to find a lender, it takes prudent financial management and reliable donor support to pay back a loan.

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Topics: Nonprofit Organizations

Nonprofit Cash Management: Steps to Take Beyond the Annual Budget

Posted by Cary Giacalone on Tue, Oct 9, 2018

Managing limited resources and dodging between various compliance issues, nonprofit organizations are at greater disadvantage than their for-profit counterparts.

One way they can take on this challenge is with the proper monitoring of cash flow. Nonprofit entities use two reports to this end – the annual budget and a cash forecast.

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Topics: Nonprofit Organizations

12 Ways to Take Your Nonprofit to the Next Level

Posted by Concannon Miller on Thu, Aug 30, 2018

They say "No Pain, No Gain," and the expression applies to the life cycle of nonprofit organizations, as well as athletes who hit the gym, tennis court or golf course on weekends.

The point when the aches and growing pains of an organization begin are prompted less by age than by changes in leadership, size, budget or programming.

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Topics: Nonprofit Organizations

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