Before the United States was thrust into a global health pandemic, you may have been planning to meet with your accountant. For business or personal reasons, you’d likely begun gathering documents, double-checking numbers, and searching your records for those last expenses. And suddenly, the world became an unfamiliar place. The tax appointment you’d scheduled six months ago was up in the air. If you had a good nonprofit accountant, they probably reached out with you to plan.
Tax Day, even when it moves, still carries with it a sense of impending doom--although it shouldn’t, if you’re following the rules. There’s a lot of build up before tax returns are due, and after, it can be easy to sit back and forget about this important part of your nonprofit strategy. Sadly, the need for sound financial practices does not end on July 15. If you’re feeling the need to put your financials on the backburner, resist that urge--here are a few ways you can set yourself up for success after Tax Day.
Like any company, nonprofits require excellent leadership, which is especially important during times of immense change. Strong leaders possess the ability to guide organizations through good times and bad, no matter their experience. In fact, so little of leadership is actually about whether or not a leader has been there before. Good leaders do share some simple characteristics though, no matter where they’ve come from. You can recognize a good leader by looking for a few things--make sure they:
If you’re working for a nonprofit, there are some best practices you should be following to ensure your accounting needs are not only met, but maximized. Despite their diligence, nonprofit organizations are often the victims of accounting mistakes or fraud. By implementing a few best practices, you can ensure that your organization runs smoothly and efficiently. Specialize Not all accountants and accounting software are created equally, so make sure you’re dealing with professionals who know and excel in the nonprofit space.
Not many people look forward to tax season. While individuals and companies need to pay taxes each year using complicated forms, nonprofits usually don’t. Because of their 501(c)(3) status, nonprofit organizations are exempt from these payments each year. However, this doesn’t mean tax season is easy for these organizations. Nonprofits still need to file a Form 990 in order to maintain their exempt status. The Form 990 is where organizations like yours record relevant financial information for the IRS.