Stress Testing the Charitable Organization - As financial leader of the organization, heads usually turn to the executive director when this concern is voiced at board and management meetings.If the ED is equipped with good financial knowledge and proactive about identifying and addressing weaknesses in advance, the organization is in a stronger position to withstand financial challenges before they reach a crisis stage. (Planned Giving Design Center)
Annual Filing and Forms - Exempt organizations are required to file annual returns, although there are exceptions. If an organization does not file a required return or files late, the IRS may assess penalties. In addition, if an organization does not file as required for three consecutive years, it automatically loses its tax-exempt status.
Financial Transparency - Earning trust through financial transparency and accountability goes beyond what the law requires, but let’s start there: Nonprofits are required to disclose certain financial information to the public upon request; board members have access to financial information in order to fulfill their fiduciary duty to the nonprofit. (National Council of Nonprofits)
How to find fiscal sponsors
About Form 990 - Tax-exempt organizations, nonexempt charitable trusts, and section 527 political organizations file this form to provide the IRS with the information required by section 6033. View the series of IRS documents for Forms 990, 990-EZ, and 990-PF, their schedules and instructions: Current Form 990 Series - Forms and Instructions. (IRS)
The Affordable Care Act requires employers to report the cost of coverage under an employer-sponsored group health plan. Reporting the cost of health care coverage on the Form W-2 does not mean that the coverage is taxable. Learn more from this resource from the IRS.
Form W-2 Reporting of Employer-Sponsored Health Coverage
Four Things Every Nonprofit Contracting with Government Should Do - "The White House Office of Management and Budget (OMB) rules known as the Uniform Guidance went into effect at the end of 2014, streamlining the rules governing administrative requirements, cost principles, and audit requirements on federal awards, removing inconsistencies in the old circulars.
Donors, lawmakers, and other stakeholders are looking at your nonprofit’s "program efficiency ratio" (PER) as an indicator of good stewardship. If your organization has a low ratio, it can indicate that you devote too many resources to fundraising and management rather than program activities. However, the ratio doesn't paint the entire picture. Get tips from CPA Dennis Walsh on how to keep from being judged unfairly.
How Much Profit Does a Nonprofit Need? identifies the key variables and explains how any organization can calculate the minimum profit it needs to prevent slow, steady erosion of the quality of its output. (Nonprofit Quarterly)
Many nonprofits have been wondering how to claim the small employer health care tax credit. Get answers from the IRS website--Small Business Health Care Tax Credit Questions and Answers: How to Claim the Credit (en español).