As board members, we have twin responsibilities: to ensure that our organization is making efficient, appropriate use of funds and to ensure that we are reporting our overhead correctly. This article provides eight key ideas to know about overhead. (Blue Avocado)
A Board Member's Guide to Nonprofit Overhead
This NP Engage article walks through seven steps to developing a policy to manage the use and replenishment of reserve funds. Once an appropriate target amount has been determined for operating reserves, the board needs to draft a policy that establishes the fund and sets forth guidelines for using it.
7 Step Policy Guide to Nonprofit Operating Reserves
Understanding a nonprofit’s costs is necessary in order for charitable nonprofits to be financially sustainable. Rather than reporting artificially low costs, or ignoring what it really costs to deliver programs and services, the National Council of Nonprofits is encouraging all nonprofits and board members to model transparency of full costs. (National Council of Nonprofits)
#OwnYourOwnCosts
Read this article to learn exactly what "quid pro quo" donations are and how to correctly report them on your taxes.
© North Carolina Center for Nonprofit Organizations, Inc. From Common Ground, a publication of the North Carolina Center for Nonprofits, www.ncnonprofits.org.
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