Financial Management

Instructions for IRS Form 1099-MISC and 1099-NEC, used in reporting Miscellaneous Income and Nonemployee Compensation. (IRS)

Indicators of Financial Crisis - "We all know that a stressed organization operating with the best of intentions can still make ill-advised decisions, especially in the financial arena – and the results can be damaging. We also know that sometimes seeing a financial crisis is difficult. We want to make it easier so you can recover faster. And we want you to see the challenges before you end up in crisis." (The Foraker Group)

Implementing Your Backup Strategy- "Ensuring that your critical data is backed up regularly is essential for keeping your organization up and running, no matter what happens. This article will help you implement an effective backup strategy, with tips on what to back up, and how to choose local and remote backup solutions." (TechSoup Global)

Comprehensive fiscal sponsorship is also known as "Model A" or "direct project" sponsorship and refers to situations where an individual or loose group of individuals approaches the sponsor to become the sponsor's employee or volunteer. (See Fiscal Sponsorship Models Summary to compare other models.)

This sample statement defines self-dealing transactions and describes the appropriate approval process and why prohibition of private inurement is important for all organizations.

Sample Statement for Self-Dealing Transactions

Employer's Supplemental Tax Guide (Publication 15-A) offers guidance on classification of employees, compensation, tax withholding, and related matters. (IRS)

IRS Publication 526 explains how to claim a deduction for charitable contributions and discusses: organizations qualified to receive deductions, the types of contributions that can be deducted, how much can be deducted, what records to keep, and how to report deductions. (IRS)

The number of staff at a nonprofit determines which provisions of the Affordable Care Act (ACA) it must follow. Specifically, whether your nonprofit has 50 or more "full-time equivalent employees" (as defined in the ACA) dictates which version of Form 1095 you must complete and determines eligibility to apply for a "small employer health care tax credit." 

What is fiscal sponsorship? How do I find a fiscal sponsor? - "Fiscal sponsorship is a formal arrangement in which a 501(c)(3) public charity sponsors a project that may lack exempt status. This alternative to starting your own nonprofit allows you to seek grants and solicit tax-deductible donations under your sponsor's exempt status. [...] Since most grantmakers give to organizations, not individuals, fiscal sponsorship may help you qualify for more funding opportunities.

"An effective recordkeeping system enables an organization to monitor the progress of programs and aid in the preparation of financial statements and returns. If an organization does not keep required records, it may be unable to show it qualifies for exemption. Thus, the organization may lose its tax-exempt status. In addition, an organization may be unable to complete its returns accurately and may be subject to penalties."