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
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)
How to find fiscal sponsors
General Operating Support Action Guide - A report inspired by a spirited discussion on GEOList among GEO members about general operating support, its limitations and its advantages. (Grantmakers for Effective Organizations)
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)
How To Develop Your Nonprofit Operating Reserve examines common factors that organizations should take into account when considering how much to set aside for their operating reserve. (npENGAGE)
IRS Publication 1771, Charitable Contributions - Substantiation and Disclosure Requirements explains the federal tax law for organizations such as charities and churches that receive tax-deductible, charitable contributions and for taxpayers who make contributions. It also discusses types of receipts (written versus e-mail) and thresholds. (IRS)
In many nonprofits, a time comes when the question arises: should the organization accept personal loans from board members? Although this article does not try to answer that question, it does outline some of the choices in how such loans can be made and can be used as a starting point for discussion with your board or personal financial advisor. (Blue Avocado)
Loans From Nonprofit Board Members