If you pay a contractor, and you pay an employee, why aren’t they considered the same thing by the IRS? There is a difference, and 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.” For example, if your organization’s bathroom has a leak and you call a plumber to repair it, you would not issue a 1099 to the plumber (unless his fees are over $600 for the year).
It’s officially 2014, with any luck your nonprofit is revamped from the influx of donations in December, new budgets and goals, and a fresh team of volunteers resolving to dedicate more of their time this year. If you’re experiencing any of this, then you are off to a great year. However, you’re not out of the woods just yet. Remember that year end procedures are just around the corner. Now is the time to focus on the upcoming months and the tax deadlines they hold.
Part 2 of a 2 part series. Read Part 1 Last week we covered the components of an effective budget. To achieve a truly great budget for your nonprofit there a few processes you should focus on during its development. The first includes the human component of team building. To achieve a budget truly suited to your organization, be sure to include the necessary members of your organization. That means the budgeting process should be a team effort involving the board of directors, treasurer, finance committee, executive director, program directors, and fiscal staff.
Part 1 of a 2 part series Planning is a key area in all successful organizations. A budget is simply a planning tool that reflects an organization’s mission, program, and short term goals. It allows both management and your board of directors to adequately manage your organization’s financial health. A common best practice is to ensure an organization has an operating budget approved by its board of directors prior to the New Year.
Part 1 of a 2 part series. The Devil’s in the Details Few could debate the fact that writing a grant is strenuous and time consuming. Which is why receiving a letter rejecting your proposal can be so disheartening. It’s important to understand why grants get rejected prior to beginning your grant proposal. This two part blog series will provide you with a broad understanding of the common mistakes that result in grant rejection, and various tips to avoid them.