One of the most important responsibilities of a nonprofit board is fiscal oversight. Yet many board members remain unclear about what exactly that means. Nonprofit Risk Management Center's webinar, Fiscal Oversight, Risk and the Nonprofit Board, explores the board’s role in providing fiscal oversight and risk oversight. Learn how to inspire your board to strengthen its governance practices.
Audits are getting more expensive. And it's not just the auditors whose hours are increasing. Staff's time on the audit has expanded as well. How can you ease the burden?
© North Carolina Center for Nonprofit Organizations, Inc. From Common Ground, a publication of the North Carolina Center for Nonprofits, www.ncnonprofits.org.
Tax on Unrelated Business Income of Exempt Organizations - An exempt organization is not taxed on its income from an activity substantially related to the charitable, educational, or other purpose that is the basis for the organization's exemption. (IRS)
Overhead or administrative spending has become a way that many funders measure how well a grantee is doing, but a growing number of funders and nonprofits are finding that it does not paint an accurate picture of a nonprofit’s financial health, sustainability, or overall effectiveness.
An audit committee is considered a best practice for nonprofits. It helps the governing board perform its fiduciary and financial oversight roles, reduce risk, and maintain donor confidence.
© North Carolina Center for Nonprofit Organizations, Inc. From Common Ground, a publication of the North Carolina Center for Nonprofits, www.ncnonprofits.org.
Additional resource:
Tracking volunteer time: sounds like another chore? Actually it can help you meet match requirements, improve your financial statement presentations, and reduce liability. This article explains why and how to include volunteer time in your budgets and financials. (Blue Avocado)
Tracking Volunteer Time to Boost Your Bottom Line: A Complete Accounting Guide
Healthy nonprofit organizations employ financial management practices that build stability and flexibility both today and in the future. In Nonprofit Finance: 12 Golden Rules, Propel Nonprofits sets out the twelve golden rules for nonprofit finance, including budgeting, diverse funding sources, and interdependence.
An Employer Identification Number (EIN) is also known as a Federal Tax Identification Number, and is used to identify a business entity. It is a nine digit number that the IRS assigns to organizations in the following format: 00-0000000 (en español).
Top 5 Missteps to Endowment Management under UPMIFA - "UPMIFA completely overhauled the rules for managing donor-restricted endowments and the accounting standards were also updated in response. However, many organizations have still not realized that the rules have changed; they have continued to follow the principles of the old rules and may not even realize that they are out of compliance." (PBMares, 2021)
Your organization may be growing and need extra hands on deck to maintain the recordkeeping. Or, maybe it's small and needs external help to manage finances. Either way, working with outsourced accountants may benefit your operations and save you money.
© North Carolina Center for Nonprofit Organizations, Inc. From Common Ground, a publication of the North Carolina Center for Nonprofits, www.ncnonprofits.org.