Jitasa Nonprofit Blog

Special Events: How They Affect Your Accounting & Your Donors

What is a special event? A special event tends to be larger and held annually. Your annual “Summer Golf Tournament” would be a good example of a special event. Galas, auctions, concerts, dinners, fitness challenges, contests, and sporting events can all be considered special events.  Whether you’re raising money or awareness of your mission, a special event can be an effective fundraising tool. You’ll raise money while interacting one on one with donors that share the passions of your organization.

Read More

The Snowball Effect of Payroll Taxes

Yesterday, Nonprofit Quarterly released an article titled, “The Worst Financial Decision Ever.” Within it, author Kate Barr addressed the avoidance of payroll taxes, and how putting off the IRS can lead you down a very dangerous road. The article begins with scare tactics, a medium we use frequently here at Jitasa to impart the severity of avoiding a situation. Kate states, “Recently, a member of our staff… met a nonprofit in Minnesota to help them assess their financial situation and create a stabilization plan.

Read More

Best Practice for IRS Form W9

January 31st has come and gone, and with it the deadline to file all 1099 forms. Ideally, this deadline was met with preparedness and ease for your organization. If it wasn’t…this is the blog for you. In it we discuss best practices for your 1099 filing, why obtaining and maintaining your vendor information is crucial, and how to prepare for success at the beginning of the year.  What is a 1099?

Read More

Contribution or Grant: Knowing the Difference

Simply, a contribution is a gift of funds, typically with no stipulations (though more on that later), frequently given by individuals. A grant is funds awarded as part of an application process, usually given by a foundation that sets specific rules for allocating money. Of course, there’s more to it than first meets the eye--knowing the difference between contributions and grants can be difficult because they share many of the same characteristics.

Read More

The What and Why of Functional Expenses

Functional Expenses Defined Functional expenses are synonymous with a number of accounting terms: class, buckets, cost centers, project codes, etc. Nonprofit organizations rely on functional expenses to identify and allocate organizational departments and programs. This process allows your nonprofit to distinguish the purpose of expenses and revenues in a complex way that accounts just don’t feature. An organization may have as few as three functional expenses, or more than thirty.

Read More