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.
Summertime is a great time for nonprofit fundraisers that sustain organizations throughout the year. Of course, this year looks a little different for a lot of folks. Rest assured, if you’re relying on a big event but don’t yet feel comfortable hosting it, you’ve got options. A lot of organizations hold auctions, which are a relatively straightforward way to fundraise. And, while the fanfare of an auctioneer is fun, it isn’t necessary for a great event.
When the economy begins to struggle or donations remain otherwise low, many nonprofits choose to work together. We’re seeing this in higher numbers now, as resources are more scarce or spread apart and the future remains somewhat uncertain. For nonprofits, who are already experts at making due with limited resources, collaboration is a natural (and helpful!) process. No matter your industry, chances are that you could benefit from some thoughtful, mutually beneficial collaboration.
For many nonprofit organizations, Covid-19 has altered the way business is done. We're living in a strange new time of generosity--folks eager to help out where they can. But, as unemployment increases and the coronavirus haze wears off as cities reopen, many nonprofits wonder if and how they’ll survive. As people return to a version of life as usual, nonprofits should plan to take an active approach to staying relevant and reminding people that the need for donations is as strong (or even stronger) than ever.