The Nasdaq stock exchange will soon require all listed companies to publicly disclose board-level diversity statistics and have (or explain why they don’t have) diverse directors. While this requirement only applies to Nasdaq-listed companies, it might be a good idea for all organizations to increase board diversity, including nonprofits. (more…)
Nonprofit Insights
NextFraud Prevention - How to Establish a Whistleblower Hotline
According to the 2022 Report to the Nations, published by the Association of Certified Fraud Examiners (ACFE), the most common way that internal fraud is detected is via anonymous tips. These accounted for 42 percent of the frauds that were uncovered, compared to just 16 percent of frauds that were uncovered in an internal audit and 12 percent that were uncovered in a management review. (more…)
Budgeting for Nonprofits - A Step-by-Step Guide to Creating a Budget
One of the biggest keys to financial stability for nonprofit organizations is budgeting. Creating and approving an annual budget is fundamental to financially managing a nonprofit.
The annual budget will serve as a blueprint for your organization’s financial activity in the coming year. Because circumstances will change throughout the year, your budget must be flexible enough to change with them. In this sense, your budget is a guide that can help you plan for the financial future, as well as assess your current financial health. (more…)
What Form 990 Can Tell Donors and Watchdogs
IRS Form 990 includes specific information that helps donors and watchdogs assess and monitor nonprofit organizations. In a single document, it provides a snapshot of the financial health, governance, and operations of a nonprofit. (more…)
Valuing and Substantiating Non-Cash Gifts - What Your Nonprofit Needs to Know
It’s not uncommon for nonprofit organizations to receive donations of tangible property from supporters in addition to cash contributions. Special rules apply when valuing such property and providing donors with the right kinds of documentation to substantiate deductions claimed for these donations.
Here are some common questions nonprofits have about valuing and substantiating non-cash gifts. (more…)
Nonprofit Executive Compensation - Don’t Run Afoul of IRS Regulations
Executive compensation at nonprofits is a hot-button issue right now as the IRS has begun ramping up oversight and enforcement. This is partly in response to some high-profile instances where executives working at nonprofit organizations received excessive salaries in relation to the size of the organization or the region of the country. (more…)
Three Steps to Preventing Excess Executive Compensation
The National Council of Nonprofits advises nonprofit organizations to take the following steps to help ensure that executive compensation isn’t excessive: (more…)
The Excess Nonprofit Compensation Tax
Section 4960 of the Tax Cuts and Jobs Act added an excise tax on excess compensation paid to certain executives of nonprofit organizations. The tax is imposed at the corporate tax rate of 21 percent on remuneration paid to a covered employee that exceeds $1 million, as well as excess parachute payments to covered executives. (more…)
Cryptocurrency Contributions in the Nonprofit World
By Emilie Thell, CPA, Manager, Assurance & Advisory
Following the onset of the COVID-19 pandemic, contributions to nonprofits have continued to reach record levels year-over-year. Considering the increasing popularity of crypto, it’s not surprising that nonprofits are seeing an increase in crypto contributions as well.
Fidelity Charitable reports they accepted more than $330 million in contributed crypto for philanthropic giving in 2021, up from $28 million in 2020, and crypto accounted for 66% of their contributions during the year. The Giving Block reports accepting almost $70 million in contributed crypto in 2021 compared to just $4 million in 2020. (more…)