Not-for-Profit

A key fiduciary duty of your not-for-profit’s board of directors is to oversee and monitor the organization’s financial health. Some financial warning signs — such as the loss of a major funder — may jump out immediately. But other red flags can be more subtle. Here are some of them.

Many large U.S. companies offer their employees a matching gift program which helps boost the impact of their employees’ charitable gifts. Double the Donation estimates that $2 to $3 billion is donated through matching gift programs every year.

Every nonprofit should have an executive search plan. Even if you aren’t facing an imminent vacancy, your organization is smart to prepare for what can be a long process. Executive searches generally take several months — even if you end up hiring someone already known to your nonprofit.

Accounting for contributions and grants has often proven complicated for not-for-profits, especially when they come with donor-imposed conditions. But 2018 guidance from the Financial Accounting Standards Board (FASB) provided some much-needed clarification of earlier instructions.

To properly fulfill their fiduciary duties, your nonprofit’s board needs certain information. And it’s up to the executive director and managers to ensure they have it.

State law typically specifies the minimum number of directors a not-for-profit must have on its board. In Minnesota, that minimum is three members. But so long as organizations fulfill that requirement, it’s up to them to determine how many total board members they need.

If your top executive were to step down tomorrow, would your not-for-profit know how to make a smooth leadership transition or would your boat suddenly be rudderless? Fortunately, creating a succession plan isn’t as difficult as you might think.

If your not-for-profit suffers from a chronic volunteer shortage or has had to put off large projects for lack of helping hands, corporate volunteer partnerships can be a boon. Teaming up with a well-known company can also raise your nonprofit’s profile with potential donors and the media.

There's some new ways for you to reduce your nonprofit's filing burden if you are thinking about merging or otherwise restructuring. Recently, the IRS made the process easier for some organizations.

Your organization's annual report is of particular interest to stakeholders such as donors, grant makers, clients, volunteers, watchdog groups and the government. 

Many business decisions may offer an advantage to your nonprofit organization but on the flip side many times carries risk. For instance, if your not-for-profit owns its own facility, most likely you have more control over your work space than if you lease.  However, ownership carries risks and leasing can provide

The executive director and managers of not-for-profit organizations need to ensure that their board receives the information they need to fulfill their fiduciary duties.