Not For Profit Archives » Checkbox Accounting

13Nov 2017 by William Simi No Comments

Are you ready for Giving Tuesday?

Studies have shown that many nonprofit organizations receive ⅓ or more of their annual contributions and giving during the month of December, and as much as 10% during the last three days of the year. That fact alone argues strongly for a well-coordinated year-end fundraising campaign. Since the launch of “Giving Tuesday”, nonprofits have another compelling reason to engage in year-end fundraising. Started in 2012 by New York’s 922nd Street Y organization, and supported by the UN Foundation, the “Giving Tuesday” movement has become a nationwide and global phenomenon. In just a few short years, the event has drawn huge interest and participation from individuals, for profit business, nonprofit organizations, schools and other community groups. In 2016, $168M was raised from over 98 countries (source). As stated by the organizers…

07Oct 2017 by William Simi No Comments

Year End Audit Preparation for Nonprofit Organizations

Not For Profit, Uncategorized

Holiday parties; family gatherings; golden turkey and all those other edible goodies - some things just make you look forward to this most wonderful time of the year. But you know it is looming. Out there, in the not too distant future. Waiting. Here’s the truth - your end of year audit isn’t going to disappear anytime soon. Taking the right steps now in getting prepared will not only save you time and money, but also a great deal of frustration. And whether or not you think of it as merely a necessary (or unnecessary) evil, be assured that the annual audit does in fact have its benefits. You see, an audit is a great opportunity for taking stock of your nonprofit organization; to come face to face with its…

16May 2017 by William Simi No Comments

Performance Measurement for Nonprofits

Business Advisory, Not For Profit, Uncategorized

There’s a great deal your nonprofit organization can glean from the operations of a successful for-profit business. In particular, learning to measure the performance of your nonprofit can help you shape your programs and improve your nonprofit’s overall effectiveness. Implementing a performance measurement program requires the development of an information feedback system. By this we mean a system that allows the management to identify, monitor, and take action to improve select KPIs (key performance indicators) that relate to the primary performance areas of the organization. In this post, we will discuss how to identify these performance areas for your nonprofit, and how to implement your own performance measurement system based on your mission statement. Don’t Try to Measure Everything at Once It’s important that you drill down into the performance…

06Apr 2017 by William Simi No Comments

How to achieve non-profit board diversity

Non Profit Principles: Steering You in the Right Direction, Not For Profit

The importance of a diverse board that represents the values of a non-profit’s stakeholders cannot be understated. Each individual board member should bring their own take on proceedings to the table, not to mention their own network of contacts and professional experience. What’s more, with a mix of cultural backgrounds and ages on your board, in addition to the requisite skills, you will have a non-profit that is well placed to manage risk, plan accordingly, take advantage of future opportunities, and engage with the wider community on a much deeper level. Why is non-profit board diversity important? By reflecting the diversity of the very community you are serving, your non-profit board will be in a position to make meaningful connections with prospective donors, partners, and policy makers. It’s also important…

09Mar 2017 by William Simi No Comments

The impact of Unrelated Business Taxable Income on your nonprofit

Compliance, Non Profit Principles: Steering You in the Right Direction, Not For Profit, Tax, Uncategorized

As a non-profit organization, you may be used to the idea that most of the income you generate through your organization’s activities is exempt from tax. But as every accountant knows, when it comes to the tax law, there are always exceptions to every exception and exemptions from every exemption. Or should we say exceptions to every exemption. Anyway, you get my meaning. In the case of non-profit organizations one of those exceptions to the general rule of tax exemption is something called “Unrelated Business Taxable Income”. Nonprofit boards and management should be aware that it is out there and that it might be applicable to their organization depending on the kind of activities it carries out. First, let’s get clear on a couple of acronyms that might otherwise be…

10Feb 2017 by William Simi No Comments

Form 990 – A Necessary Evil or a Great Opportunity?

Compliance, Not For Profit

It’s true of any organization, of any shape and size; once the year end rolls around, you will have some sort of tax-related filing to deal with. For nonprofits, it can be all too easy to overlook the importance of such filings, viewing it as a necessary evil - a dull and dry “must do” on the end of year checklist. However, one form in particular - the 990 - should be considered a truly great opportunity (more on that later). But first… What is the 990? For those of you unaware, the Form 990 was designed to allow both the IRS and the public to evaluate tax-exempt organizations and how they operate. It collects information about the nonprofit’s mission, programs, and of course finances. And more recently, the 990…

13Oct 2016 by William Simi

Overcoming the Overhead Myth

Not For Profit

If you work in the non-profit sector then you’ve almost certainly come across Dan Pallotta’s highly influential TED talk from 2009 ‘The Way We Think About Charity Is Dead Wrong’ – and if you haven’t then we would strongly urge you to do so. The key element of the TED talk is the concept of ‘The Overhead Myth’ – the ingrained and persistent belief that a non-profit organization’s key aim should always be to limit and reduce its overhead above all other objectives. There’s a belief that spending money on fundraising efforts, advertising campaigns and talented, experienced personnel is somehow contrary to the aims of a charity – and that causes a problem for the non-profit sector. If you’re ever going to grow your charity, increase your fundraising income and…

07Jan 2014 by William Simi

Donors Beware – Don’t Fall for Charity Scams Following Disasters

Not For Profit

The IRS warns consumers not to fall for bogus charity scams. They often occur in the wake of major disasters like the recent tornadoes in the Midwest or the typhoon in the Philippines. Thieves play on the goodwill of people who want to help disaster victims. They pose as a real charity in order to steal money or get private information to commit identity theft. The scams use different tactics. Offering charity relief, criminals often: -Claim to be with real charities to gain public trust. -Use names similar to legitimate charities. -Use email to steer people to bogus websites that often look like real charity sites. -Contact people by phone or email to get them to ‘donate’ money or give their financial information. The IRS offers the following tips to…

05Jun 2013 by William Simi

Principle 12: Board Independence

Non Profit Principles: Steering You in the Right Direction, Not For Profit

The majority of the board members of a charitable organization should be independent. Two-thirds of them should be independent and they shall not be entitled to compensation, receive any financial benefits, and should not be related to anyone one in the organization who does. -All members must have loyalty to the company and put the organization’s interests above their own. -Pushing for a nepotism policy will help elude favoritism among the board members. LEGAL AND COMPLIANCE ISSUES -IRS Form 990 asks how many of the board members that are independent. -The IRS defines what independent board member is. -A few state laws set a minimum number for independent board members.

30Jun 2011 by William Simi

Measuring What Matters: Performance Measurement for Not-For-Profit Organizations

Business Advisory, Not For Profit

In previous blog posts and newsletter articles, we have talked about the way in which a performance measurement program can help business owners enhance the profitability and operational efficiency of a for-profit enterprise. This article will discuss how performance measurement can be of benefit to a not-for-profit organization, as well. A performance measurement process involves the design and implementation of an information feedback system by which management identifies and then monitors its key performance indicators (KPIs). These KPIs give a business owner the ability to measure and, as a result, better manage those activities, behaviors and processes that drive organizational success, sustainability and profit. In a typical performance measurement application, the selected KPIs are incorporated into a balance scorecard framework that allows for the evaluation of business performance in light…

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