If an organization is selling goods or services to generate income, even if it is conducting the activity within a larger group of activities related to its exempt purpose, the activity is a trade or business. It is important that you file the correct return and pay taxes on this income. Sales of merchandise, publications, …
Monthly Archive: October 2008
Oct
29
Jeopardizing Tax-Exempt Status
For many small startup nonprofits, learning the ins and outs of nonprofit operations, especially as an organization exempt under IRC 501(c)(3), can be overwhelming. However, it may be best to first begin to acquire knowledge of what activities have the potential of jeopardizing the exempt status that you have worked so diligently to achieve. Four …
Oct
27
The Role of the Board of Directors in Fundraising
I believe steadfastly that nonprofit Boards should be fully contributing. However, in addition to contributing cash to their organizations, members of the Board of Directors should also assist in the generall fundraising efforts. When determining whether or not to fund your organization, in many cases funders will consider three questions: 1. What percentage of the …
Oct
24
Foundation Grant Funding
Although there are over 60,000 foundations and countless corporations and individuals ready and willing to contribute to every cause, there is today tremendous competition for winning grants. The growth of the nonprofit sector is a major cause of this intense grant competition. Now, more than ever, it is important grantseekers to be educated in the …
Oct
21
Hiring a Nonprofit Consultant
While your Board of Directors should consist of a highly competent and skilled cross-section of the community you serve, most organizations, especially small startup nonprofits, will encounter the need to hire a consultant from time to time to assist either board members or staff members with their respective duties. Even if board members could do …
Oct
13
Nonprofit Accounting
I’m often asked by those new to the nonprofit sector what type of charity accounting and bookkeeping is necessary for churches and charities. My typical response is that is critical that nonprofit directors and executives develop at least basic skills in financial management. Expecting others in the organization to manage finances is clearly asking for …
Oct
10
Warning Nonprofit Administrators: Please Be Diligent
It has come to my attention, once again, that numerous small businesses are receiving correspondence from Corporate Compliance in their state. Operating under the guise of a government agency, a private business is distributing very official looking documents to the registered agents of small corporations claiming a need to file annual meeting minutes in order …
Oct
08
Volunteer Retention
A volunteer is an essential asset to a nonprofit organization, and volunteer management requires an understanding volunteer needs and an application of strategies that address volunteer needs. Many nonprofit professionals rely upon well known motivation theorist when managing the needs of their volunteers. Specifically, I rely on Maslow’s hierarchy of needs to address the following …
Oct
06
Volunteer Recruitment
Once you have established the parameters for your organization’s volunteer program, you are ready to undertake the task of volunteer recruitment. Upon beginning to recruit volunteers, you must keep in mind the need for diversity within your program. To adequately reflect the needs of a diverse population, your volunteers should be a diverse group as …
Oct
02
Establishing and Managing Your Volunteer Program
In America, volunteers and volunteer organizations are a way of life. Volunteers give their time, talents, and treasures in many ways. Parents frequently volunteer to help at their child’s school, with extracurricular activities, or church groups. Children learn about volunteering from their parents, their teachers, and their peers as many public, private, and parochial schools …
