The Charity CFO

Tag Archive for: nonprofit

Common HR Compliance Mistakes in a Nonprofit

February 16, 2021/in CharityCFO/by Paul Cook

It is no secret: people drive the mission in a charitable nonprofit.

So, human resources are critical towards the overall success of a nonprofit. Staff are the key to turning your nonprofit into a successful one. But, people providing services to nonprofits can be classified as: employees, independent contractors, or volunteers.

Because employment laws and specifics are complicated, and subject to change, Tosha Anderson, CPA, of The Charity CFO sits down with Moses Balian, an HR Consultant at Justworks, in the latest episode of A Modern Nonprofit Podcast.

LISTEN TO COMMON HR COMPLIANCE MISTAKES IN A NONPROFIT PODCAST EPISODE HERE!

In this episode, Tosha and Moses discuss:

Understanding the difference between an employee and an independent contractor
Deciding whether, and how, you should pay interns
Creating lasting relationships with volunteers, and when you should pay them
Per diems
- When is it acceptable to pay freelancers or staff a per diem?
- What happens to hourly or salary when you initiate per diems with freelancers?
And much more!

Importantly, the conversation and tips on this version of A Modern Nonprofit Podcast is not intended to be legal advice. Rather, it is an opportunity to learn the endeavors that have worked for nonprofits and human resources professionals as a means of guiding your modern nonprofit to achieve greater success.

That said, The Charity CFO utilizes JustWorks to ensure its employees are correctly compensated. As Moses said in this podcast, JustWorks helps entrepreneurs and businesses grow with confidence. Your nonprofit can receive access to big-company benefits, automated payroll, HR tools, and compliance support — all in one place.

Consider JustWorks today and use The Charity CFO’s referral code, which you can access here.

You listened to this episode of A Modern Nonprofit Podcast. Now what?

Check out The Charity CFO on social media and on YouTube. As we strive to be a modern resource for modern nonprofits, our community is growing like never before. Follow and subscribe to our content for future episodes releases, nonprofit accounting tips and much more related to helping your organization achieve its best self.

Don’t forget to SUBSCRIBE to A Modern Nonprofit Podcast, too!

Interested in learning more about how our organization can best help your nonprofit achieve efficient accounting and bookkeeping practices, all at a price you can afford? Request a free consultation with us and let’s start your nonprofit’s journey to newfound success TODAY.

Crafting an Online Presence: A Guide to Nonprofit Social Media

February 1, 2021/in CharityCFO/by Paul Cook

More than 72% of adults in the United States have at least one social media account. These aren’t just people—they’re millions of opportunities for your nonprofit to have an impact on most of the country’s population.

If you’re looking to generate revenue for your nonprofit or spread awareness about a certain issue, you’re in need of nonprofit social media guidance.

We’re here to share exactly how to harness your nonprofit’s ability to make tangible progress using social media.

Nonprofit Social Media: The Basics

Before you even decide which platforms to use, you need to do two things:

Decide your goals (revenue, starting conversation, event attendance, sharing information)
Identify your audience

While your goals might be a combination of the above, and your audience may have a large demographic or age range, it’s important to strategize your social media before diving right in.

Below are a few categories your posts should fall into.

Hot tip: create a content schedule that posts different pieces of content. For example, you don’t want seven days in a row of community building posts. Mix it up by integrating informational posts, too!

Promoting Awareness

At the core of each nonprofit’s mission is education. Without sharing crucial information about the issue you’re combatting, your audience won’t see the value in the work you’re doing.

To get your audience engaged in the purpose of your organization, use statistics and infographics on Twitter or Instagram.

Build Community

Another way to generate a following on social media for nonprofits is to build a virtual community. Your followers want to feel like they’re a part of your movement, so let them in!

Do this by hosting live Q&As on Instagram or virtual forum meetings. Ask your followers to comment with a friend’s name or share their posts for more engagement.

LinkedIn is a great place to cultivate social networking for nonprofits, too, so try posting information there to gain a professional following. The cost of social network marketing is really just your time, so take a leap!

55% of the users who follow nonprofits on social media take action to benefit that organization. Considering some people use social media infrequently or just to share personal information, that’s a pretty great conversion rate!

Share Impact

Lastly, your followers want to know how your work is going. Be transparent and share statistics or stories with them!

Tell them how their donations are making your work possible. People respond well to stories, so get creative in how you share the information. Maybe have a volunteer of your organization or youth participant in your programming share the news!

Ideas for Nonprofit Social Media

Now that you have a sense of your goals and your audience, it’s time to get to it! Here are the top ideas for engaging social media posts that will get your nonprofit some well-deserved attention and donations.

Add Donation Buttons

Especially on Facebook and Instagram, it’s important to make it easy for your followers to donate to your nonprofit. Use Facebook’s charitable giving platform to show that you’re open to donations and encourage users to fundraise for you if they’re able.

Use Hashtags

Hashtags are the best way to get an organic following on social media, no matter the platform. Hashtags are like coding your content to get to the right people.

For example, if you’re sharing something for Giving Tuesday, use the #givingtuesday hashtag to show up in the feed. For more niche topics, use specific hashtags to get recognized, like #artmuseum, #omahaarts, or #donatenow.

Share Videos

If the rise of TikTok taught us anything, it’s that people love short-form videos. Some nonprofits have been taking advantage of this, and TikTok has even responded by adding certain features to support nonprofit fundraising.

Even if you’re not on TikTok, your nonprofit can still make short-form videos to educate the public on your mission.

For example, a museum can make a short video going through an exhibition or touring the building. A nonprofit focused on poverty alleviation can share statistics and footage from donation events or services they offer the community.

There are endless opportunities!

Develop a Style Guide

Using social media solidifies your brand. To build trust among your followers and any new communities, you have to have consistency across the board.

Even if you only have a couple of people managing your social media, develop a style guide with all the information someone new would need to create your content.

This could have a list of your researched hashtags, approved colors, and graphics, or resources for posting techniques. This will ensure that your voice and branding is cohesive for your followers.

Pro tip: Use a free design platform like Canva to keep everything branded and stored!

Use Stories

While many people enjoy perfectly curated content, it’s important to shake it up a bit by using stories on Twitter, Facebook, or Instagram.

Use stories to show the day in the life of an employee or use engaging stickers like polls. This allows you to learn more about your audience and create fun content!

Keep up With the Times

Even if you use a content calendar to schedule content ahead of time, make sure that you’re keeping up with your platforms in between. Like, comment, and engage with other content and accounts you follow.

This helps the algorithms in these platforms see you as a contributor to the platform in multiple ways, instead of just posting.

As the events of 2020 and early 2021 have proven, it’s crucial that you keep up with what’s happening in the world. You don’t want your content to seem insensitive, so make sure your calendar is easy to adjust and that you’re flexible in what you post.

Going All-In on Social Media

If your nonprofit social media is ready to take off, congratulations! Using social media to get people interested in your work and cultivate new donors is a huge step towards furthering your mission as an organization.

When you’re ready, use these nonprofit social media marketing tips to gain new followers and keep them inspired by your work.

If you’re looking for more information on how to make your nonprofit successful, check out the rest of our blog.

We help nonprofits strategize their operations and services to be as efficient as possible. Check out our services and contact us for more information!

The Charity CFO Launches Free Friday Webinar Series

January 21, 2021/in CharityCFO/by Paul Cook

Everybody loves Fridays, right?

For many of us working the 9-5/five days a week grind, Fridays are that final push towards the weekend. That said, Fridays can also feel like one of two ways based on your level of work or confidence: you’re stressful, or on cruise control.

That’s why our expert team of certified public accountants at The Charity CFO want you to make the most of your Friday. You should walk out of your nonprofit office knowing you did all that you could to be productive and proactive before the weekend. While we both know our work of helping better our communities never rests, it’s important to have time to better ourselves!

FAQ Fridays Webinar Description for Nonprofit Leaders and Professionals

So for a limited time, The Charity CFO Founder & CEO Tosha Anderson will be joined by the organization’s COO Tim Hudson for FAQ Fridays, a once-a-week morning webinar series to help nonprofit leaders, board members, volunteers and curious learners become more knowledgeable about today’s trending not-for-profit tips and tricks.

Topics Covered in The Charity CFO Free Friday Webinar Series

This webinar series will not just cover accounting, though. Tosha and Tim will cover topics like:

Year-End Compliance
Fundraising
Nonprofit Management Tips
Nonprofit Leaders Most Asked Questions
Best Bookkeeping Tools and Practices
And more!

The best part about this webinar series? It’s completely FREE! But make sure you register, because spots are limited. Mark your calendars as “Busy” on Friday mornings from 10:30 AM – 11:30 AM CST. Trust us, you won’t regret it.

Bring your questions for Tim and Tosha, and be prepared to take something away from our webinar(s) that you can immediately implement within your not-for-profit. Please share these webinars to your Facebook page and share with your professional network. Let’s build a community that we can grow and learn from.

Next Steps for Nonprofit Professionals

As always, I’m always available to chat if you recognize your nonprofit accounting isn’t where you’d like it to be, or if you know you can do better in respect to your bookkeeping practices. Check out our services and request a free consultation with Tosha to ensure your nonprofit can truly maximize its mission.

Nonprofit Governance and Working with Leaders

January 18, 2021/in CharityCFO/by Paul Cook

Working with leaders and being part of nonprofit governance is a valuable perspective to possess in the not-for-profit space.

There are many key players within nonprofit governance. Regardless if your nonprofit is a small organization or a larger nonprofit, each individual plays a critical role towards the success of a decision-making process.

Understanding the mechanics of the mission should be your ultimate goal as a nonprofit leader. Thinking about responsibilities, open communication and holding others accountable are just some of the points discussed by Deaconess Foundation Director of Partnership & Capacity Building Kiesha Davis, who joins The Charity CFO Founder and nonprofit accountant Tosha Anderson in this week’s episode of A Modern Nonprofit Podcast.

Listen to A Modern Nonprofit Podcast Episode 6: Nonprofit Governance with Kiesha Davis HERE.

Kiesha and Tosha cover many important considerations that you must know in order to challenge and grow his or her nonprofit board, including:

Helping your board understand their roles and duties
Strengthening your overall board through specific training and tips
The importance of board assessments- and why you must implement them
Utilizing volunteer board members and ensuring balance with strategy
And much more!

This is a great episode if you want to take your nonprofit leadership and internal processes to the next level in 2021.

Nonprofit governance is critical towards helping your board and nonprofit accounting.

Cultivating improvement in your board members will stimulate not only engagement, but success and opportunity for staff to support one another.

Who’s All in Episode 6 of A Modern Nonprofit Podcast

Kiesha Davis stewards a program of trust-based philanthropy with the Foundation to build the power to advance its public policy agenda for child well-being. She leads grant making within the foundation’s program portfolio, as well as provides capacity building support and relationship management with funded and prospective partners. Learn more about Kiesha and her organization here.

As Founder & CEO of The Charity CFO, Tosha Anderson committed her career to working with nonprofits across the United States, with a focus on providing CFO services to even the smallest nonprofits. After realizing an industry need for specialized accounting services with limited financial resources and an increasing pressure to keep costs low, the nonprofit enthusiast has helped hundreds of nonprofits achieve best accounting practices.

You’ve Listened to Episode 6…Now What?

If you have taken a look at your board, or realize that you are a struggling board member bogged down with accounting tasks when you know you should be focusing on other areas of your nonprofit, request a free consultation with our team of expert accountants today, and consider outsourcing your nonprofit bookkeeping.

Want to learn more about nonprofit governance and working with not-for-profit leaders?

The conversation’s only getting started. Check out our YouTube Channel to see episode clips and tricks.

Also, don’t forget to join A Modern Nonprofit Facebook Group, where you’ll have exclusive access to industry secrets and have an opportunity to conduct insightful conversations with professionals from across the nonprofit sector. Join and share this rapidly-growing community with your network.

How to Create Value-Driving Reporting Metrics

January 12, 2021/in CharityCFO/by Paul Cook

There are around 1 million nonprofits in the United States. Many of them struggle creating value-driving metrics.

The vast number of nonprofits shows how difficult it may be to find funding if you are considering a nonprofit. You may realize that in order to succeed as a nonprofit, you need to find resources and people who are interested in contributing to your cause.

Another study stated that around 30% of nonprofits failed after 10 years. With such a high risk of failure, it’s important for nonprofits to figure out how to be successful.

Part of nonprofit success is dependent on reporting metrics. Value-driven metrics are what current and potential funders might be interested in when looking to fund your nonprofit.

Here are some key reporting metrics you need to keep an eye out for if you want to attract funders. Ultimately, this is how you create value-driven reporting metrics.

Return on Investment: Creating Value-Driven Metrics

One of the most critical reporting metrics is the return on investments. This is your ROI and how much you are making from your nonprofit.

It’s one of the metrics you can look at and decide how successful it is and if it’s getting the funding it needs to make a difference.

This is where you compare the cost of raising the event and paying for catering and a place to host the event and then compare it to how much was actually raised. You may have broken even, made a profit, or had a loss.

If you want to calculate your ROI for a nonprofit, you would want to divide total costs by total funds raised. This gives you an idea of how much is making from your nonprofit.

It can also give your investors or funders an idea if your nonprofit is successful and attracting interest.

Average Gift Price: Creating Value-Driven Metrics

Another metric to look at is how much a gift is when someone donates to a nonprofit. You want to see how much each gift on average is worth, which gives you an idea of how much people are giving to your nonprofit.

Metrics are important to help guide your nonprofit and your bookkeeping.

You can also see how many gifts in a specific time frame. You may know the average price per gift, but you still need to know how often you are receiving these gifts.

You can also see how many gifts you are receiving from specific donors. This allows you to segment your donors and see what donors in a specific market donate to your nonprofit.

Conversion Rate: Creating Value-Driven Metrics

The conversion rate is how many people actually gave your cause based on how many you asked.

You want to see how many of your target markets is giving to your nonprofit if you asked them over email or set up a link online.

Another way to look at the conversion rate is to see how many people are giving based on your outreach. You want to see how many people are donating on social media, email, websites, referrals, and more.

You can see how many people actually clicked on your link and committed to donating to your cause. You can then measure your conversion rate and compare it to other nonprofit organizations.

Another valuable way to look at the conversion rate is to see what channels provide you the most donors. If you discover that some channels provide more contributors to your nonprofit, it may be best to focus more on your content and marketing on fewer channels that are more successful.

Website Visits: Creating Value-Driven Metrics

If your nonprofit has a website where people can choose to visit and donate, you need to make sure you have Google Analytics are some other measuring tool to see what’s happening on your website.

Funders who are evaluating your nonprofit may look at website visits and see how many people you are attracting to your nonprofit. They will want to see how many clicks you are generating and how many pageviews there are.

These metrics are important because you want to see if people are engaged with your mission and what you are trying to do in your nonprofit. The better your website is designed and the easier it is to use, the more likely people will hang around longer on your website.

You’ll also want to see if people are specifically clicking on your call to action. Also, you will want to see if they are donating to your cause. This will provide insight on if you need to change the call to action or there’s a general lack of interest in your nonprofit.

Email Marketing Metrics

The final value-driven metric you need in your nonprofit that can give you insight on how to improve any part of your nonprofit is email metrics.

If you have an email list and send emails asking people to donate to your nonprofit, you need to look at the open rate, the click-through rate, and how much you are earning per email.

You want to see if your subscribers are donating based on the emails you are sending. These metrics can give you insight into if you need to make any changes with your emails regarding a subject line or body content.

Now You Know Everything About Reporting Metrics for Nonprofits

Value-driven reporting metrics are a great way to analyze the success of your nonprofit. It can help you determine what changes need to be done. This way, you can attract more investors.

While these metrics can be overwhelming, learning can help you increase funding. You will be able to optimize ways to ensure the success of your nonprofit.

If you want help with your nonprofit, you can contact us here.

Program Outcomes: Measuring The Effectiveness of the Work You Do

January 11, 2021/in CharityCFO/by Paul Cook

Why is there so much confusion surrounding the term “program outcome?” That’s because nonprofit organizations are often measured by the effectiveness of the work they do.

But, donors, stakeholders, and members of your community may question the processes that not-for-profit organizations implement.

Program Outcomes: Measuring The Effectiveness of the Work You Do Featured in A Modern Nonprofit Podcast

In this episode of A Modern Nonprofit Podcast, Tosha Anderson of The Charity CFO invites Sarah Buek of The IllumiLab to discuss the benefits of measuring success and how mission-minded organizations can foster positive environments. The link to the latest episode is below:

LISTEN TO THIS EPISODE OF A MODERN NONPROFIT PODCAST HERE!

Many nonprofits are afraid to define and measure outcomes because the truth may reveal something a board member or nonprofit leader is afraid to know. While the work your nonprofit may do is hard to define, Sarah suggests many tips and tricks to help your organization find a method to measure your processes.

Some of the tips discussed on this podcast include:

Defining success and understanding failure
How nonprofits can take risk
Knowing how failure can be beneficial
Understanding your not-for-profit’s data
Balancing pressure from donors and from society at large
And more!

Communicating your nonprofit’s value and telling your story is so important in the world we live in. That’s why you must understand how to report and measure your organization’s processes. There is a lot of data at your fingertips, now it is time to learn how to gather, measure, and utilize it to help your non profit maximize its mission. Measuring the effectiveness of your organization is simple if you utilize program outcomes.

You don’t need technical expertise. In fact, you are already probably measuring a lot of the outcome measurement points you might think you are seeking. That’s why you need to listen to this episode and subscribe to future episodes of A Modern Nonprofit Podcast.

To learn more about Sarah’s work in the nonprofit sector and how her organization helps nonprofits increase effectiveness and efficiency, check out this website.

Do you realize one of the ways you can improve your nonprofit accounting is by hiring an expert nonprofit accountant and bookkeeper? Read through the services offered by The Charity CFO and request a FREE CONSULTATION. We can help you define nonprofit bookkeeping success and save you money.

And, did you enjoy this podcast? Keep the conversation moving by joining A Modern Nonprofit Facebook Group today. Converse with nonprofit leaders and enthusiasts, and get access to exclusive information from throughout the industry.

Tim Hudson Named Partner of Expert Nonprofit Bookkeeping Firm

January 6, 2021/in CharityCFO/by Paul Cook

Team work makes the dream work. And if your dream is to find an expert accountant to help you handle your nonprofit accounting and bookkeeping, then this exciting announcement is for you.

The Charity CFO, a boutique accounting firm that provides specialized nonprofit accounting and bookkeeping services, is pleased to announce the promotion of Tim Hudson to the position of Partner with the firm.

Tim currently serves as the organization’s chief operating officer and focuses on the promotion of innovation and transparency in the process as well as presentation of financial matters to all stakeholders. Tim is especially active and provides oversight to the service delivery and accounting functions of The Charity CFO.

Tim Hudson is now an active partner of The Charity CFO.

“We are delighted to have Tim become a Partner with the firm. Tim has shown himself to be an exceptional certified public accountant and The Charity CFO would not be where it is today without him. He will continue to play an important role in the overall growth of the company.” said Tosha Anderson, the firm’s Founder, Chief Executive Officer, and Managing Partner.

Tim has been part of The Charity CFO since 2018. Prior to joining the firm, Tim served various roles at Boeing Company, Ernst & Young, and the Principal Financial Group.

He also holds a Master of Accountancy and Bachelor of Science in Accounting with Summa Cum Laude honors, both from Truman State University. Tim lives in St. Louis, MO, with his wife, Sarah.

About The Charity CFO

The Charity CFO was founded in 2014 to offer accounting and thought leadership skills to nonprofit organizations. After realizing the need for specialized accounting services with limited financial resources and increasing pressure to keep costs low, The Charity CFO dedicated itself to working with nonprofits to educate stakeholders and implement best practices in operations as well as accounting.

Working with small to mid-sized nonprofits, ranging from start-up organizations to organizations fundraising more than $6 million per year, The Charity CFO operates to support causes that improve our communities. Walking side by side with nonprofits across the United States, the organization’s focus remains largely the most underserved segments of this niche including social services, arts, and education-based missions.

To learn more about The Charity CFO, visit https://thecharitycfo.com. To request a free consultation with Tim Hudson or Tosha Anderson, complete this brief form.

The Complete Guide to Nonprofit Startup Funding

December 15, 2020/in CharityCFO/by Paul Cook

We have created a complete guide to nonprofit startup funding. The guide is for both those looking for seed money to start a nonprofit and existing organizations that need additional funding. The topic is overwhelming to many, but considering the best nonprofit startup funding strategies is important.

Your dream can become a reality.

Funding is a key step for any charity, but this does not happen overnight. This blog will help you learn how to raise funds for your nonprofit so you can help your organization grow.

4 Types of Funding

We’ve covered four broad types of initial funding (or for existing nonprofits)

1. Start With Your Community for Nonprofit Startup Funding

What do nonprofits do? Nonprofits serve their communities. If you are looking for funding options, start in your community. Work colleagues, friends, and neighbors might see the potential benefits your startup could bring. Don’t be afraid to post calls for help on your social media, too!

Businesses or Community Leaders

Established businesses have cash to spare if they believe your idea can bring something positive to society and be profitable. Also, community leaders tend to be well-connected. They could assist you in reaching out to other people who will likely be interested.

You can present your startup to these leaders and ask them to become board members. This way, they can represent more active stakeholders in your organization. This action will also increase your access to individual donations. Residents are likely to trust these leaders, so they might donate more.

Other Organizations

You can also contact other organizations who provide similar services, or who would be interested in the benefit your startup will bring. For example, churches are likely to find interest in funding food relief centers or homeless shelters. Food providers might also potentially willing to donate some of their own stock to supply your nonprofit. It never hurts to ask.

Friends and Family

You may find it awkward to approach your loved ones for money. But, reaching out to them will give you a good starting ground. They are more likely to understand how passionate you are about the organization. They might be willing to share a stake in the success of your creation. Even if they don’t, they will be more open to sharing your initiative with their circle of friends, thus expanding your reach.

2. Access Grants for Nonprofit Startup Funding

As a nonprofit, you cannot finance your startup in a traditional way. You don’t get to sell items and use the additional money to uphold your organization, so accessing nonprofit grants is a great way for your startup to flourish. However, nonprofit startup grants are a possible option.

What exactly are nonprofit grants, and what do they do?

Nonprofit startup funding is important for your charity.

Well, when it comes to grants, the earlier you receive them, the better. Instead of waiting until you’ve officially started your organization to begin applying, make sure you have a plan. Start reaching out before your organization becomes fully operational because this will prevent future instability. It will also enable the eventual success of your nonprofit.

Here are two prominent types of grants:

Government Grants

There are many government grants out there. This fact will benefit you because there’s no end to the applications you can send out to finance your startup. That being said, make sure to go through the different grants and see which ones will suit your organization the most. To have a better understanding of available grants, you can look through grants.gov.

There are differences between federal grants and state grants. So, make sure to research the ones that are applicable in your area. Keep in mind that there are requirements to meet and contracts to negotiate. You should expect some initial hurdles!

Foundation Grants

Private foundations also provide nonprofit startup grant funds. It may be difficult to know where to begin, but focus on your state and start researching the available private grants in the area.

You may also need to approach the foundation and give them details about what you plan to do with your nonprofit. This will include your projected budget and the specifics of your business plan. If all seems to be suitable, they’ll happily finance your organization.

Note: Business grants are a possible fundraising strategy. Many for-profit businesses create corporate programs, grant options, or scholarships, available to nonprofit organizations. A different type of corporate funding, if you will.

3. Individual Donations for Nonprofit Startup Funding

Did you know that several nonprofits exist by relying on individual contributions from the public? For example, individual donations are the major driving force for the World Wildlife Fund.

To access public donations, set up fundraisers or auctions. Don’t be afraid to get creative. That’s what will draw people in. Fundraising is also a great way to tell people what your nonprofit is all about. This could improve the chances of more donations or public support. Events like bake sales to full-on carnivals, in a post-COVID world, would be useful.

4. Offering Memberships

Providing membership options is a suitable method to earn a fixed amount regularly. People who sign up will contribute to your nonprofit on a recurring basis. You won’t have to worry about finances drying up.

Offering memberships do not apply to all forms of startups. If you have an idea about what to provide to your members- for example, exclusive access to events or information — then this may be a viable funding option.

Tips for Finding Funding Sources

There are several ways to show your organization is ready for funds, improving your chances to bring in more (and do more for your cause).

Compile relevant programs: Doing the research work of gathering all relevant programs (nonprofit grant programs, for example) helps determine the possibilities.
Clearly convey your nonprofit projects: Whether it’s through memberships, individual donations, grants, or other funding methods those giving will want to know about your track record and how the fund will be used.
Show transparency: Keeping accurate track of how dollars and donations are utilized gives people a sense of trust. Accurate financial record-keeping also mitigates issues with governance. Working with a qualified team, experienced in nonprofits, helps immensely.

Nonprofit Startup Funding Can Be Easy

It may seem scary at first. But, you have many options to access nonprofit startup funding. From grants to memberships, you will benefit from researching. You will also benefit if you try out as many options as possible.

Why should you believe in your dreams? If you are compelled to start a nonprofit, use this as your selling point. Helping your community is a great mission to guide your organization. There will always be others who see the potential in your charitable acts.

For more nonprofit help and outsourced bookkeeping assistance, check out our services. This is also a very popular topic in a Modern Nonprofit Facebook Group, which you can join TODAY.

Nonprofit Taxes & the IRS: Ep. 2 of A Modern Nonprofit Podcast

December 11, 2020/in CharityCFO/by Paul Cook

A Modern Nonprofit Podcast is back for Episode 2. Tosha Anderson and Ben Golden of Golden Tax Relief discuss nonprofit taxes and the IRS!

But before we dive in, if you were lucky enough to donate to a charity this year, The Charity CFO thanks you. As expert accountants for nonprofits, our team knows that contributions of any kind are important. There is a lot of money involved in the nonprofit world, especially on the business side!

A Modern Nonprofit Podcast Ep. 2 covers nonprofit taxes and dealing with the IRS.

Nonprofit Taxes and the IRS Key Points

Aside from payroll, the leaders agree that compliance is the key. When considering nonprofit taxes, Tosha and Ben discuss the responsibilities of nonprofit board leadership. They also talk about why you must have plans for payroll, reimbursements, and compensation purposes.

SUBSCRIBE, THEN LISTEN TO A MODERN NONPROFIT EPISODE 2: NONPROFIT TAXES AND AVOIDING TROUBLE WITH THE IRS FEAT. BEN GOLDEN OF GOLDEN TAX RELIEF

Administrative work is important for nonprofits, but if you are wondering if a nonprofit gets taxed, then listen in as Ben talks about how nonprofits can save money with taxes.

If you haven’t already, listen to Episode 1 of A Modern Nonprofit Podcast here. Tosha talks with Eileen McGhee of Veer Up to talk about how to reduce racism, be a diverse organization and promote a positive nonprofit culture.

Additional Links

Questions about the IRS and your nonprofit? The conversation continues at A Modern Nonprofit Facebook Group. Here, professionals collaborate to talk about industry trends and issues. Don’t miss out.

Additionally, if you are seeking help with wage garnishes and delinquent tax returns, check out Ben Golden at Golden Tax Relief.

Lastly, forget to Subscribe to A Modern Nonprofit Podcast for future episodes, and make sure to share/tag us on your Twitter, Facebook, and additional social media feeds!

Taking Control of Your Nonprofit Finances

December 8, 2020/in CharityCFO/by Paul Cook

Today, you might feel there are few things you have control over. Fortunately, taking control of your nonprofit finances is not one of them.

Since the novel COVID-19 pandemic has forced the world into a remote economy, nonprofits face a time of financial transition.

91% of global nonprofit organizations suffered operational damage in the crisis. This 91% is an improvement from the 96.5% recorded in March.

Waiting for normalcy is only a long-term solution that many organizations can’t afford. However, learning how to transition into a new normal can help your organization get back on its feet.

Understanding how to manage your finances is the best path to regaining stability. Here’s how you can start taking control of your nonprofit finances sensibly and effectively.

Taking Control of Your Nonprofit Finances

It’s important to consider how money transfers through different hands within your organization.

A board of directors should oversee general operations. An added financial branch of operation can still go a long way. Delegate financial tasks to a specific individual or group of individuals. That way, you centralize the information handled in the accounting process.

Along with financial managers, you can outsource your accounting tasks. Getting professional advice is a much more efficient way to get your finances in order.

Nonprofits that manage finances internally can appoint at least 2 or 3 people to manage. They can be direct points of contact between the organization and the finances.

You can also assign different functions to those in your financial branch. One member can manage executive functions while supporting members manage secondary tasks. This structure promotes organization, accountability, and transparency within your financial branch of operation.

Multiple Streams of Funding

Adding more streams of funding to your organization is essential to financial balance. Receiving support from more than a few sources adds to the revenue to collect.

It also adds more financial security. Instead of relying on one funding source, you open up more opportunities.

Collective revenue from various sources adds up and gives you more stability. If one stream dries up, you’ll still have the flexibility to focus on others in times of need.

Relevant Streams of Funding

While you grow more streams of funding, you should also make your sources relevant to the times. Prior to the pandemic, common sources of funding for nonprofits included:

Sponsorships
Grants
Programs tuition
Fundraising Events
Donations
Subscriptions

Nonprofits that focus more on in-person fundraising should consider more reliable funding sources.

Instead, there are more reliable, contactless methods of funding. These include sponsorships, grants, donations, and subscriptions.

Sponsorships and grants often involve some research and individual outreach. The scope of their awarding processes also requires waiting periods and gaps. Still, they’re useful sources to consider for long-term operations.

Tracking Expenses and Profits for Taking Control of Your Nonprofit Finances

Multiple streams of funding ensure that money flows into the organization.

This is a two-way stream. It’s possible for cash to flow out of an organization at a high rate.

Tracking the expenses shows you funds entering and exiting the budget. Your financial branch tracks expenses and two-way cash flow. The board of directors advises the active spending goals and habits.

The board and financial managers should meet on a regular basis. Your budget and the size of your organization should determine how often you meet.

It’s also helpful to automate some of the tracking process through software. You can use tools like Quickbooks or GetApp. Tools like these will allow you to begin taking control of your nonprofit finances.

These have specialized features for nonprofit organizations. They can also help you with the distinction between nonprofit and commercial operations. Many softwares also include tax forms and documents. You can use these to help your organization with legal compliance guidelines.

Basic Budgeting

Your organization should use budgeting to inform the other areas of financial management. Here are two basic budgeting tips to follow.

Budget Structures

Each nonprofit should have monetary goals relative to their operational goals. There are three main budgeting structures every nonprofit should know:

Surplus budget
Balanced budget
Deficit budget

These structures are often used in government or commercial spending. They’re useful guidelines to help you estimate profit margins and losses.
When your fundraising efforts exceed expectations, you have a surplus budget.

A balanced budget indicates the expenses are expected to meet profits. In contrast, a deficit budget means that expenses exceed profits. So, there’ll be a margin of lost funds to recover.

Your total budget operates within these structures. As you continue to fundraise, you can determine which type of budget your organization currently operates on.

Budget Timelines

A budget should also include a realistic timeline for specific goals. Be sure to include important landmarks in the year where you need to measure performance.

You can split the fiscal and calendar years into quarters to make goals more realistic. Then expand to an annual timeline to measure more long-term growth.

Board meetings should also align with your timeline of goals. Or, you can increase their frequency to keep up with constant changes.

Taking Control of Your Nonprofit Finances: Outlining Policies

The most important step in financial management is documentation. This includes recording tangible copies of your budget, funding sources, and financial goals.

However, you should also consider implementing or updating your operational policies. This includes spending and investment policies.

Updating your policies may crossover with budgeting. Typically, a budget tends to represent your organization in numbers. A policy shows the larger investment potential.

The content in your policy may also intersect with legal guidelines. For nonprofits, these guidelines often determine eligibility for certain funding opportunities or methods.

Manage Your Nonprofit Finances Now

Financial health is an essential part of any nonprofit organization. We can show your organization how to weather the storm and become financially resilient.

With our team of experts, you can get professional accounting and bookkeeping services. We’ll tailor your financial services to the needs of your organization.

To begin taking control of your nonprofit finances today, contact us, and request a meeting.

Create a Nonprofit Operating Budget

December 4, 2020/in CharityCFO/by Paul Cook

Are you looking for new ways to keep up with the hustle and bustle of your nonprofit organization? Have you noticed that the bookkeeping is starting to slip by the wayside? If so, then you need to create a nonprofit operating budget and learn how to manage it effectively.

Doing so can help ensure that you’re staying on task. you’ll find yourself with more financial peace of mind after knowing that there’s a specific purpose for every dollar you raise.

See below for an in-depth guide on how to create a nonprofit operating budget to get yourself back on track. Be sure to consider everything that’s listed.

1. Set Aside Time with Your Team to Manage your Budget.

Perhaps this is the first time that your organization will be addressing the budgetary needs that you have. Maybe it’s been so long since you kept a budget that you need to reassess where you are currently.

No matter the case, it’s important that you set aside time to hash out a new budget with your team. Find a time period where at least one person from each department can offer their input.

For example, if you have an in-house marketing coordinator, be sure to clue them in on your new budget to ensure your marketing needs are being met.

You’ll find that a great deal of this meeting will be compromised. Don’t get discouraged if it feels like you can’t get anywhere at first. It’s all about compromise. Every department will feel like their side of the operations deserves a higher portion of the budget.

If you need assistance with building your budget, then you can also decide to outsource it to a nonprofit accounting and bookkeeping service. If you need help creating a nonprofit operating budget, The Charity CFO is an expert accountant for charities.

2. Gather Data

You might be wondering to yourself “where am I supposed to come up with the numbers? How would I know how much to budget for marketing, events, fundraising, and so on?”. By looking at the previous data.

They say business is all about learning from the past; building a nonprofit operations budget is no exception.

Gather up all your bank statements from the checking account you use for your nonprofit’s finances. This might be overwhelming at first, but take a deep breath and give yourself a few weeks/months to comprise all the data (if necessary).

Decide which expenses fall under the umbrella of the different departments of your business, then add them up on a month by month basis. Did you spend more than you raised in previous months? Are you overspending in one area of your organization?

If need be, sit down with each department chair individually to assess the money you spent and the areas in which you could cut costs. This will give you a better idea of the amount you can set for that department’s monthly budget.

Be sure to get input from your board. This budget is a collaborative effort. Accounting for nonprofit organizations can be tricky, so we encourage you to utilize the resources and information we offer!

3. Plan Your Activities

Nonprofits are all about the activities and events that you both attend and organize for your faithful following. It can lead to some tremendous fundraising opportunities.

However, too many nonprofits design their budget without considering those activities first and foremost. They’re then thrown out of whack when they can’t find the financial room to either attend the event or put on an activity that represents their brand in the right light.

Start by scheduling your activities as far out as possible (preferably a year out). How much money needs to be allocated to those activities? Which ones take priority?

As much as it might hurt, this is a great opportunity to cleanse your schedule of any activities that you aren’t seeing great returns from.

4. Properly Estimate Income

Planning income and expenses for a nonprofit can be challenging, but it isn’t impossible.

First, be sure to list your estimated income if different tiers of risk. This should be prioritized from “least trustworthy” to “most risky”.

For example, say you organize 4 groups for your income sources: group 1, group 2, group 3, and group 4. You might decide that people listed in group 1 are “most trustworthy”, meaning they’re most likely to donate generously and often.

Let the data guide you while you estimate this part of the budget. Put your most frequent sources of funding into group 1, the least frequent in group 4, and so on.

5. Put a Job to Every Dollar

Disclaimer: the job of your budget isn’t to primarily track the money that you spend. It’s to assign a job to every dollar that you raise for your cause.

For example, (for the sake of simple math), say that you budget to receive $1,000 in funds for this upcoming month.

You might consider putting $200 towards donations, $500 towards operations for the month, $200 towards activities and events, then have $100 leftover. This is the wrong way to do it.

You need to budget for all $1,000 in funds that you receive, down to the very last penny. If things change (which they often do), then your budget can be adjusted. Your ability to create a nonprofit operating budget also involves some critical thinking!

What You Can Do Today

Now that you have seen several effective steps that you need to take when building a nonprofit operating budget, it’s time for you to do so the right way.

Be sure to read this article to learn more about how to raise money with virtual events for your nonprofit organization.

And for more inquiries on our ability to be an expert accountant for nonprofits, be sure to reach out by requesting a meeting and we will be happy to discuss our bookkeeping services.

A Modern Nonprofit Podcast: Diversity and Inclusion (S1E1)

December 1, 2020/in CharityCFO/by Paul Cook

Nonprofit enthusiast and Founder/CEO of The Charity CFO Tosha Anderson is proud to announce the launch of A Modern Nonprofit Podcast. Powered by The Charity CFO, this podcast will take listeners on a journey, as Tosha and her guests talk about relevant topics in the nonprofit sector.

Each episode will feature a lighthearted and informative discussion. Tosha Anderson said A Modern Nonprofit Podcast is a tool like no other for nonprofits of all shapes and sizes.

“While paving my path and finding my footing in life, I have found my true purpose of helping nonprofit organizations do the same,” said Tosha. “Through this podcast, the ability to connect and help so many individuals will only grow, which will make the nonprofit community as a whole stronger. I am looking forward to bringing on industry leaders and participating in conversations that will help my listeners evolve their nonprofits.”

In the inaugural episode, Tosha sits down with Veer Up founder Eileen McGhee to talk all things diversity and inclusion. The two experienced leaders discuss how to define words like diversity and inclusion, then conduct an in-depth conversation about how nonprofits can truly be open to all ideas and views.

This podcast is designed for nonprofit leaders and listeners alike. To truly experience A Modern Nonprofit Podcast, you must do the following:

Listen to the first episode of A Modern Nonprofit Podcast HERE. Don’t forget to subscribe on your favorite streaming service!
Head to The Charity CFO YouTube and subscribe to watch full episodes and snippets from the podcast.
If you’re on Facebook, search “A Modern Nonprofit Facebook Group” to request access to the already-growing online community, where nonprofit leaders discuss strategies, share tips and converse about personal experiences. All are welcome!
Follow The Charity CFO on Twitter, Instagram and Facebook for the latest episode updates, nonprofit information and deals related to nonprofit bookkeeping and outsourcing for your accounting.

Curious as to how The Charity CFO could help your nonprofit in terms of financial accounting, bookkeeping or outsourcing? Check out what we have to offer you and request a meeting with us today.

The Importance of #GivingTuesday in 2020

November 30, 2020/in CharityCFO/by Paul Cook

Despite the cold temperatures, themes during the winter months are warm and optimistic. For example:

Thanksgiving: A holiday focusing on gratitude and appreciating what one has.
Christmas: A time spent feeling grateful for being with and giving to others.
Giving Tuesday: wait, you might ask, what is that?

It’s completely okay if you don’t know the specifics, or haven’t heard of, Giving Tuesday!

Giving Tuesday is a “global generosity movement unleashing the power of people and organizations to transform their communities and the world,” according to its website. And everyone can get involved! If that’s by donating to a charity, volunteering for a nonprofit, or performing random acts of kindness, you can do good this year.

Giving Tuesday is very important for nonprofits because it is a time for charitable donations and significant contributions from the greater public. We at The Charity CFO are proud to work with hundreds of nonprofits every day, and you can view our scope of work on our website here.

This Giving Tuesday, give if you can to the organizations that help make our communities great. With the COVID-19 pandemic, there has been no greater need for nonprofits to continue to help those who may be struggling.

Is your nonprofit hoping to find financial balance after Giving Tuesday? Schedule a time to talk with The Charity CFO and book a FREE STRATEGY SESSION here.

How to Hire a Freelancer as a Non-Profit

November 23, 2020/in CharityCFO/by Paul Cook

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!

10 Project Management Tips Every Non-Profit Manager Should Know

November 6, 2020/in CharityCFO/by Paul Cook

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.

The Different Types of Audit Services and What They Mean For Your Nonprofit

October 12, 2020/in Accounting, Audit, Audits/by Paul Cook

Are audit services on your mind as a nonprofit organization leader?

Do you run a non-profit and worry about your fiscal fitness? Are your productivity and scalability as efficient as it could be? If you’re concerned about these things for your organization, then you should consider an audit.

As a non-profit, you owe it to your donors to stay as lean and as efficient as possible. And in order to maintain your NPO status, you need to keep good record books. So enlisting outside audit services can be just what you need to be successful.

And don’t worry if the mention of an audit sent a shudder down your spine. We get it, nobody likes the idea of getting audited, but outside of the IRS, an audit can be a valuable tool to assess your current situation and look at the areas that can be improved.

If you’re concerned about how to fully utilize an audit, keep reading. We’ve got you covered on the different types of audit services as well as how they can benefit you and your organization.

Four Different Types of Audit Services

Nobody likes the idea of an audit. However, when it comes to maintaining the financial health of your nonprofit business, audits are necessary. An audit can take less time if you can keep your financial paperwork organized and thoroughly documented.

There are several different types of audits that are done by different people and will give you different outcomes based on your goals. Some audits are done internally while others are external and require an outside point of view.

When many people think of audits they think of accountants scrutinizing your finances. But operational audits are also just as valuable to your organization.

1. Operational

An operational audit will look objectively at the systems and functions of your business. The audit will assess your business’ systems and productivity as well as your available resources. They will then make their recommendations for how these areas can be improved and what additional resources will be necessary to make the changes needed.

Operational audits can look at your systems and processes as well as your various departments; these can include IT, HR, and staffing. Additionally, if you find your organization continually missing your goals and objectives, then an operational audit can shine a light on this. You can learn why these goals weren’t met and what can be changed to start meeting your goals and objectives in the future.

2. Financials

A financial audit will evaluate your current financial situation for your business or nonprofit organizations. After their complete assessment, they will give their recommendations for how you can improve the fiscal health of your charity.

They will look at your accounting records as well as your financial reporting of accounts receivable and payable. So, it is vital to keep good records so you can get an accurate assessment of your financial situation within your nonprofit.

If you want your nonprofit to help as many people as possible, you must be fiscally responsible year after year. If you find your organization continually behind with your accounting then the help of a CPA can benefit your company.

A professional bookkeeper will help you keep your records so that you never again dread another audit. Audits are helpful and beneficial tools for your company. And having good records can make them smooth and seamless which will allow you to learn from them rather than stressing out about getting them the right records for their audit.

3. Internal

An internal audit is usually done by and for the management of your company. This form of assessment gives light to how your company can make improvements and grow in the company years.

Regular internal audits are important to shine lights on possible areas of growth within your company. It doesn’t do your business any good to continue to do things as they’ve always been done when there is a better way of doing it.

In order to truly grow your company and help more people with your non-profit, you need to continually be open to new ways of doing things.

4. External

An external audit is done by a neutral third-party person or group looking at your business or nonprofit from an outside point of view. These audits are just as important as internal audits and will provide your company with a much-needed alternate viewpoint.

Additionally, by conducting an external audit you open your business up to learning about possibly blind spots that you hadn’t noticed before. This external point of view is vital to growing a healthy business so don’t shy away from it. It can be difficult to ask the opinion of someone outside of your organization, but it is imperative to healthy growth.

By bringing in an external CPA to look at your records regularly you can ensure that your charity will be able to help as many people as possible. While it can be difficult to bring in an outside group of people to dive into your finances, this is a vital step to providing valuable insight and reassurances that you’re operating a successful business.

Keeping good records in accounting software is vital to quick and easy audits. Additionally, having a bookkeeper can improve your audit experience. By having a professional help you keep good records in an organized manner can help you to have a better audit.

Bottom Line: Keep Your Business Financially Healthy

As you can see an audit doesn’t have to be scary. In fact, it can be a healthy process to learn where your non-profit can improve over time.

And enlisting the help of external audit services can be a great way to take an objective look at your non-profit. You’ve put your whole heart and soul into helping those who can’t help themselves. Don’t risk everything by not keeping your organization running efficiently and financially responsibly.

So, if you think that an audit would be a good experience for your non-profit, then find a CPA you can trust to come and take an objective look at your company today. With the help of an experienced professional, you can ensure that your non-profit will be around for years to come to help many more people.

So, if you’re looking for help on anything from filling out your Form 990 to updating your bookkeeping, then let’s chat. We offer affordable services and can help you set up your non-profit for success today.

7 Common Fundraising Mistakes to Avoid for Nonprofits

September 22, 2020/in CharityCFO/by Paul Cook

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.

5 Reasons to Consider Outsourcing for Nonprofits

August 31, 2020/in Nonprofit/by Paul Cook

Have you been feeling overwhelmed with the list responsibilities that you may have? Do you and your staff feel like you’re putting on too many different hats each day, some of which you have no experience with? If so, then you need to consider outsourcing for nonprofits.

Outsourcing is simple: it provides your nonprofit with the opportunity to obtain the experienced help it needs within sectors such as accounting, operations, and IT.

All without paying for an in-house employee.

There are many different perks of outsourcing for your nonprofit. Be sure to see below for more details on the benefits of outsourcing different needs that your nonprofit organization has.

1. Less on Your Plate

As the owner of a nonprofit, you might have to don many different hats throughout each workday.

At times you could be performing executive duties, operations, accounting, IT, marketing, and more. It’s hard to balance all of these duties, and on top of this, delegate them as well as provide these tasks with the attention that they deserve.

In fact, the more that find yourself balancing them all, the less effective they’ll all be. That’s when it’s helpful to outsource certain responsibilities to give yourself a free hand.

For example, some of you might consider accounting to be a weakness for your nonprofit organization. Turn that weakness into a strength by outsourcing those needs to a professional accounting service for nonprofits.

Now that your accounting is in the hands of a trusted and experienced professional, you can maximize your time on things like operations and marketing your brand.

2. Professional Expertise

One of the hardest parts of running a nonprofit is feeling like you’re doing the organization a disservice with your inexperience.

If you don’t have a volunteer or staff member with expertise in a certain area, such as accounting, then your nonprofit might suffer as a result.

By hiring a professional accounting service, you’re getting your brand in connection with one of the best in the business. They’ll have experience with bookkeeping and accounting, which will help your nonprofit put a name to every dollar you receive.

Some accounting services also have certified public accountants (CPAs) that are well-informed on the obstacles that a nonprofit faces.

They can audit your current accounting set up to protect your organization from fraud and improve your internal controls and cash flow.

3. Reduced Costs

At times, it can feel like your nonprofit’s growth is at the mercy of whatever funds you receive from donations. There will always be a need to reduce costs in as many different ways as you can.

One of the largest costs that your nonprofit can undergo is hiring an in-house employee for your needs. Statistics have shown that paying an employee a $50,000 salary can actually cost you anywhere from $75,000 to $100,000 a year.

“Outsourcing can be a tremendous option…it can offer you the chance to learn from experienced professionals that want to see your nonprofit grow and thrive.”
The Charity CFO, LLC

Any time that you have an issue, just bring it to their attention and they can offer you several solutions on how to handle it.

Even though you have a significant need to hire an in-house accountant, it might not be the answer. Instead, outsourcing allows you to get access to an experienced professional without paying the true cost of hiring an employee.

There’s no necessary onboarding, no training that needs to be done. Simply ask around for different quotes on the service, find one that gives you the highest return on your investment, then hire them.

4. Thorough Explanation of Solutions

Plain and simple: you’re looking to outsource because you need to save money but get access to experience. You need someone that won’t just do the job, but can help you understand it for future reference.

Outsourcing can be a tremendous option for that. It can offer you the chance to learn from experienced professionals that want to see your nonprofit grow and thrive.

They can put difficult accounting aspects into layman’s terms that you can understand. That way, you’ll have a better idea of how to match donor’s requests and delegate donations that don’t have specific requests to them.

Initially, you’ll send an email to the accounting service telling them about some of the major issues you’re having. From there, they’ll schedule a time to sit down and discuss ways the service can help you resolve those problems.

Outsourcing allows your nonprofit to grow business relationships with experienced professionals that have your best interests in mind. Not just an in-house employee that’s looking to collect a paycheck.

5. Easy to Scale

Five years from now, your nonprofit isn’t going to look the same as it does today. It’s going to grow and expand in ways you never imagined.

If you hire in-house employees for your needs, then you’ll have to add more to your team to keep up with the growth. However, by outsourcing your accounting needs, you’re supplying your organization with a service that can grow with you.

Outsourcing is very scalable. The more needs that you have, the more services they can offer to meet them.

They’ll be able to help your company adjust to the growth in your budgeting, payroll, donor requests, fundraising, billing, and reporting. They can also protect your organization from fraud while it grows.

Consider Outsourcing for Nonprofits to Help Your Organization Thrive

Now that you have seen several benefits of outsourcing for nonprofits, you must find the right accounting service to join forces with.

Are you looking to model your nonprofit after the best? If so, then read this article for more information on the 7 characteristics every successful nonprofit organization has.

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

Can Nonprofits Survive Coronavirus?

April 24, 2020/in CharityCFO, COVID-19 Response/by Paul Cook

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.

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 17^th, 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.

Tag Archive for: nonprofit

You listened to this episode of A Modern Nonprofit Podcast. Now what?

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Promoting Awareness

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Ideas for Nonprofit Social Media

Add Donation Buttons

Use Hashtags

Share Videos

Develop a Style Guide

Use Stories

Keep up With the Times

Going All-In on Social Media

<img decoding="async" class=" wp-image-29970 alignleft" src="https://thecharitycfo.com/wp-content/uploads/2025/04/nonprofit-annual-report.jpeg" alt="nonprofit annual report" width="276" height="184" />FAQ Fridays Webinar Description for Nonprofit Leaders and Professionals

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Return on Investment: Creating Value-Driven Metrics

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4 Types of Funding

1. Start With Your Community for Nonprofit Startup Funding

Businesses or Community Leaders

Other Organizations

Friends and Family

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Foundation Grants

3. Individual Donations for Nonprofit Startup Funding

4. Offering Memberships

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Additional Links

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Multiple Streams of Funding

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Tracking Expenses and Profits for Taking Control of Your Nonprofit Finances

Basic Budgeting

Budget Structures

Budget Timelines

Taking Control of Your Nonprofit Finances: Outlining Policies

Manage Your Nonprofit Finances Now

1. Set Aside Time with Your Team to Manage your Budget.

2. Gather Data

3. Plan Your Activities

4. Properly Estimate Income

5. Put a Job to Every Dollar

What You Can Do Today

Why Hire a Freelancer?

What Are Freelancers?

Are There Any Cons to Hiring a Freelancer?

1. Identify Your Needs

2. Create a Job Ad

3. Search Freelancer Websites

4. Pay Them for a Test Service

5. Ask to See a Portfolio

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

1. Discuss the Scope of the Project

2. Figure Out How to Resolve Any Problems

3. Have Expectations

4. Know the Risk

5. Anticipate Any Changes

6. Help Others Succeed

7. Have Mini-Goals

8. Be Organized

9. Have the Right Tools In Place

10. Know Your Limit

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3. Internal

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