How to Hire a Freelancer as a Non-Profit

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Are you looking to hire a freelancer as a non-profit?

If so, you probably have a lot of questions. You want to hire someone who will be a good fit for your business and produce high-quality work.

Indeed, there are many qualified freelancers out there. But there are also those who won’t be as great a fit for your company.

How do you tell the difference? We’ll go into some tips below.

Keep reading to learn more!

Why Hire a Freelancer?

If you’re a non-profit, you know the struggle of trying to decide when to hire a full-time member of staff.

The advantages of hiring a freelancer are well documented. It could help you save money, reduce your risk, and access specialized talent and skill sets that you wouldn’t be able to afford otherwise.

After all, you want as much money as possible to be able to go to your cause. In addition, most donors don’t give to your office administration fund. This often doesn’t leave you with endless funds to add people to your payroll.

Yet, you still need to get the work done. If it’s not something you can do yourself, you might find yourself at a bit of a loss.

This is when you should hire a freelancer.

What Are Freelancers?

Freelancers use their professional expertise to help a variety of clients.

Yet, instead of working for a company, they work for themselves, setting their own hours and prices.

This can have a variety of advantages. For one, freelancers offer you the flexibility to only pay for the services you need, when you need them. Frequently, freelancers and companies develop long-term working relationships.

Yet, you are under no obligation to use a freelancer more than once. This means you don’t have to keep them on your regular payroll when you’re finished using their services.

Are There Any Cons to Hiring a Freelancer?

For all of the positives there are to working with a freelancer, quite a few negatives also exist.

Chiefly, these pertain to variances in professional experience. These days, anyone can create a profile on places like Upwork or ProBlogger and market themselves as a freelancer.

So, how do you ensure you’re finding a true professional who will work well with your company?

Follow the steps below for a better freelancer hiring experience!

1. Identify Your Needs

A successful hiring process always begins with you.

Before you start searching for freelancers, identify what type of work you need done. There are many different types of freelancers, and you don’t want to hire a freelance social media manager when you really need a freelance writer.

Be as specific as possible, outlining the length and any other pertinent details.

Work out a budget as well. Do some research into what the average freelancer charges for this service and make sure you can afford it.

Compile all of these aspects into a list and allow anyone who will be over the freelancer or their project to contribute to it. The clearer you can be with yourself and your team, the higher the chances of hiring well.

2. Create a Job Ad

Using the information you just gathered, write a compelling job ad.

In order to attract freelancers, tell them as much information about the project as possible. For instance, if you want to hire a WordPress freelancer to help you with your website, emphasize how they’ll play a crucial role in your web development.

Then, inform them of any benefits they may receive, including what you’re willing to pay or the possibility for continued work. If you’re willing to discuss pay with them, take note of that as well.

Last, if your project is urgent, write that in as well. This will let the freelancer know that they should have a decent chunk of time in their schedule if they plan on working for you.

Require your applicants to send you their resumes and references. That way, you can see their professional experience and ask previous clients if they were satisfied with their work.

After you’ve finished creating your job ad, post it on a job site! Freelancers often visit certain sites, such as Fiverr, Upwork, and ProBlogger, to look for jobs, so make sure yours is there!

3. Search Freelancer Websites

As mentioned above, many freelancers go on freelancer job boards quite often.

Did you know that many of them also have profiles on these sites?

Usually, these profiles contain information on the types of work they do, how to contact them, as well as client reviews. If you’re looking for a specific type of freelancer, simply go on one of these sites and search for a particular service.

This should pull up a list of top-rated workers. Peruse through their profiles until you find a person you believe would be a great match. Then, reach out to them and pitch your project.

4. Pay Them for a Test Service

Do you have a specific freelancer in mind but don’t know whether or not they’d be right for you?

Offer to pay them for a test service. This test can be anything you’d like it to be as long as it showcases the skills necessary to complete your project. To save yourself money, make it shorter than your actual work order.

Once they return the test to you, evaluate it and see what you think of their work.

5. Ask to See a Portfolio

Most freelancers keep portfolios of their work to show potential clients.

Before hiring someone, ask to see their portfolio or other examples of their finished past work. This will give you an idea of what this person sees as a professional level of quality.

Want to Take Control of the Money You’re Spending?

If you decide to hire a freelancer, you are making a very good financial choice for your non-profit.

After all, freelancers often get the work done without giving you the additional burden of putting a full-time staffer on your payroll. They also often provide professional-level experience for a lower price.

Want to better manage your non-profit’s finances? See how we can help!

Tosha is a CEO & Family Vacationer: Podcast with The John Garrett

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It’s important that you maintain a health work-life balance, and find hobbies or interests that can distract you from a lengthy email inbox or miscellaneous tasks that can sometimes be frustrating.

That’s why Tosha Anderson, founder and CEO of The Charity CFO, recently went on The John Garrett Podcast to talk about her passion for traveling around the world with her family. In this episode, Tosha speaks on the importance of travelling and how it motivated her to start her own firm.

LISTEN TO TOSHA ANDERSON ON THE JOHN GARRETT PODCAST HERE.

Additionally, Tosha highlights the importance of having a solid company culture, which encourages her colleagues to pursue their hobbies.

Later in the episode, she discusses the benefits of implementing creativity into accounting practices. It’s a light-hearted episode with a lot of cool information, one that you can listen to if you want to learn more about company culture and feeling inspired to follow your passions.

Check out our services if you want help with your nonprofit or its accounting practices, so you can best build a company culture that inspires you to chase your passions- like Tosha has.

How To Raise Money With Virtual Events As A Non-Profit

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Events are one of the most popular fundraising techniques for charities and nonprofits. Unfortunately, quarantine enforcement led to the cancellation of most events for the foreseeable future.

Many nonprofits are now wondering how to meet their budget goals without hosting charity events. If this is you, keep reading for our best event ideas on how to raise money using virtual events.

Virtual Runs And Walks

Charity runs and walks were a staple way to raise funds before the stay at home directives started. But you can still hold successful virtual runs and walks for your organization. What is even better is that you will have fewer logistics to track.

There won’t be a need for costly overhead and time-consuming tasks like hiring a venue or recruiting volunteers. You also don’t have to worry about clearing roads, providing water and restroom facilities, or printing branded material. All you would need to do is recruit participants by promoting the event to your social media followers and email lists.

People that sign up would then need to pay a joining fee and then fundraise for you by getting donations from their network. On the day of the event, the participants can then pick a place to complete their run. They could choose to run on a treadmill at home or around their home or neighborhood.

Facebook Watch Party

One of the best ideas for how to raise money on Facebook is to hold a virtual watch party on the platform. If you have an in-house documentary or talk that you would like to share with the world then a watch party is the perfect way to do so.

You would raise funds by selling tickets, snacks, and merchandise in advance. Towards the end of the watch party, you could also ask for donations from the attendees.

Virtual Tour

Showing your charity’s need for funds is usually an effective way of getting donations. So, you can raise funds by hosting a virtual tour of your projects or facilities.

You would show how previous donations have been used and the areas that still need work. For instance, if you run a children’s home you can show places that need renovations. You could also do interviews with children that need funds to cover their basic needs.

To encourage participation, you could encourage followers to ask questions as you do the tour. When donors see the work you are doing and the amount of need there is, they will be willing to donate at the end of the tour when you ask for funds.

Online Game Night

Another great virtual event idea for how to raise money is to host an online game night. Figure out how many teams you would be able to host and how much the participation fee should be for you to reach your fundraising goal.

Try reaching out to several companies for prize donations that would attract many participants. Your game night should also include several different types of questions and challenges to attract a diverse audience.

Online platforms like Zoom or Discord are great for hosting your game night as there are options for people to answer questions in the chatbox. You can also host several people at once. If you are at a loss for what questions to ask you can buy game packages online or rent games from sites like Gamefly.

Virtual Contests

Another spin to online games would be to host an online contest. Participants would need to pay to enter and voters would also need to pay to vote or view the event. The winner would get a lucrative prize while contributing to a worthy cause.

Some examples of contests you could hold are essay contests, online talent shows, photography contests, costume contests, or art contests. The theme of the contest could be tailored to meet your charity’s focus.

Online Auctions

Auctions have always been a guaranteed method for how to raise money for charities. A well-organized online auction event could raise even more funds than traditional auctions. This is because you can invite bidders from all over the world.

To hold a successful online auction event, you will need to host it on an online bidding platform such as charityauctionstoday.com and 501auctions.com. You can choose to host a private auction or public auction. The private auction requires all attendees to have an auction link.

Public auctions would be open to anyone that finds out about it. You could advertise the auction event on social media and encourage your followers to share the event. You could also ask your network and email list to donate items to be auctioned off.

One Day Social Media Sharing And Fundraising Event

A great idea for how to raise money fast is to organize a fundraising blitz on a special day that is relevant to the organization. For example, a charity dealing with domestic abuse could choose Valentine’s day to run the fundraising blitz.

Send out emails and social media posts a few days before the event. This helps to make your donors and followers aware of the fundraising event. You could also look for a company to sponsor the event and match whatever donations you receive.

On the day of the event, send out emails and social media posts to your followers about the impact your charity is making. Remind them why it’s important for them and their network to donate. You should also have several updates telling them how much you’ve received in donations and encouraging them to donate more.

An online counter showing the funds received would also be a great visual motivator. Encourage your followers to share any posts, emails, or stories that you post to increase awareness about your charity.

Learn How To Raise Money For Charity Online

The internet has become a vital part of our lives as most of us spend hours of every day online. So it is no surprise that charity fundraising is now popularly done over the internet. The COVID-19 pandemic has also forced non-profits to hold virtual events to raise funds.

Some popular fundraisers include virtual runs, virtual auctions, and Facebook watch events. Virtual events and fundraising are here to stay so all charity organizations should master how to raise money online. If you need assistance managing your charity’s finances, contact us today.

10 Project Management Tips Every Non-Profit Manager Should Know

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A project manager has a lot of responsibility.

They have to ensure that they meet the desired outcome. They have to manage their time, people and figure out how to manage a budget. There’s a lot that goes into a project manager, especially at nonprofits.

There’s also a need to know the best nonprofit project management tips in order to achieve the most success.

Here’s are 10 project management tips every non-profit should know.

1. Discuss the Scope of the Project

The scope of the project is what goes into it in order to achieve the most success.

As a project manager for a nonprofit, you need to figure out exactly what you are doing. When you have a clear idea of what to do, it’s easier to help a nonprofit that is either just starting out or has been around for years.

Also, a nonprofit may not have a project manager, at least initially, because it’s just starting out. It’s gathering interest from the community. But as nonprofits expand, there’s more of a need for nonprofit project managers. 

The scope of the project should include deliverables. These are the outcomes of any project. This is what you need to deliver by a specific time frame.

Another part of the scope is the available resources you have to complete this project. You need to know what kind of tools are at your disposal so you can complete the project.

Communicate with nonprofit leaders to get the deliverables and know your resources, it will help you become more successful as a non-profit manager.

2. Figure Out How to Resolve Any Problems

As a non-profit manager, you also need to figure out how to resolve issues. If there’s an issue between two people on a team, it’s your responsibility to resolve it.

You need to figure out what issues may arise and what can delay the project you are working on for the non-profit.

3. Have Expectations

Another project management tip is to set expectations. You should set expectations with those who work with you at the non-profit.

You want people to know what your goals are and what how successful the non-profit can be if it meets these goals. That’s why it’s important to lay down expectations.

These expectations should be a guide for a non-profit. They should help others understand what they need to accomplish each day.

4. Know the Risk

There’s always a risk of a project failing. There’s a risk of a fundraiser going completely wrong.

You can’t ignore this consequence. You have to know where in the project the most risk could happen. You have to assess what could make a project fail. When you assess risk, you better know how to prepare for it.

You know what to do in case something goes wrong. You know how to achieve the goals of a non-profit while considering the risk.

5. Anticipate Any Changes

In addition, to risk, you should also expect changes. A non-profit may have to change venues or something else.

Changes can derail a non-profit project unless you know how to prepare for them. That’s why you should anticipate any changes throughout the

6. Help Others Succeed

Another critical part of having an effective project management system is knowing how to help others succeed.

If you are the non-profit project manager, you are responsible for making sure everything runs smoothly. In order for that to happen, you need to make sure that everyone else has the tools necessary to succeed.

You not only want to be encouraging, but you also want to be communicative about progress and ensure everyone knows what they are trying to achieve.

7. Have Mini-Goals

Mini-goals helps give you something to track. You can track your daily to weekly goals, which are considered smaller than having monthly or yearly goals.

As a project manager for a non-profit, you want to have makes sure you are fulfilling your smaller goals because that will ultimately help you accomplish your major objective.

8. Be Organized

A critical part of project management is staying organized. You not only have to know everyone’s roles and make sure everyone is on task, but you also have to run events. You are responsible for making sure an event is run smoothly.

To help you stay organized as a non-profit project manager, you should consider strategies to help keep you organized. Have an online calendar, a checklist, social media updates, and anything else that helps you be more organized.

9. Have the Right Tools In Place

As a project manager, you also need to have the right tools to help you stay organized and productive.

Consider using apps like Trello, Evernote, and other notetaking apps. Another helpful software is Slack, which can help you communicate with those involved in the non-profit, especially if they are working remotely.

10. Know Your Limit

The final tip is to know your limit as a project manager. Being a project manager of a non-profit or anything requires a lot of work.

You have to manage others and you’re responsible for the success and failures of any events. That’s why it’s important to ask for help. Know how you can help others.

Now You Know the Best Project Management Tips

These are the best project management tips. They can give you insight on what to do for a non-profit when it comes to running events and making sure everyone knows their role.

In addition, these tips can also help with other businesses in addition to non-profits. They can help you develop skills that also work beyond project management.

Check out our services if you want help with your non-profit.

How to Manage Payroll as a Nonprofit

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According to the United States Bureau of Labor Statistics, 12.3 million people are employed by nonprofits. That’s a lot of employees to manage!

Payroll is a critically important part of running any business and nonprofits are no different. This guide will explore everything you need to know about how to manage payroll for your nonprofit with accuracy.

Finding Payroll Services

Firstly, your organization needs a payroll manager and software to manage all the employee data. What is a payroll manager? This is someone specifically trained to manage the ins and outs of all your payroll needs including taxes and employee benefits.

Your organization likely needs to invest in a quality portal for payroll services. If your organization is really small and brand new, you might be able to get away with just a spreadsheet, but it’s not the best practice for accuracy and data transparency.

Payroll management isn’t easy and if you’re asking yourself how to manage my payroll, you’re definitely in need of professional assistance. Besides knowing the intricate details of payroll tax management and other tricky laws, these services can cut checks, facilitate direct deposits, and even track paid time off.

The best payment systems are two-sided so that employees can also log in and download their own data when they need it. Most of them even have smartphone apps!

This is a great resource for finding the payroll system that fits your organization. Paying a monthly cost for these services is well worth it in the long run for you and your employees to have a good work experience.

Getting Started With Payroll

As you get ready to start paying your employees, you should ask yourself a few key questions. This will help make tax season easier and ensure there aren’t any issues with your employees!

What Are Your Benefits?

Keeping track of all the information for each employee’s benefits can seem like a ton of work, but it’s crucial that the correct amount of money is removed from your employees’ pay checks each month.

Employee benefits might include, but aren’t limited to:

  • Health Insurance
  • Health Savings Account/Flexible Spending Account
  • Dental Insurance
  • Vision Insurance
  • Retirement Plan
  • Life Insurance
  • Transportation Fund
  • Paid Time Off
  • Sick Time

All of these benefits are up to the employer to offer, but every organization should verify their exact requirements to provide health insurance to their employees under the Affordable Care Act. This also may stipulate what portion, if any, of employee health insurance your nonprofit is required to cover.

Who Are Your Employees?

Do you hire contractors or part-time staff? These workers may not have employee benefits and their payroll will need some tweaking. Contractor taxes also differ from that of full-time employees, so be sure to have all of this information prior to starting.

In addition to collecting W-4 forms from employees, be sure to provide all necessary paperwork for enrolling in health insurance and other employee benefits. Keep meticulous records on each employee both digitally and in hard copies.

How Are You Handling Payroll Taxes?

Tax season might be everyone’s least favorite time of year, but it’s crucial for your nonprofit organization to withhold the correct amounts for each employee for both state and federal taxes, as your state allows.

After you collect each employee’s W-4 tax form, input the data into your payroll software and be sure to verify this information with your employee.

Here is a list of some taxes your organization might need to withhold from paychecks and potentially match per dollar:

  • Local Income Tax: This pertains to cities, like New York City or Washington D.C.
  • State Income Tax: Some states don’t have this, like Tennessee and Florida. It depends where your nonprofit is located.
  • Federal Income Tax: The W-4 will let you know how much to withhold for each paycheck.
  • Worker’s Compensation: This is to protect your nonprofit from any injuries that could occur on the job.
  • State Unemployment Tax: This is a pool of funds that go to unemployment benefits.
  • Social Security: This supports those on social security benefits.

What Are My Legal Requirements?

In addition to your requirements to provide healthcare, your full-time employees have rights that you must adhere to according to the law.

For example, depending on your state, you may be required to offer a certain amount of sick days or vacation days.

You also may be required to provide paid or unpaid leave for new parents. Check with your nonprofit legal counsel to learn your particular state’s legal requirements before setting up your payroll system and employee handbook.

Tips to Manage Payroll

Part-time employees, full-time employees, and contract workers all rely on your ability to pay them on time and in full. While nonprofits might be exempt from certain taxes, they still function as a business and owe their employees a progressive payment system that accommodates all their needs.

If you don’t want to hire a payroll service, here are a few more options.

Accounting Department: If your organization is growing rapidly, consider forming a department to handle all of the financial information in-house with the help of software.

Hire a Bookkeeper: Bookkeepers have an extensive knowledge of payroll and financial systems. They can either be someone you hire to be in-house, but if your organization is small it is worth investing in a company and being one of their clients. Then, your bookkeeper is only used when needed. This is a great way to cut costs while taking the burden of payroll off your own plate while ensuring accuracy for employees.

Online Payroll/Software: If you’re brave, scrappy, and financially inclined, try managing all of this on your own.

Finalizing Employee Payroll

Now that you have all the insider tips on how to manage payroll for your nonprofit, contact us for more information on how we can help your nonprofit have efficient and transparency pay processes.

After all, you should focus on your mission and we’ll handle the rest!

The Insider’s Guide to Bookkeeping Services For Nonprofit Organizations

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Bookkeeping includes invoicing, employee payroll, financial reporting, and more. Is your nonprofit interested in using bookkeeping services? You’re in the right place.

Affordable bookkeeping services for nonprofits are crucial for ensuring financial stability and accuracy. Keep reading to learn exactly how nonprofits can benefit from outsourcing bookkeeping.

What Are Bookkeeping Services?

Bookkeeping and Accounting may be used interchangeably, but they’re very different. Bookkeeping is focused on cash flow for an institution while accounting is basically analyzing all of that data. This helps assess the overall financial health of the organization.

Nonprofit organizations have many financial needs like any business. They have to file complicated taxes, certify for tax-exemption status, and report out. They also have to track donations! This can be a lot for a small staff to handle.

Bookkeeping services are handled by a team of professionals who have experience in the field with nonprofits. Many of these experts have worked with religious organizations, foundations, and even museums. They use software and knowledge of financial trends to help your nonprofit succeed.

Why Should I Use Bookkeeping Services?

There are many reasons to outsource bookkeeping. In addition to being safer and more secure, it enables you to focus on your organization’s mission.

Get Auditing Assistance

Nonprofits typically undergo an annual audit, unlike many other industries. This is time-consuming for the bookkeepers and accountants at the institution.

Save time and money by using bookkeeping services. These services can ensure that your organization is reporting accurate information to the Internal Revenue Service. They can also ensure that your institution is in a state of financial health.

Auditing involves a complex analysis. It also involves finding records of all transactions and donations for an organization. Some nonprofits choose not to do this because of the workload. However, completing annual audits shows donors that your staff is committed to transparency. This can help secure future funds and help with grant applications.

Avoid Fraud

No one wants to talk about the possibility of fraud, but it can happen within the nonprofit world. Embezzlement is also a risk, especially with multiple employees in the finance department. If there aren’t checks and balances in place, tracing money can be difficult.

Luckily, outsourcing bookkeeping services can ensure integrity for your nonprofit. These highly-skilled bookkeepers know exactly what to look for to avoid fraud and can easily identify issues. That way, the issues are caught before they become harmful to the organization.

For example, bookkeepers can see double payments or cash from a new vendor. Maybe they see a sudden increase in payments. They can even comb through documents that appear to be backdated or have questionable signatures. These can be indicators that something fishy is going on at the organization.

Since they manage all documents, data, and cash flow, professional bookkeepers add a level of security to the institution. As a third-party entity, bookkeepers can help your organization stay safe. This ensures security for your nonprofit.

The typical organization loses 5% of it’s annual revenue to fraud. That can be a lot if your organization is a multi-national nonprofit. Avoid lost revenue by using an outsourced bookkeeper.

Get Tax Filing Assistance

For nonprofits to earn their 501(c)(3) status and tax exemption, they have to be transparent. This means complete accuracy with the IRS on all financial matters. This includes strategic and accurate bookkeeping to provide easy filing when it is needed.

Nonprofits can have many revenue streams, including tax-deductible donations, membership dues, and even ticket admissions. Getting everything organized for tax season can be really complicated.

Bookkeeping services are useful because they use software that organizes all records perfectly. These professionals can also help identify areas to lower expenses for your organization. That way, you can reap the most benefits of the money your organization receives.

Using a dedicated bookkeeper absolutely makes this a seamless experience. This reduces stress during tax time for the nonprofit staff. Instead, it gives you the time to work on your mission and serve the community.

Save Time and Money

Instead of spending time organizing receipts, invoices, and payroll, handoff those duties to an expert. Your staff can then spend more time executing your mission.

In 2013, nonprofits paid $634 billion in wages. Hiring and training new employees, even if they’re very talented bookkeepers and accountants, can take a lot of time and energy. Instead, spend that manpower and resources on finding an outsourced financial services business.

Once your outsourced bookkeeper is set up, it requires very little management on the nonprofit’s side.

Bookkeeping Software Is More Accurate

Your organization might not have the funds to have a full-time bookkeeper and bookkeeping software. Luckily, an outsourced bookkeeping service has those resources for you to benefit from.

Bookkeeping software makes everything much more accurate. There is so much room for error when a team handles financials by hand or in a simple Excel sheet.

Avoid that hassle by investing in affordable financial services.

Ready to Outsource Bookkeeping Services?

Now that you know the many benefits of using an outside service, request a meeting with us to get started.

Pretty soon, your nonprofit’s bookkeeping services will be a breeze.

Our dedicated and experienced team works with an array of nonprofits. Many of our clients have been able to expand their impact on the community due to our financial help.

Check out our blog for more information on how our nonprofit financial services could work for your organization.

7 Common Fundraising Mistakes to Avoid for Nonprofits

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Are you trying to build a strong foundation for your nonprofit? Well, it all begins with knowing the in and outs of the entire structure. In premise, the difference between a good and a bad nonprofit is the ability to avoid common fundraising mistakes. 

In this article, we will cover these 7 mistakes, so that you can build a project that’s truly exquisite. Read on to learn more. 

Building a successful project through fundraising is important to your organization’s success.

1. Untailored Messaging

When you’re talking to your supporters, a one-fits-all application does not work. You need to know what works for each target audience and hone your messaging for each segment of your donors. 

Segmenting your supporters into separate groups is critical to making sure that the right message is delivered to the right person at the right time. You can accomplish this by breaking down the entire collective into smaller sub-sections, such as big-donors, first-time donors, recurring-donors, event attendees, third-parties, etc.

You might even consider developing donor characteristics to help with driving action on their part. Once you have segmented your audience, it’s much easier to tailor content for each, thus build real relationships.

Stronger bonds = greater number of financial commitments. 

2. Not Talking About the “Why?”

Most of the nonprofit organizations spend too much time talking about how they will perform their work, rather than why they will do it. 

After all, you’ve adequately enough to create a solution to an important problem with dedication. But to get people to appreciate such efforts, you need them to provide context. Make them care. 

This means that you have spoken about the “why” before you even mention the “how. First, speak about the challenges you have addressed, then speak about how you solved them. This will spark genuine connections with you on the empathetic level which will help them to action. 

Don’t assume that your supporters know everything about you. Just because they’ve decided to donate, doesn’t mean they have an understanding of your work and its importance. 

Make use of the opportunity and give them the full story. 

3. Common Fundraising Mistakes: Wrong Relationships

If your relationships with the supporters are purely transactional, they will move on. If they are relational, they will continue to thrive and blossom. 

With the use of modern technologies, it can be very easy to bombard your sponsors with asks across all channels. Taking this unthoughtful approach to why and when you ask your sponsors for contributions will result in disconnection and donor fatigue.

4. High Expectations, Poor Outcomes

Do not set high expectations and then deliver poor outcomes. Consistency is critical to reputation. Be realistic, honest, and transparent about all of your efforts and outcomes. 

In terms of the marketplace, reach and services, be consistent when articulating their effect. Meet the expectations set by important stakeholders, and deliver exceptional services. 

Exceed all expected outcomes.

5. Lack of Financial Competency

A most important faculty of the nonprofit experience is financial competency. Many founders have not anticipated what it will truly cost to start the nonprofit, much less where to get the funds. 

Any nonprofit needs a funding plan, which will decide if it will charge fees for services, and an effective records system to micromanage all resources. A nonprofit with poor funding is very unlikely to sustain itself before even implementing a verbose fundraising structure.

And even that’s not enough. Financial competency is vividly important in a nonprofit, so don’t dismiss it. 

6. Ineffective Board

If there is one thing that could break or make your project, it might be the quality of your board. Your initial boar members must be your true circle of influence. They should be those who have the influence, resources, and contacts that can help this project grow. 

They should believe in the mission of the organization, and be willing to sell that mission to anybody else. They are the gate-keepers who should help to open doors for you.

And where do you find such people? Well, that depends on the mission behind the nonprofit. But it’s all about networking, so visit meetings, conventions, conferences, and anything else that might be pertinent to the problems that you are trying to solve.

7. Failing to Communicate

Using a single channel for communication is shortsighted. All of your supporters are different. They have different genders, ages, capacities, etc. This is why a variety of communication channels is important to appeal to different people.

You need to have multichannel network strategies that will allow you to effectively collaborate and converse with donors regularly.

Many of your supporters and donors will respond best on certain communication channels. Some might be completely blind to invitations, CTAs, or other asks shared on single channels. 

In order to avoid this, segment your donors on the basis of their preference for communication. Or simply reach out to them on a platform, if you’ve sent an invitation over email, reach out to them by phone afterward.

Accounting Services for Your Nonprofit

Now that you know about the 7 common fundraising mistakes that will ruin your nonprofit, you are well on your way to build a solid foundation for your endeavors. As long as you avoid the pitfalls of others, and make wise decisions supported by an educated and influential board, there is no reason your mission is any less than the big fish. 

If you’re interested in solving one of 7 mistakes, being that of “lack of financial competency”, get in touch with us and we will happily walk you through our accounting services.

6 Factors to Consider When Hiring an Accounting Service for Nonprofits

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Are you a nonprofit organization that’s looking to take back control of your financial situation? Maybe you need help with how to budget for certain aspects of your organization. If so, then you need the help of professional accounting service.

Hiring an accounting service can help you receive the financial advice you need, get accessed to professional bookkeeping, and set up your nonprofit for success moving forward.

However, you want to make sure that you hire the right service for the job. Be sure to see below for several factors you should consider when hiring an accounting service for your nonprofit organization.

1. The Return on Investment

Too many nonprofits make the mistake of either attempting to perform accounting duties themselves or hiring the cheapest service possible to save on price. However, in doing so, you might be setting yourself up for failure in the future.

Your intent should never be to find the cheapest accounting service possible. It should be finding a service that gives you the highest return for your investment.

For example, find an accounting service that can help you just as much with your bookkeeping as it can with fundraising tips to kickstart your 501c3.

Any time that you reach out to an accounting firm, be sure to as about how much they charge and how they charge for their services. Some charge for each service they offer while others charge by the hour of work that those services require.

2. Communication With Their Clients

Hiring an accounting service for your needs isn’t just to perform the service, it’s an opportunity for you to learn! You’ll want to get an in-depth understanding of things like bookkeeping, fundraising, and so on.

To learn as much as you can, you need to find an accounting service that’s willing to teach you, not just perform the service. The more you learn, the better your nonprofit will be for it. 

An experienced accounting service can put complicated accounting aspects into layman’s terms for their clients. They can offer additional information and help give you tips on various aspects of your nonprofit’s costs.

3. Specialization in Nonprofit Accounting

Too many nonprofits make the mistake of hiring a business accounting service that doesn’t have experience working with nonprofits.

While there are a lot of similarities between nonprofits and for-profit businesses, there are also a lot of differences, and accounting is no exception. 

A nonprofit accounting service will have experience working with different programs that your organization is running. They’ll have an in-depth understanding of fundraising and how to maximize the donations that you receive.

They’ll understand the ins and outs of donor restrictions and how to keep your finances in accordance with the donor’s wishes. They’ll also help you delegate all funds you receive that are without restrictions and can be applied anywhere you have a need.

Make sure the accounting service you hire is dedicated to nonprofits. That way, you can ensure they will help you stay on-point with your funding and meet the expectations donors and volunteers have for your brand.

4. Variety of Services

If you’re hiring an accounting service for your nonprofit, then you want to make sure they can help you with several different aspects of your organization.

A reputable service will offer certified public accountants (CPAs) as well as bookkeepers to meet the requirements and requests of your donors. They’ll make it easy to track all the incoming and outgoing money for your nonprofit.

This all starts with the opportunity to reach out to an accounting service and tell them more about some of the accounting needs that you have. From there, they will sit down with you to discuss a game plan.

The plan that you and the accounting service put together will affect the pricing. They can outline the different solutions and services that they offer to meet your needs.

5. Check Online Reviews

For those of you that are planning to outsource your accounting needs, you’ll want to get a peek behind the curtain of what it’s like to work with them. There’s no better way to do that than checking the online reviews of previous and current clients.

They can give you insight into the accounting company’s process, communication, customer service, bookkeeping, and so much more.

Reading through their references and reviews can help you make an informed decision about which company to hire. 

Be sure to ask yourself some questions while you read through the comments. What services did those customers have the company perform? Were they happy with the service? What is the overall consensus of their customer support?

6. Goal-Setting Mindset

Your accounting troubles won’t be solved overnight. Remember, you want to find an accounting firm that helps you over the long haul.

For that reason, you should find a service that helps you set both short-term and long-term goals for your accounting.

You can tell them about your nonprofit’s five-year plan, and they can create an actionable set of goals to help you achieve it. 

“Your accounting troubles won’t be solved overnight. Remember, you want an accounting firm that helps you over the long haul.”

The Charity CFO

Use These Factors When Hiring an Accounting Service

Now that you’ve seen the several different factors that you need to consider when hiring an accounting service, be sure to use them to your advantage. 

Take the time to read this page to learn about how our services can help you with your nonprofit’s accounting and bookkeeping needs.

For more inquiries, please be sure to reach out on our contact us page and we will be happy to assist you further!

10 Elements Every Nonprofit Annual Report Should Possess

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There are more than 1.6 million nonprofit organizations in the U.S. Those tax-exempt organizations benefit from the $450 billion donated to charitable organizations in 2019. 

Donors expect a level of accountability from these organizations, and they want to know where their money is going. That’s one reason why a nonprofit annual report is so important.

As you consider your organization’s annual report, check out the following elements it should contain.

1. Know What the Law Requires

As you begin this process, keep in mind that an annual report is not always a legal requirement. However, the IRS does require most tax-exempt organizations to file Form 990 every year. It’s basically a list of the organization’s finances and its overall structure. 

The IRS sends all the 990’s to a company called Guidestar which posts them on its website. The Guidestar database contains more than five million 990s. This resource is publically available. It’s often the first stop for a donor looking to contribute to a nonprofit.

Some organizations don’t have to file a Form 990, and the IRS lists all those exemptions on its website. Here are just a few:

  • Churches
  • Schools affiliated with a church
  • Certain private foundations

Even if you’re not legally required to create an annual report, you still need to know what the IRS does require you to do.

2. An Overview of the Organization

Even though you may not be required to create an annual report, it’s still something you should strongly consider. You can provide the report to potential donors, for example, who want to learn more about your organization. 

Your annual report serves a function beyond simply a list of your expenses and revenues. This is a wonderful opportunity for you to showcase all the good work you’re doing.

You can include your mission statement here, along with your vision for the future. You might also include a message from your CEO in your nonprofit annual report.

3. Financial Information 

The number one question donors ask is “where does the money go?”. It makes sense if they’re thinking about contributing money to your nonprofit. They want to know how you’re spending it.

Your annual report is the perfect place for total transparency. You will want to provide specific information about how much money your organization raised and how it spent that money.

Many donors will want even more information about how much money you spent on programs and services and how much you spent on administrative expenses. The Better Business Bureau recommends that a nonprofit spend at least 65 percent of its budget on mission-focused activities.

Executive compensation is another issue some donors raise. The IRS allows charities to pay executive leaders what it calls “fair and reasonable” compensation. That’s designed to prevent an employee from receiving an enormous salary from the charity. The regulation is called the Federal Private Inurement Prohibition.

4. Programs and Services

Once you’ve detailed your income and expenses, now you can show off your great work. List all the programs and services your organization provides.

You might consider including a profile or snapshot of a person or community benefitting from your work.

5. Testimonials

You can even go a step further and devote an entire section of your annual report to testimonials. If your nonprofit provides a service to a community, for example, explain what the community needed and how your nonprofit filled that need.

If you’re providing medical care to certain individuals, provide specific information about how many people you helped. Highlight a recipient’s story if possible, putting a name and face with the statistics. 

6. Feature Key Donors in Your Nonprofit Annual Report

People who give to a charitable organization want to know they’re making a difference. Your annual report is a perfect place to show them exactly how their donation helped. Thank them by name whenever possible. 

This is also helpful information to share with potential donors who want to know that other people have also donated to your cause. They may be convinced to write a check if they know other prominent philanthropists have also contributed.

7. Share Your Vision for the Future

This is the best place to talk about where your organization is headed next. Hopefully, you’ve provided a comprehensive look at the last year and shared your successes.

Now, you can share your vision for the next year and what you hope to accomplish. This is another helpful tool for you to use when meeting with potential donors. You can give them specific information about where their money will go.

8. Use Visuals

Your Form 990 provides the nuts and bolts of your nonprofit’s finances. It’s good, solid information for donors to have. 

Using compelling images, photographs and graphics can make an emotional connection with your audience in a way numbers just can’t. 

If you’ve held fundraising events, share photos that take the reader inside the activities. If you’ve provided a service to the community, include pictures of your team in action. 

9. Create Two Formats

Whether you’re celebrating successes or meeting with potential donors, you’ll want to provide a copy of your annual report in more than one format. Some donors will ask for a report to review before your meeting, so have a digital version available to email.

You’ll also want a printed copy to hand out at meetings and events. If your organization has a physical office, leave a few copies of the report in the lobby for visitors to read.

You can even post a copy of your annual report on your website.

10. Develop Several Versions

Your annual report may be several pages long with beautiful photos and stories in a professionally bound booklet. You might also consider creating a couple of shorter versions of the report.

You can take some of the highlights and use them on a postcard. You can also create a one-page document called a “sell sheet” that can be included in media kits or information packages for volunteers.

Brand Consistency

You should make sure that all your reports conform to your nonprofit’s look and feel. You want people to immediately recognize your brand whenever they see a report. If your brand colors are blue and green, make sure those same colors are used in your nonprofit annual report.

We would love to help with any of your nonprofit’s needs. Please feel free to request a meeting with one of our advisors any time. 

10 Nonprofit Fundraising Tips That’ll Help You Jumpstart Your 501c3

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Are you new to the nonprofit world and wondering how to raise funds for a nonprofit? Believe it or not, fundraising doesn’t have to be as complicated as you may think.

There are lots of easy nonprofit fundraising ideas that require little to no money to get started. Read on to get inspiration for your next nonprofit fundraiser. 

1. Have a Giveback Night at a Local Restaurant: The Easiest Nonprofit Fundraising Idea

Are you looking for an easy fundraising idea that requires little to no cost to implement? If so, consider reaching out to your local restaurants and see if they will host a giveback night for you.

Read on for some of the chain restaurants that typically offer fundraising opportunities.

  • There’s no better way to give back than with burritos. Contact Chipotle if you’re interested in hosting a fundraising night with them. All you have to do is get accepted and advertise your event. When your supporters go to Chipotle, you get 33% of the sales during your designated time slot. 
  • Panera Bread is another popular chain that offers fundraising opportunities. If your organization is accepted, Panera Bread will design a customized flyer to help with advertising, and all you have to do is spread the word.  
  • In the heat of summer, what better way to raise money for your organization than partnering with Rita’s Italian Ice? Rita’s Italian Ice hosts something called “Scoop Nights” for organizations where your nonprofit will get a percentage of pre-tax sales. 

These are just a few examples. Local businesses that aren’t chain restaurants are often willing to work with local nonprofits with a fundraiser.

2. Hold a Live Auction or an Online Auction

Auctions are one of the most profitable fundraisers to choose from; however, they are a great deal of work. If you decide to hold an auction, your organization needs to make sure that you have the staff and volunteers available to make it a success.

Some of the action items your team will have to have to work on include creating a budget, booking a venue, soliciting auction items, and much more. 

3. Host a 5K or a Walk-A-Thon

Although a lot of organizations have them, so there is some competition, people love to participate in 5Ks. These events have become incredibly popular, and they’re a great way to engage your supporters in a healthy activity.

Some of the key aspects of planning a 5K include choosing your outdoor space, creating an event website, and start registering runners and walkers. 

A 5K or a Walk-A-Thon isn’t an easy fundraiser to plan, but it will be worth the work. 

4. Crowdfunding: The Perfect Online Fundraiser for Nonprofits

During the times of COVID-19, crowdfunding is the perfect way to raise money for your nonprofit. Your staff or board can easily set them up from the comfort of their home, and people can donate to your cause easily from their computer or phone.  

Some excellent crowdfunding sites are Fundly, a free crowdfunding platform, and Handbid, a good tool for all-in-one fundraising features. Although Handbid charges a small fee, it has a stress-free setup, that’s extremely user friendly.  

5. Hold a Golf Tournament

There’s not a whole lot that we can do during COVID-19 that’s safe. However, outdoor activities are something everyone can still enjoy. Golf is a safe activity that can engage your supporters in the pandemic.

Typically the way a golf tournament works is your nonprofit organization partners with a private club that will host the event. Your organization would need to sell tickets and corporate sponsorships to the golf tournament fundraiser.

Make sure to sell the tickets in advance. Giving your donors lots of opportunities to purchase their tickets to the tournament in advance will increase the number of people in attendance. 

6. Face Mask Fundraiser: The Most Useful COVID-19 Fundraiser

During the COVID-19 crisis, everyone needs face masks. What better merchandise to sell for a nonprofit fundraiser? 

One of the ultimate nonprofit fundraising tips is if you’re going to sell merchandise, is to make sure it’s something people need. Everyone has a ton of t-shirts, so selling t-shirts isn’t the most lucrative fundraising idea.

Masks are a hot item, and during the pandemic, neighbors are genuinely trying their best to help out the local nonprofits in small ways that they can afford. Masks are affordable and necessary. 

To implement this fundraiser, visit a site that makes custom face masks, and upload your logo. Companies that are designed to work with nonprofits will also typically set up an online store for you so your supporters can purchase their face masks online. 

7. Sign Up For Amazon Smile

One of the easiest things that every nonprofit should be doing to fundraise is to utilize Amazon Smile. Register your nonprofit organization on Amazon, and they will donate 0.5% of sales to the nonprofits chosen by their customers.

After you register your nonprofit organization, notify your supports on social media and in your newsletter.

8. Have a 50/50 Raffle

A 50/50 Raffle works primarily the same as any other raffle, except for the raffle prize for the winner is half the money raised. The winner gets to keep half the money, and your nonprofit organization gets to keep the other half.

This type of raffle motivates the participants to encourage others to participate, so there’s more money in the pot.

Often, a kindhearted winner will even donate their earnings back to the nonprofit.

9. Have a Good Old-Fashioned Bake Sale

Everyone loves baked goods. If you’re looking for an easy and traditional fundraiser, your nonprofit organization can’t go wrong with a bake sale. 

Bake sales require no capital because baked goods are typically donated by volunteers and members of your organization. If you’re raising money for a school or religious organization, bake sales are always a big hit. 

10. Facebook Live Fundraising Event

During the COVID-19 pandemic, a lot of people are spending time inside. Evening entertainment is now virtual. Why not capitalize on this opportunity and hold a virtual fundraising event?

Whether it’s a local band or artist, or a special guest speaker, live entertainment is sure to draw a crowd. Send invitations to the event on Facebook and be clear about your organization’s fundraising goals. During the actual event, your organization can directly ask the attendees to contribute.

Jumpstart Your 501c3 Today

No matter what your organization is, nonprofit fundraising and budgeting is an essential part of being successful. Start planning for your nonprofit’s financial future today.

If you’re looking to take control of your organization’s finances and need professional assistance, contact us today.

Learn to Start a Nonprofit With 6 Easy Steps

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Do you have a service or a cause that you are passionate about? Are you looking for ways to change the circumstances around that cause? If so, then starting a nonprofit is a tremendous idea!

Many people have an idea for a nonprofit that they would be interested in starting, but are unsure of how they should put their plans into action. Fortunately, it is not as difficult as it might seem.

All you need to do is learn the proper steps, then follow them as best as you can. See below for tips on how to start a nonprofit that will be both successful and helpful to others.

1. Set Your Mission

One of the biggest reasons that you might want to set up a nonprofit is due to the glaring need for the cause you are choosing.

Just to clarify, there might already be nonprofits out there to support the same cause that yours will, but your nonprofit might go about it a different way. 

For example, there are many different nonprofits that go towards finding a cure for cancer. However, some of them are focused on raising those funds via marathons, call-a-thons, and many different methods that resonate better with some people.

The mission of your nonprofit should be clear and concise. What are you hoping to achieve? How are you hoping to achieve it? Who will help you on this journey?

2. Perform Market Research

You would not start a business without identifying the need for a specific product or studying your potential competitors within that industry first. It is the same thought process here! Performing market research gives you a clear image of what you’re walking into.

Are there already nonprofits or for-profit organizations that are set up to help your cause? If so, how many of them are there? What is their approach to helping with this cause? What does their mission seem to be? Are some of them well-established?

It is important to remember that a nonprofit collects its cash from donors. If the market is already flooded with nonprofits like yours, you might find it hard to reach donors. They might already have built loyalty with another nonprofit’s brand.

3. Put A Leadership Team Together

Odds are, you’ve already got a few people that are interested in getting involved with your nonprofit when you start it up. These might be friends, relatives, parents of kids that are affected by your cause, and so on.

It is vitally important that you establish a leadership team prior to launch. The beauty of having people willing to help your cause is that you can use their individual talents.

For example, some of them might have experience starting a company or being on the board of a nonprofit in the past. Those types of people are a perfect fit for your board of directors.

You will also want to dive into the finer details of things, such as: Who will be the executive director (even if it’s yourself) be? What are the duties and responsibilities of your volunteers?

You should take this initial stage as an opportunity to write clear and concise duties for anyone that volunteers moving forward. That way, they (your volunteers) know exactly what they are getting into from the get-go. This can also help you when recruiting volunteers.

4. Set Your Finances

One of the most important aspects of creating a successful nonprofit is how you set up and maintain your finances. Do you have a plan for where to put your donations in when you receive them? Are you investing your funds from the start?

Accounting for a nonprofit is much like a business. You need to be strategic in how you invest the money you receive. Some funds need to go towards the cause, and some funds need to go towards processes such as operations, upcoming events, etc.

In order to learn how to start a nonprofit that renders results, you need to be practicing fiscal discipline. 

Of course, you can benefit from getting your finances in order with the help of a professional nonprofit accountant. Be sure to schedule a meeting to learn more about the ins and outs of nonprofit accounting.

5. File Tax Exempt Forms

In order to establish yourself as a legal and reputable nonprofit, you will need to complete a document known as a 501(c)(3) form. 

Filling out this form means applying for the term 501(c)(3) through the IRS, who will rank you as a nonprofit business. This means that your organization was approved by the IRS and is now deemed a tax-exempt organization for charity.

The process can also be performed by yourself. However, you might want to seek help from a nonprofit accountant or a lawyer that specializes in 501(c)(3) forms.

6. Establish a Brand

Lastly, it is time for you to take the time to create a brand that will resonate with your donors, volunteers, and those affected by the cause.

Your brand will be built on things like your nonprofit’s colors, logo, and name. This will help you build a reputation in a crowded marketplace of ideas and organizations. The more people can understand and agree with your brand, the more they will support your efforts.

Take time to think through what brand you are trying to create. What colors can you use to fulfill that? What logo or symbol will best capture your purpose?

Start a Nonprofit With These 6 Steps

Now that you have learned several steps on how to start a nonprofit, it is important that you use these tips and tricks to your advantage.

Be sure to read this article for more information on the characteristics of a successful nonprofit and how you can go about achieving them.

For more inquiries, please be sure to reach out by requesting a quote via the online form at the bottom of this page. We would be happy to help you further!

7 Characteristics Of A Successful Nonprofit Organization

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One of the best business ventures that one can embark upon is creating a nonprofit. This is a type of business that can truly make a change in someone’s life. But how do you run a successful nonprofit?

You want to make sure that if you enter this exciting venture, that you do it right and that you are able to run it efficiently.

We’ve put together this comprehensive guide to show you how to succeed at running a nonprofit.

The Guide on How to Run a Successful Nonprofit

You want to run a nonprofit because you want to make a difference in your community. But you must also make sure you do this correctly so that your nonprofit can grow and succeed in its endeavors.

Here’s what you need to know.

1. Invest Your Funds

Just because you are running a profit, doesn’t mean that you shouldn’t think like an ardent capitalist. Investing your company’s profits early on means that you’ll have greater reserves of funds for future initiatives.

You should start budgeting and tracking your proceeds from the get-go. You should set a goal for how much you wish to allocate to each of your projects. Your initial investments should be focused on raising money for these different goals.

2. Start with a Small Team

As your nonprofit grows, you may have to increase your staff size ten-fold. However, you should always try to be conservative with how many people you hire. When you start your nonprofit organization, you should start with a small team.

With a small team, you can focus more on the work of the nonprofit rather than having to manage employees and pay their salaries. When you have too many team members, it also slows down with decision-making.

Particularly for the Board of Directors or whatever is the department where the decisions are made, these should be as small as possible so that decisions are made quickly and efficiently. 

You should also know how to hire an employee for a nonprofit organization.

3. Ensure That the Donations Go to the Project

One of the main criticisms of nonprofits is that the majority of each donation goes toward administration rather than the project or goal. 

You can either do this by making every position voluntary so that 100% of the donations go toward the projects and goals that the nonprofits have. If you do have to pay your employees, you want them to understand that working in a nonprofit will not make them a millionaire – and that the majority of donations should go toward the project rather than paying employees or toward administration. When starting to hire, focus on hiring employees that are working directly with your program to drive up your financial ratios.

You will also have to make sure that you work with major donors who are committed to your nonprofit. You’ll have to make sure that your team members are greatly committed to your nonprofit and the initiatives that you strive for.

4. Less is More

No matter how big your nonprofit grows, you always want to go with the doctrine that ‘less is more.’ Essentially, this means that you should run your organization like a startup.

Your staff, as previously mentioned, should consist of a few highly-talented individuals. You want staff who are willing to step outside of their comfort zone and are dedicated to the mission of your nonprofit.

You want an exciting environment where everyone has to wear multiple hats to achieve multiple goals. Less is more means that with a handful of people, you can accomplish several goals and impact far more than a handful of people with your efforts.

5. Use the Best Software and Web Applications

You should definitely utilize different software programs to make your work far more efficient. This can range from using customer relationship management (CRM) software to interact best with your donors and manage your goals and tasks toward them.

You should also use bookkeeping software to properly keep track of your budget and your cash flow. You can use this software to learn about how much money is coming in and how much is going toward your goals.

You should also master different web applications such as Asana for collaboration tools and Slack for remotely interacting with your team. You should also have your marketing team be well-versed with social media platforms which are the best way to promote your cause.

6. Finding a Few Generous Donors

To truly make your nonprofit successful, you should aim to find a few generous donors. This doesn’t mean that you shouldn’t solicit donors from elsewhere, but your main focus should be on an exclusive club of a few generous donors.

When you focus on a few generous donors, then you’ll have a group of folks who are committed to your vision. These generous donors can regularly provide donations to help your nonprofit with its goals.

If any of these donors are well-known figures, you can ask them if it’s okay to advertise their patronage of your nonprofit. Doing so can encourage others to donate to your organization. In a way, a well-known figure who donates to a nonprofit is almost the same as a celebrity endorsement of a popular brand.

You can also encourage your few donors to speak at events that your nonprofit hosts. You can also request them to promote the nonprofit and its causes on their communication channels (websites, social media, network, etc.)

7. Have Fundraising Events

Finally, you should host fundraising events for your nonprofit. These can range from workshops to talks to parties to even a fair!

These events not only will serve as an opportunity to fundraise for the nonprofit but is also a great way to celebrate the achievements and pay respect to donors and to your staff. 

It’s also a great marketing tool. Hosting big events will let your community know more about your nonprofit and its goals.

Grow Your Non Profit

Now that you know the characteristics of a successful nonprofit, you are ready to start your nonprofit and watch it grow tremendously. We wish you all the best!

And to know more about how to run your nonprofit you should check out how to run fundraising events!

The Secrets Of Grant Writing For A Non-Profit

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A big part of the health of any non-profit is its ability to secure grants. Although the funding models of different non-profits vary, grants are a significant portion of the income for a vast majority of them. Most non-profits depend on grants to pay for their operational costs and to allow them to keep doing the excellent work that they set out to do.

Grant writing isn’t easy, but once you get the hang of it, it isn’t that difficult, either.

In most cases, non-profits have specific employees or volunteers assigned to the task of grant writing because it is a skill that takes some time to learn and to master. Most people who write grants will tell you that writing successful grants gets easier over time and with practice.

If you are new to grant writing, you may be feeling a bit overwhelmed. However, armed with the right guidance, tips, and tricks, paired with a little confidence and a lot of practice, you’ll be writing successful grants before you know it.

Keep reading, and soon, your non-profit will be celebrating the income you have earned through your grant writing efforts.

Why Grant Writing Is Crucial for Non-Profits

Over 50 billion dollars are awarded every year to non-profits through foundation and corporate grants. That’s a lot of money! These organizations want to give money to non-profits to help them accomplish their goals. If your organization doesn’t apply for this money, another organization will.

There are grants out there for every type of non-profit. Some work only with local non-profits, but others are national or even worldwide. Grants are often written to find funding for specific projects or needs, but there are also grants available for more general use funds as well.

Your organization will not get access to this funding unless it participates in grant writing. This money is there for the taking, but you have to ask for it to receive it. 

Grant writing is your key to this funding. If your organization is not writing grants now, it should start right away.

What to Know About Grant Writing

However, it’s important to know that grant writing is hard work. You cannot simply submit the same generic application to many grants and expect to win any of them. You will need to complete a new application for each grant for which you wish to apply, and each application can take many hours or even weeks. 

Your organization will need to do research to tailor each grant application to each grant and awarding agency. In most cases, you will need to create new, innovative projects and programs to make your non-profit attractive to the powers that be and, in turn, to win those grants.

Once your grant applications are complete, you will have to wait to hear back, and in many cases, you will not be awarded the grant even after all your work. Often, you and your non-profit will experience much disappointment – and then you will have to start all over again.

Although 35% of foundations fund at least half of the grant applications they receive, 6% of foundations report that they receive over one thousand applications for their grants each year. That’s a lot of competition to consider.

When you awarded a grant, you will celebrate, and it will all be worth it. However, you will likely have more failures than successes along the way.

How to Search for and Choose a Grant

Since grant writing is a time-consuming process, you will want to find and apply for grants that your non-profit may actually get. Therefore, it’s very important that you take time to find appropriate grants and choose only the grants for which you think your non-profit is eligible. 

Searching for Grants

There are many websites and databases out there to help connect non-profit organizations with organizations that fund grants. 

Grant Advisor is a free site that features reviews of foundations nationwide; you can search for foundations that offer grants in your non-profit’s realm and also learn about the foundations themselves. Once you find a foundation that seems to be a good match, you can search that organization’s site for grants. GuideStar is another site that can help in this way.

You can find other free grant search sites on the web as well. One of the most popular is grants.gov, which helps connect non-profits with government-based grants.

There are numerous paid grant search sites that are even more helpful, but they will cost a subscription fee. These include the Foundation Directory Online, Foundation Search, GrantStation, and others.

Choosing a Grant

When it comes time to choose a grant, there are a number of factors you should consider before moving forward. 

First, make sure that the receipt or denial of the grant will not make or break a special project. Create a diverse funding plan for your project and make sure that you are not counting on any more than 20% of your funding from grants. That way, if your grants fall through, you will be able to use your organization’s creativity to determine a way to move forward without it.

Second, make sure that you have plenty of time to research and write the grant proposal before moving forward. Rushed grant proposals rarely lead to successful grant awards, and you don’t want to waste your time. Make sure there is plenty of lead time to complete the grant in a thorough and conscientious manner.

If you have never written a grant before, there are tons of resources online to walk you through the required sections. Take the time to do your research and make sure that you use impeccable spelling, grammar, and sentence structure along the way. If you can find a grant writing course either in person or online, it will be beneficial, but many people write successful grants without any specialized training.

Finally, only apply for a grant if you are sure that your organization and project or programs meet the foundation’s qualifications. If you apply for a grant for which you are not eligible, you are wasting your time as well as the time of the people on the grant-awarding committee.  

Grants Open New Doors

Grant writing, submitting proposals, and receiving grants are very exciting. However, don’t be surprised if your first grant is rejected. More often than not, this is the case.

If your non-profit does not have a relationship with the organization to which you are applying, you will likely be turned down. Keep trying, though; with continued effort and perseverance, you can find success, and you can receive funding for your non-profit. Good luck!

Accounting can be tricky for non-profits of any size. If you are looking for assistance with accounting in your organization, please contact us today. 

How To Recruit Volunteers For Your Nonprofit Organization

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How To Recruit Volunteers

Are you looking to recruit new volunteers to your non-profit organization, but aren’t quite sure how to do it?

According to a recent survey conducted by the US Bureau of Labor Statistics, only about 25 percent of Americans take the time to volunteer. As a non-profit manager, this can be a daunting statistic. 

How are you supposed to motivate people to give up their time for your organization?

Read on to learn how to recruit volunteers for your non-profit organization. 

Clarify Your Needs 

Time is a very valuable thing. When someone volunteers for a non-profit, they want to know that they’re using their time wisely. And, they want to know that what they’re doing is actually making some kind of impact. 

For volunteers to understand the impact of their work, you need to take the time to understand the needs of your organization. Make sure you’re as specific as possible. 

For example, if you run a non-profit that provides meals to homeless people, it’s not enough to simply say, “we need more helpers”. Instead, ask yourself questions like:

  • Do we need more volunteers serving meals at events?
  • Do we need help with raising awareness around the issue of homelessness?
  • Do we need help with social media and content management to get the word out about our organization?

Whatever your needs are, make sure you define them early on. Then, you can draft a recruitment message that targets the right audience. 

To help hone in on your message, we suggest asking current volunteers, board members, and other staff members what the mission means to them. Why did they get involved in volunteering? What have their experiences taught them?

Asking these questions will help you create a more specific recruitment message that strikes a chord with your target audience.

Get the Word Out 

Once you’ve created a message for your target audience, it’s time to amplify it. 

If you simply post your message on your website and wait for the volunteers to start rolling in, you’ll be sorely disappointed. In addition to posting on your website, we also suggest recruiting volunteers through good old fashioned word-of-mouth. 

People are more inclined to say yes to do something when asked by someone they know. So, encourage your employees to start asking around for volunteers. Oftentimes, a lot of people have the desire to volunteer. But, they don’t take the initiative to research volunteer organizations/events in their own time. 

If a volunteer opportunity is presented to them via a friend or family member, they’ll be much more likely to take the bait. 

Beyond word of mouth, we also suggest posting your recruitment message on your social media channels. Twitter, Facebook, and Instagram are all great places to reach volunteers you otherwise wouldn’t. 

In addition to posting on your organization’s page, ask your staff members to repost your recruitment messages. This way, they can reach a wider audience. It’s also a good idea to attend volunteer fairs and connect with websites that list local volunteer opportunities.

You can also post information about your volunteer needs on sites like VolunteerMatch, VolunteerHub, and LinkedIn. 

Here are some other hot spots for recruiting new volunteers:

Schools and Universities 

Students tend to have more flexible schedules, and college students tend to have more free time on their hands. Plus, many students are eager to volunteer not just because they want to help out, but also because they want to boost their resumes and widen their experiences. 

We suggest getting in touch with the student services department for help in recruiting volunteers. You may even find a school that wants to partner with your non-profit in some way to make the exchange beneficial for the both of you. 

Businesses 

Many large corporations and businesses are looking for ways to get their employees involved in the community. 

While it’s partially true that businesses like to lend a helping hand, it’s also true that businesses know that volunteering and working with the community is good for their brand image. You can approach the community affairs, community relations, or corporate giving department within a company to discuss volunteer recruitment. 

Community Groups and Clubs 

Many community groups and clubs are also happy to lend their hand to volunteer. You can reach out to social clubs, professional clubs, campus-based fraternities and sororities, and other organizations for help. 

Make the Onboarding Process Seamless 

If the onboarding process is confusing and disorganized, you’re going to have a hard time recruiting new volunteers. 

Now, this doesn’t mean your onboarding process needs to be as simple as putting down your name and number on a sheet of paper. You should still take the necessary steps to vet your volunteers by conducting interviews, asking for references, and completing background checks if necessary. 

However, the onboarding process should be clear and straightforward. Dedicate a section of your website to explain what qualifications you’re looking for in a volunteer. 

Your website should also have volunteer applications readily available that can be downloaded and set back in via email. After sending in an application, clearly communicate what the next steps will be. 

Also, make sure you respond to volunteer applications in a timely manner. If you wait a month or more, someone’s schedule might change. Show people that you’re eager for their help by responding in a prompt manner. 

Make it Fun 

While volunteering for your organization may involve some nitty-gritty and emotionally exhausting work, you still want to make sure that your volunteers are enjoying themselves. 

In addition to regular volunteer events, you should also organize fun activities that allow your volunteers to cultivate relationships with one another and let loose a bit. For example, at the end of a big volunteer season, you could organize a pizza party for all of your volunteers to attend. 

How to Recruit Volunteers: Are You Ready to Recruit? 

Now that you know how to recruit volunteers, it’s time to put these tips into action. Before you know it, you’ll have volunteers lining up at the door to help you out!

Also, if you’re looking to do some fundraising for your non-profit, be sure to check out these essential rules. 

Tips For The Nonprofits Hiring Process: Finding The Right Employee

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Business, career and placement concept – image from back of two employers sitting in office and shaking hand of young asian woman after successful negotiations or interview

According to the National Center for Charitable Statistics, the number of nonprofits in the US increased by 4.5% from 2006 to 2016. The total now hovers around 1.5 million. While this is a good sign for charitable progress, it does create a bit of a bind for individual nonprofits. How do you find the right candidates when the pool for nonprofit work is deepening? The truth is that the nonprofits hiring process is different than any other industry.

Culture fit is of the utmost importance and competitive pay isn’t always a viable option. Fortunately, there are solutions to finding the perfect fit for your nonprofit. Read on to find out our top tips for the nonprofits hiring process.

Sort Out Your Budget First

Before you open up new positions, make sure you have a strong understanding of your nonprofit’s financial standing. Not only will this help you to set realistic expectations for compensation but it will show your candidates that your nonprofit is organized and professional.

The Charity CFO provides a number of financial services from specialized reporting for stakeholders to transaction documentation. We apply our financial expertise to your nonprofit so that you can focus on both the day-to-day and big picture goals. With our help, you and your present and future employees can maximize your ability to serve your community.

Understand What You Offer Besides Pay

Most of your candidates will understand that working in the nonprofit sector doesn’t always guarantee a massive paycheck. After all, your goal is to give as much back to your community as possible!

If you can’t offer competitive pay, take stock of any other benefits to working with your nonprofit. Perhaps you offer opportunities for professional development or room for advancement. Maybe you value the work-life balance more than most or put in extra work to create a fun and positive workplace culture.

Talk to your current employees and coworkers to find out what they enjoy most about their position. This can provide you with a bird’s eye view of what makes your nonprofit both special and appealing to any newcomers.

Go Outside the Traditional Nonprofits Hiring Pool

In previous years, most experts would have recommended that the top candidates should always have prior experience in the same field. In other words, you would have wanted candidates who had been working for a nonprofit organization for three, five, or even ten years. 

There are two problems with this method. The first is that it alienates those who are fresh to the job market and simply haven’t had the opportunity to work at a nonprofit yet. The second is that it rules out candidates who are coming from other fields—and bringing valuable expertise with them.

For example, consider a candidate with a background in retail. While the work, itself, was quite different, there are certain skills they developed in the service industry that will translate well to nonprofit work. They’re likely good with people, capable of fielding questions and finding real answers, and overall hard workers. 

In fact, you’re more likely to end up with an employee who has motivation, energy, and fresh ideas if you open up your hiring pool. Remember that you’re looking for someone who has a strong work ethic and believes in your cause. What they’ve done in the past isn’t quite as important.

Make Sure the Position Is Clear

When you’re creating your job listing, try to make the role and expectations as clear as possible. A recent LinkedIn survey uncovered what employees want most from their employers. Clear expectations and goals made the top of the list!

Most candidates are put off by job listings that focus more heavily on qualifications than the job, itself. This tends to send the message that your expectations of them get to be higher than their expectations of you. While this may seem logical, it simply doesn’t appeal to younger employees who want to feel like their role matters. 

Include a title as well as clear bullet points regarding the role. Do you expect this employee to work behind the scenes with their coworkers or out in public with the community? Are there specific projects they will work on or will they wear many hats?

The more direct and transparent your job listing is, the more candidates you’ll have to choose from.

Get in Touch With Your Top Candidates

You may have a few people in mind that would be perfect for the job. You may also receive applications from candidates who have great credentials but are likely applying to several different places.

If you want your top candidates to seriously consider your nonprofit, let them know! Send them a personalized email or give them a call. This will show them right off the bat that you will value their skills and provide them with individualized feedback if they accept the position.

Stand Out from Other Nonprofit Companies Who Are Hiring

The nonprofit sector is growing at a steady rate, making it more and more difficult to stand out from the pack. If you want to make it through the nonprofits hiring process with the best fit for the job, you’ll have to show what makes your organization different from the rest.

Let us help you boost your nonprofit by taking care of all of your accounting needs. To find out more about our services and pricing, contact us to schedule a meeting and we’ll get back to you as soon as possible.

Who Gets Paid In a Nonprofit? Nonprofit Employment Rules Explained

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Who gets paid in a nonprofit?

Turnover in nonprofits is around 19%, primarily due to low pay.

Nonprofits need to ensure that employees are paid fairly, following federal guidelines, but how does a nonprofit pay employees?

Read on to learn more about who gets paid in a nonprofit.

Who Gets Paid in a Nonprofit?

First and foremost, volunteers are not paid employees. Volunteers offer time and specific skills at no financial cost and are coordinated and directed by paid employees.

There are a few critical ways to determine who gets paid and how much they are paid. The determination of payment is through federal and state regulations on overtime and minimum wage. 

If you are asking yourself, “Can the founder of a nonprofit receive a salary?” The answer is yes.

The most important thing to consider with executive nonprofit salaries is that they are not excessive. The inurement clause of 501c3 salaries means nonprofit resources cannot benefit a private party.

How Does a Nonprofit Pay Employees?

When determining reasonable compensation for nonprofit salaries, you should consider a few things. These include:

  • Your organization’s history, purpose, and mission
  • Employee education, skills, experience, and pay
  • A comparison of similar jobs elsewhere

A great way to stay impartial and determine how and who gets paid in a nonprofit is with a board of directors. At a minimum, these voluntary members are an arbitrary source to help provide foresight, oversight, and insight.

How Do You Pay Yourself in a Nonprofit?

A qualified board of directors will help you pay yourself in a nonprofit, without the ethical dilemma of undercutting or overestimating your financial worth. Their oversight will provide the arbitration you need to determine 501c3 salaries fairly and appropriately.

As a founder or CEO, you can and most likely should be on the board of directors. As you’ll be working alongside several other people, you’ll still have the ethical accountability for determining who gets paid in a nonprofit. You will also have insight into how much each individual should be compensated for his or her expertise, beyond whatever concrete skills they bring to the table.

501c3 Salaries and Benefits

There are regulations on how you pay nonprofit salaries, but they can also offer similar benefits as for-profit companies. For example, you can offer a few things such as:

  • Vacation and sick pay
  • Medical and dental insurance
  • Retirement plans
  • Flexible work schedule
  • Educational assistance

Competitive benefits packages like these can help balance out your employees’ ineligibility for bonuses or stock options. 

Nonprofit Salaries: Getting Paid

You no longer have to ask, “Who gets paid in a nonprofit?” Instead, you can focus on paying employees fairly, as well as coordinating benefits packages that remain within federal regulations. Do not be afraid to refer to the IRS guidelines on 501c3 salaries.

For more information to reference on paying out nonprofit salaries or to learn more about information about financial operations in a nonprofit, please refer to our website today.

How to Run Fundraisers for Non-profit Organizations: A Financial Guide

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fundraisers for non-profit organizations

When it comes to fundraisers for non-profit organizations, they are especially important because it’s how you receive the funding to raise awareness for your cause. The key to fundraising is persuading people to believe in the cause you’re fighting for as much as you do.

If this is still proved to be challenging for you and your organization, there is no need to worry. We’ve designed this financial guide to help you run successful fundraisers for your cause and organization.

How To Run Fundraisers For Non-Profit Organizations

The point of a non-profit organization is to raise awareness about a particular cause that they believe is worthy of recognition. The only issue that organizations face is getting people to donate to the cause. However, there are some amazing tactics that your organization can implement to help raise that money!

Choosing An Engaging Theme

It is vital that when you decide to have a fundraiser, the theme of the event is exciting and engaging for all that come to the event. Not only is this helpful in creating more excitement surrounding your cause, but it will also persuade people to donate. If your event is engaging, they’ll want to attend more events hosted by your organization.

Connect With Sponsors

The best part about partnering with sponsors is that they can donate some of their products for your organization. The benefit that they get from partnering with your cause is free advertisement for their business. You get extra supplies to use during your event.

Sell Event Tickets In Advance

Giving potential donors the ability to purchase tickets ahead of time helps you to increase the number of people that attend your event. In today’s world, people enjoy buying things in advance so that they don’t have to worry about waiting in line or selling tickets at the door.

The other benefit of selling tickets in advance is that it increases revenue before the event taking place.

Create A Budget

It is essential that when you’re setting up a fundraiser, your organization sets a budget. Establishing a budget will keep you from overspending during the planning stage of the fundraiser.

It will also keep you from purchasing an excess of supplies, which results in wasted resources because they won’t be used. The budget will also set parameters with event vendors about what you’re able to spend in planning the event.

Ensure The Website Is Captivating

A website for your fundraiser should not only be informative; it should also be engaging. No one wants to visit a website that is bland and makes them feel like they are reading a school book.

Keep the website brief and to the point. This helps potential donors understand what your cause is and why they should donate to it.

Let’s Get Fundraising

Fundraisers for non-profit organizations can be challenging if you don’t know what goes into an engaging fundraiser. Remember that the hard work of an event is done before the night of the event.

If you need help when it comes to planning and conducting your non-profit organization successfully, please contact us via our website.

Keeping It Legal: Essential Fundraising Rules for Nonprofit Organizations

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fundraising rules for nonprofit organizations

There are currently over 1.5 million nonprofits registered in the United States.

Many of these are largely dependent on fundraising efforts such as public collections and sponsored events. While this might seem straightforward, the fundraising rules for nonprofit organizations can be quite strict.

If you’re in charge of a nonprofit, you’ll want to keep up with these rules to avoid getting on the wrong side of the law.

Read on as we tell you everything you need to know.

What Qualifies as a Nonprofit Organization?

You might think that any organization can set up, start donating money to noble causes, and call itself a charity. Unfortunately, from a legal standpoint, it’s not quite so simple as that.

Nonprofits enjoy very favorable treatment in terms of taxation compared to regular companies. This means that there are a lot of barriers to registration as a nonprofit. Otherwise, many companies would abuse the system to benefit from a lower tax burden.

In order for a company to qualify as a nonprofit, it has to pass what is known as the public support test. This means that it must receive a considerable portion of its income from the general public through one means or another.

However, the acquisition of this money is governed by many different rules. 

Fundraising Rules for Nonprofit Organizations

There are certain key areas in which fundraising rules must be closely attended to. Some of these relate to the ways in which no nonprofits collect money while others pertain to the tax situation of donors and whether a donation is deductible.

Below are some of the most important areas to consider.

Gambling

Many charities raise funds through various gambling events, such as bingo, raffles, and casino nights. This is permitted, but there are rules that govern this type of fundraising.

Most importantly, expenditure on such a gambling event is not considered a donation. Therefore, participants cannot write it off as a tax deduction.

There are also strict reporting and payment requirements that the charity itself must adhere to.

Registration

If you’re just starting up as a nonprofit, you will face certain restrictions until you become fully registered.

The most important of these relate to solicitation. In 40 of America’s 50 states, a charity cannot approach potential donors for money until they become registered as a nonprofit.

Registration requirements vary from state to state. 

Donor Names

Charitable donors reserve the right to anonymity. You should not publish their name in relation to their donation without their express permission.

Doing Charitable Work to the Letter of the Law

Fundraising rules for nonprofit organizations may be frustrating at times. However, they preserve the integrity of the charitable system and allow donors to be confident that the money they donate is going where they intend it to.

Ultimately, this results in a more productive system that sees more funds going to worthy causes.

If you’d like to know more about these rules or any other accounting requirements for nonprofit organizations, schedule a meeting with us today.

The Nonprofit Financial Stress Test

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Nonprofit Financial Stress Test

Is your organization equipped to get through difficult financial times? We have put together the nonprofit financial stress test to help board members and funders determine real risk factors for nonprofits.

We have outlined some of the financial metrics your nonprofit should be monitoring.

Financial Management

It’s important to ensure we have a solid system in place to account for and track various sources of revenues and related expenses. Some key considerations for sound financial management include:

  • Does the organization have an accounting system?
  • Does the organization have an annual audit?
  • Does the organization have the ability to track restricted funds within their accounting system?
  • Does the organization track their programs separately within the accounting system?

Sustainability

A healthy organization wants to ensure that our revenues are reliable and consistent. Ideally, we would be ensuring we have a plan to break even or create surpluses consistently. Here are a few considerations to ensure your organization is financial sustainable:

  • Does the organization have at least 25% operating reserves?
  • How highly concentrated is the organization’s revenue?
  • Does the organization has legal issues including liens or garnishments?
  • Does the organization have delinquent tax issues?

Liquidity

How quickly could an organization come up with cash to get through difficult economic times. Some things to consider:

  • Does the organization have at least 30 days of unrestricted days in cash?
  • Does the organization have a line of credit?
  • What is the debt to credit limit on existing debt?
  • How much of accounts payable is over 90 days?
  • How much of accounts receivable is over 90 days?

In addition to the considerations listed in the Nonprofit Financial Stress Test above, there are many other key metrics for determining whether your nonprofit can get through tough economic times. If you haven’t already, consider working with your finance committee to determine which of these make sense for your organization.

If you need help addressing some of your risk factors, let’s talk!

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Why Start a Nonprofit? Facts You Should Know

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why start a nonprofit

Is there a social cause you’re passionate about? Do you want to help the homeless population in your community find affordable housing? Are you passionate about caring for abandoned animals?

If you’re trying to find the best way to pursue your passion and do good, you might be considering starting a nonprofit organization. But why start a nonprofit if you can just volunteer or donate?

There are a variety of reasons to consider nonprofit status as you pursue helping your cause. For example, in 2017 alone, Americans donated over $410 billion to charities. 

Even a sliver of those donations could help you make a big impact. So, what do you need to know about starting a nonprofit organization?

Read on to learn about not for profit status and how you can get started. 

Understanding Nonprofit Status

First, what does it mean to be a nonprofit? Does that mean you can’t get paid?

You know that nonprofits are charities, usually looking to help solve a world social problem. But officially, they aren’t called charities, instead are nonprofits.

Becoming a nonprofit is actually an IRS status and has to do with taxes. There are a few different classifications to consider. 

501(c)(3)

A 501(C)(3) is a charitable organization like you are familiar with. They do charitable work, solving societal problems. 

This status means you will not pay federal income tax, you become exempt. If a nonprofit becomes a 501(C)(3), it also means they will be able to be exempt from paying their state and local taxes too as those often mirror the federal qualifications.

Another benefit of this status is the ability for donors to donate and get tax deductions. It incentivizes donors because they can get tax deductions from donating. Many donors won’t make donations to charities if they can’t get the tax deduction. 

The IRS says to maintain a 501(C)(3) status the nonprofit must remain true to its mission. So, if you start with the intent of feeding the homeless, then want to add helping underprivileged children go to college, you need to notify the IRS of your change in focus. 

It’s important to get legal advice and do your research. Getting this status can be complicated with many hoops to jump through. 

Don’t assume the IRS will be okay with you wanting the status and focus on the charity without actually having done all the appropriate documentation.

Not for Profit Vs. For-Profit

Again, let’s go back to the question of why your organization exists. 

A business is started to provide goods and services for profit. People pay a business and they make profits which they can use to operate, pay employees, and keep profits for themselves. This is called a for-profit model.

In a charitable nonprofit, the organization can make a profit. It can appropriately cover its expenses and employee costs, then all of the remaining profits can go back to the cause associated with the charity. Hence, the not for profit status. 

It should be noted that nonprofits must still remove taxes from employee wages, they are not exempt, only the nonprofit becomes exempt from corporate taxes. 

Advantages of Having Nonprofit Status

While it can be challenging to get a nonprofit status because of the documentation required, it is worth it. And while you might prefer to focus on your cause, do the good work, going through the steps to get the nonprofit is important for the success of your charitable organization.

Let’s consider some of the advantages of becoming a nonprofit. 

Tax-Exempt

One of the biggest advantages already touched on is becoming exempt from paying federal taxes. As a charitable corporation, you can avoid paying those corporate taxes. 

Many large for-profit companies will negotiate with cities and states to get a lower corporate tax rate. As a small organization, you don’t have that negotiating power. 

The charitable status allows you to avoid the corporate tax altogether. 

It’s essential to work with an accounting service that understands the unique features of a charitable organization so you protect your tax-exempt status. 

Public and Private Grants

When you have a formal charitable organization status, you will become eligible for more public and private grants. There are many philanthropic organizations that won’t give their grants to a group that doesn’t have nonprofit status. 

Formal Organization

While certainly you are passionate about your cause or you wouldn’t be delving into this nonprofit world, you need to separate yourself from it legally.

You want your organization to have its own status separate from you as an individual. 

When you become a formal organization, it puts the mission of your charity out in the forefront instead of this being about your interests. 

Create a board of directors who share your passion and bring something to the table that will benefit the charity. They might have social influence, contacts, or even resources they can offer the charity that helps it to achieve success. 

The old adage many hands make lighter work applies here because you use what they bring to help support the focus of the charity. 

Liability Limits

Again, while the ball may have started rolling as your passion project, you need to protect yourself. When you become an organized and official charity, you limit your personal liability. 

This is huge to protect and separate yourself from a potential legal dispute for the charity. Nobody imagines someone suing a charity until something unexpected goes wrong. You must protect yourself from liability. 

Creditors and courts would only have access to the profits under the charity window, instead of your personal assets with formal charitable status. 

If times get tough, it also protects you from being liable for the debts of the organization too.

Why Start a Nonprofit?

Doing charitable work is noble. If you feel passionate about your cause and want to pursue it as a charity that terrific. 

But why start a nonprofit? It not only helps your cause legally and financially but it protects you too. 

If you would like help getting started with the finance-related questions and organization for your charity, contact us today.

Can Nonprofits Survive Coronavirus?

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The coronavirus outbreak has left many nonprofits in the USA holding on for dear life, with mass layoffs, closures and many left destitute following lockdown measures. The biggest question on everybody’s lips right now is, “What happens next?” Can nonprofits survive coronavirus?

At this juncture, it seems that most effective way for nonprofits to transcend the effects of the crisis is to pull in aid wherever possible and work on short-term survival strategies to help get them back on their feet.

Coronavirus

What happened to nonprofit coronavirus relief from Congress?

In March 2020, the US Senate passed a $2 trillion relief bill to mitigate the effects of coronavirus on the economy. The Coronavirus Aid, Relief, and Economic Security Act (the CARES Act) was aimed at providing businesses, artists, and nonprofits with much-needed support during this time.

Initially, $350 billion from the fund was allocated to nonprofits. The funds provide Paycheck Protection Program (PPP) loans to help cover mortgages, payroll, rent and other essential expenses. As of Apri 17th, though, the Nonprofit PPP Loan Program has reached its cap and it remains to be seen whether more aid will be forthcoming.

Nonprofits need to stay proactive

The outside world may appear to have come to a halt, but within the confines of our homes or remote workplaces, it’s more important than ever to keep reporting up to date, to stay active, and to dream up as many contingency plans as possible to emerge successfully from the crisis.

Financial assistance is still available at national, state and community level if you seek it out. But the national backlog does suggest that starting small is the best strategy at this point. Smaller organizations are far more likely to receive the aid they need by proactively reaching out to their communities and local governments.

Creative thinking is the best thing anyone can do in times of crisis. And opportunity presents itself when you look for it. Google is your greatest ally when it comes to finding new sources of funding, but there are also more targeted approaches your organization can take.

The Government Benefits Center is a site that is worth checking on a regular basis. It provides an up to date newsroom and links to federal aid programs that could help your organization weather the coronavirus storm.

Big business is also stepping up to the plate and is likely to be far more receptive to pleas for help from legitimate nonprofits now than they traditionally would be, provided their financial situation allows it. Reaching out now can’t hurt, even if it’s just in the interest of finding support post-crisis.

Candid has compiled a comprehensive list of coronavirus relief funds that are helping charitable organizations out of the doldrums. These include several locally-based funds like the Greater Manhattan COVID-19 Relief Fund (GMCF) and Oklahoma’s 2020 Disaster Relief Fund, among many others. 

Help is out there. And it’s important to stay hopeful and proactive as you navigate the rough seas that the pandemic has created.

Let the crisis bring us together

A quote from author and hospice counselor, Kate McGahan is great food for thought as we see the world change before our eyes every day; “Deep within every crisis is an opportunity for something beautiful.”

Even in this extremely challenging period, opportunity does exist. There is potential to come out of the COVID-19 pandemic stronger and more prepared than we have ever been. And now, more than ever, nonprofits need to stay focused and summon every possible resource available to stay afloat. Can nonprofits survive coronavirus? I say yes.

About the Charity CFO

The Charity CFO is an accounting service and resource provider that is specifically focused on the nonprofit sector in the USA. Get in touch to discuss sound financial and accounting strategies to maximize your financial resources when you need them most.

Subscribe today for more informative and topical articles like this one or get in touch for more info. Follow us on Facebook and LinkedIn for regular updates. 

The Charity CFO Expands Leadership to Better Serve Clients

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Our firm has experienced tremendous growth over the last 4 years. The Charity CFO expands leadership to better serve clients including promoting two individuals and adding to two more staff accountants. We are now up to

Tim Hudson, CPA

Tim Hudson Promotion

In March 2020, we were beyond thrilled to make Tim Hudson our Chief Operating Officer. He will help me co-lead this business and work on training our team to be the best accountants we can.

Before this role, he helped me build the infrastructure we needed to triple the size of The Charity CFO in 2019 and serve countless clients. He started working with us 2 years ago and we immediately knew he was exceptional.

But check this out! Out of 75,000 people that took the CPA exam, only 133 people scored 95.5 or better. Tim was one of those 133! That’s the top 0.2% This legitimizes our claim that he is a bona fide genius!

We are so proud to have you co-lead this team and bring your brilliance to benefit the underdog industry we service. You could work anywhere but we love that you chose us and our clients! If you know and love Tim, congratulate him!

Brett LeClair

Brett was one of the first full-time employees we hired. Brett joined the firm as a staff accountant in pursuit of working with an industry and job that had more satisfaction and meaning. He is used to giving back to his community after spending time in the military, including deployments. After getting out of the military, he started building his accounting expertise in the gaming and casino industry. Wondering if he could apply those skills to something greater than himself…he was led to apply for a job with The Charity CFO!

Brett has a technical eye and commitment to refining processes for improvement. He has developed into one of our top accountants and was promoted as Accounting Manager in January 2020. Brett will oversee a team of staff accountants and serve as a financial thought leader for many of our clients.

We are thrilled to have you continue to grow in this company. You could have continued your service anywhere, but you chose to work with our team and clients!

The Charity CFO expands leadership to better serve our existing clients and make sure our new clients get the same level of service. In addition to Brett and Tim, we continue to expand our team of accounting staff. In March 2020, we added two new staff accountants to serve our newest clients.

We cannot thank our existing clients enough. The Charity CFO has grown organically through referrals and existing networks. Thank you so much for your support! If you have a colleague looking for a better accounting solution, have them contact me.

Tosha Anderson

Founder and CEO

Nonprofits Eligible for Forgivable Loans – CARES Act

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Nonprofits are eligible to apply for forgivable loans to help cover payroll and rent. Loan amounts up to 2.5x your monthly payroll. Here is more information on the CARES Act.

The passing of the CARES Act has now provided funding relief for small business and nonprofits. Here is a brief summary:

  • Nonprofits that have fewer than 500 employees an in operation on 2/15/2020 are eligible to apply.
  • Loan amounts is the lesser of $10M or 2.5x average monthly payroll expenses for the preceding 12 months.
  • Funds must be used for within the next 8 weeks: payroll, group health costs, interest payments on debt, rent, and utilities
  • Loan terms are 4% with 10 year maximum
  • NO COLLATARAL
  • NO PERSONAL GUARANTY
  • No payments are due for at least 6 months
  • Loans will be eligible for forgiveness.

How do I know if I’m eligible for forgivable loans?

What’s the catch? You must spend the money on eligible expenses. You must protect paychecks (keep your staff employed). You cannot get full forgiveness if you reduce FTEs or reduce compensation by 25% or more between now and June 30th.

How do I apply for the forgivable loans?

These loans will be processed through your local bank. If you have a banking relationship already, start there. Contacts we have had with the bank have said they expect the loans to be available around April 7th.

If you do not have your accounting in order or need help preparing the needed financial documents, let us know and we can help! You must be able to have a means to calculate payroll and other eligible expenses. You will also need a means to track these costs when you receive them in order to determine eligibility.

How much can I apply for?

Loan amounts is the lesser of $10M or 2.5x average monthly payroll expenses for the preceding 12 months. You should run a calculation on your preceding 12 months payroll to compute an average monthly payroll. You can request essentially 2.5 months of payroll expenses. If you are a seasonable employer, you should compute average monthly payroll for March, April, May and June of 2019.

 

In addition to nonprofits eligible for forgivable loans, the nonprofit industry is seeking additional support and resources through philanthropy partners. Some nonprofits will be affected more than others. Here is another great article to consider your response to the challenges you are facing.

COVID-19 Resources for Nonprofits

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In the throes of the global COVID-19 pandemic, organizations everywhere are feeling the effects of the economic devastation wrought by isolation measures, business shutdowns, travel bans, and markets crashing.  To assist their leaders, we have worked on pulling COVID-19 resources for nonprofits.

Nonprofits have been among the worst affected. In fact, the Nonprofit Times reported on 18 March 2020 that a coalition of the United States’ largest charities requested $60 billion in COVID-19 relief from Congress, in order for them to maintain operations. 

Amid the crisis, donations have diminished, and charities are finding that they are loose ends for support during this difficult time. But sadly, all there is to do at this stage is mitigate, given the current circumstances. To help, The Charity CFO has curated a few useful links and resources that may be of assistance.  COVID-19 resources for nonprofits include some of the following:

CDC

There is a lot of fake news out there. This being the information age, there is also a lot of misinformation around. But for legitimate and up to date facts on COVID-19; how to prevent it, how it spreads and everything else you need to stay informed, the Centers for Disease Control and Prevention (CDC) on cdc.gov is about as reliable a source as you are likely to get. 

WHO

Another reliable and educated source of information for all things COVID-19-related, is the World Health Organization (WHO). The WHO curates information from a global network of healthcare professionals via their web portal on who.int. 

The Nonprofit Risk Management Center

The Nonprofit Risk Management Center offers a variety of services to nonprofits, including workplace safety services, fiscal oversight and fraud protection, and governance assistance. Visit their website on nonprofitrisk.org.

Bridgespan

Bridgespan has set up a page for nonprofits as an easy reference guide to helpful resources such as various regional non-profit councils, educational resources, funder responses, and social distancing guidelines, to help ease the burden. 

Center for Disaster Philanthropy

The Center for Disaster Philanthropy is a nonprofit organization that was established specifically to help donors maximize the effectiveness of their funds in the event of a disaster – which COVID-19 certainly is. 

And while this may not necessarily be relevant to other nonprofits, their website is a valuable resource for reading material and case studies that could provide helpful insight on navigating the current crisis. 

Harvard Business Review

The HBR is a great source for articles like this one and more that are helpful for employers seeking to manage the coronavirus pandemic in the workplace. In the wake of the pandemic, HBR has set up an Coronavirus Insight Center, which collects informative articles and thought leadership about the situation. 

The Occupational Health and Safety Administration

The Occupational Health and Safety Administration (OSHA), an arm of the United States Department of Labor, offers regularly updated information for employers and staff about the ever-changing state of COVID-19. The site also includes resources that guide on preventative measures that can be implemented in the workplace. Visit their site on osha.org. 

The National Council of Nonprofits

The Council of Nonprofits remains an invaluable hub for information on updated policies, trends and highly relevant material relating to the COVID-19 outbreak. Visit their site for advocacy resources and useful material like this, to stay informed about the ever-changing nonprofit landscape.  

“This too shall pass”

Times may be tough. But as the old Persian adage suggests, it is temporary. And through understanding, cooperation and responsibility, organizations can and will bounce back. 

The Charity CFO provides specialized accounting services and resources to nonprofits, particularly in times like the present where responsible financial management is of extremely high importance.  If you need help with your accounting or applying for COVID-19 SBA funding, please connect with us here.

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