Functional expense allocations and the program expense ratio are crucial aspects of financial transparency for nonprofits. Learn why properly allocating expenses into categories like program services, management, and fundraising not only provides a clear financial picture but also significantly impacts the organization’s public image, fundraising potential, and IRS compliance.
The fundamental purpose of board minutes is similar across different types of organizations; however, there are nuances that differentiate how for-profit and nonprofit boards approach their creation and maintenance. Understand these differences and the best practices that can significantly enhance the organizational governance and integrity.
Tax-exempt organizations operating on a calendar year-end (December 31) are reminded to prepare their Form 990-series returns or secure an extension before the May 15th deadline. Timely submission is essential to uphold tax-exempt status and ensure compliance with IRS regulations.
Over $70 billion in unclaimed property is held by states across the U.S., affecting one in seven Americans, according to NAUPA. Individuals, businesses, and nonprofits can reclaim these assets, ranging from uncashed paychecks to dormant accounts, by searching the NAUPA website or state-specific unclaimed property databases.
Learn about the temporary e-filing delay for Forms 990-T and 1120-POL until March 17, 2024 which impacts returns with due dates falling between January 15, 2024, and March 15, 2024.
A third quarter not-for-profit industry update sees revenue growth and new opportunities in some segments, like museums, parks, and zoos, and challenges for membership and religious organizations. Resilience and innovation are key to navigating a changing nonprofit landscape.
Check fraud is on the rise. An online banking feature called positive pay is an effective tool to prevent or minimize check tampering, and all nonprofits can use it.
Nonprofit organizations can still qualify for the employee retention tax credit from 2020 and 2021 if they meet certain eligibility rules.
As the first quarter of 2023 wraps up, nonprofits are experiencing lower donations. The economy and consumer spending remain top leading indicators for the segments Museums, Parks, and Zoos, Private Schools, and Membership Associations.
Small to medium-size nonprofits have several responsibilities to maintain their tax-exempt status and may be unaware of some of the activities that can jeopardize it. The IRS has recently released many resources to help.
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