When you hear the word nonprofit, what comes to mind? If you work for a nonprofit business, you’ve probably figured it out. But for many others, the very phrase spurs confusion. If a nonprofit is a business, shouldn’t they seek to make a profit? And how can a business of any kind function in the absence of money? What exactly qualifies as non-profit? Can a nonprofit make a little bit of money and still qualify for tax exempt status?
You may be familiar with journalism and probably even nonprofit organizations, but, when you combine the two, they become another thing entirely. While nonprofit journalism has been around for quite some time, it doesn’t, ironically, get a lot of airtime. That is, nonprofit journalism is all around you, but you might not even know it. You’ve probably interacted with media put forth by institutions practicing as nonprofit journalists--they’re actually everywhere! Big and little, far and wide, nonprofits and journalism are a natural fit because they combine passionate people with refined skills, creativity, and the desire to work hard under a variety of circumstances.
You have many talented individuals who help you work towards your nonprofit’s mission. When it comes to hiring contractors and employees, you pay both of them to conduct the work, so does that mean the IRS views both in the same light? Actually, there is a big difference between the two in the government’s eyes. Specifically, the IRS states that, “The general rule is that an individual is an independent contractor if the payer has the right to control or direct only the result of the work and not what will be done and how it will be done.
Although nonprofit organizations don’t aim to make anyone rich, they rely upon being able to effectively fundraise. Nonprofits must pay staff member salaries, operational expenses, and fund the projects that allow them to provide the valuable services they give to the community. And, even when the economy is thriving, convincing people to give their hard-earned dollars to nonprofits can be a challenge. Fundraising for nonprofits doesn’t have to be complicated, but it does need to be consistent, thoughtful, and even fun!
Throughout 2020, you’ve probably had to reevaluate your nonprofit’s budget. The unprecedented challenges that the global pandemic has brought to light have forced many small to mid-sized nonprofit organizations to operate on an even tighter budget than usual. This makes it a perfect time for your organization to refresh your understanding of operating budgets in order to re-strategize your own to make the most of it. Here at Jitasa, we help executive and financial directors at nonprofit organizations to organize their finances for more efficient use.