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.
When the economy struggles, everyone is on high alert for fraud. One sweep through any social media app points it out--neighbors reporting children wandering around, delivery vans being called in for suspicious activity. Of course, the cause for concern doesn’t come from nowhere--when people face fear of joblessness or loss of homes, there can be an increase in all types of fraud. Though nonprofit organizations may feel as though they’re exempt because of the nature of the service they perform, they’re at risk for fraud too.
Nonprofit organizations can be especially prone to scams, both internally and externally. Because they tend to be filled with do-gooder types, they’re often taken advantage of by people who perceive them to be easy targets. They’re frequently also small, making them potentially easy targets for people who take advantage of the nonprofit mission to create good in the communities they provide service to. Fraud risk in nonprofits A typical organization loses around 5 percent of annual revenue in fraud.