Recent News & Blog / Nonprofit
Combatting negative public perceptions of your nonprofit
Although Americans trust philanthropic organizations more than government and businesses, almost a third believe not-for-profits are on the “wrong track,” according to a 2023 survey. But there are ways to manage public perception to help your nonprofit weather unexpected crises.
Nonprofits: Weighing potential risks and returns of alternative investments
Alternative investments may appeal to your not-for-profit because they can offer higher long-term performance than traditional securities do. But before your organization allocates investment dollars to hedge funds, private equity or cryptocurrency, consider potential tax implications. Contact the CPAs and business advisors at SEK for more information.
Are your volunteers risking legal and tax liability?
Nonprofit leaders need to ensure their organizations carry adequate insurance and have risk mitigation policies in place. They also need to ensure that volunteer s are reimbursed only for actual out-of-pocket expenses they’ve incurred on behalf of the organization. Otherwise, reimbursements could be considered taxable income. Contact the CPAs and business advisors at SEK for more information.
Disaster relief charities: Know the rules before providing aid
Tax-exempt disaster relief charities are allowed to provide short-term emergency assistance and long-term aid to ensure that victims have necessities. But they must observe IRS rules. For more help following guidelines, contact the CPAs and business advisors at SEK.
Nonprofits don’t lose as much to fraud, but risk requires action
Nonprofits suffer a median loss of $76,000 per fraud incident, according to the Association of Certified Fraud Examiners’ 2024 Report to the Nations. If your organization can’t afford to lose that much (and what nonprofit can?), make sure you have strong internal controls. This starts with training staffers, board members and some volunteers to recognize and report fraud. Contact the CPAs and business advisors at SEK for help with internal controls.
Nonprofits: Board committees can help members make time for critical work
For many not-for-profits, maintaining a full and active board of directors is challenging. But breaking down the workload by committee can help give board members a focus for their efforts. Contact the CPAs and business advisors at SEK with your nonprofit questions.
Nonprofits: Don’t be surprised by a sudden influx of support
Disaster-relief charities have long contended with sudden influxes of attention and donations. But any nonprofit could face this enviable “problem.” While your nonprofit is in a period of relative calm, consider how you might handle it. Contact the CPAs and business advisors at SEK for help with your nonprofit or for more financial advice.
Building a better nonprofit: Rules for restructuring
Since Revenue Procedure 2018-15 went into effect, not-for-profit restructurings have generally been easier for organizations that qualify. You may be able to make some significant changes to your organization and simply use Form 990 to inform the IRS, bypassing the need to create a new legal entity and file a new exemption application. But don’t just assume your restructuring qualifies. Before making major changes, contact the CPAs and business advisors at SEK to discuss your plans.
Nonprofits: Take another look at Inflation Reduction Act tax breaks
The Inflation Reduction Act’s tax provisions may seem like they were designed to benefit for-profit businesses. But the IRA can also help reduce the cost of nonprofit construction projects, so long as you use energy-efficient materials and qualified labor. Contact the CPAs and business advisors at SEK to learn how to allocate clean-energy construction deductions to qualified designers and become eligible for cash payments related to certain tax credits.
Nonprofits: Making the most of your social media accounts
Even though social media is generally free or low cost, your not-for-profit should apply staffing resources to it wisely. Review and potentially revise your social media strategy at least once a year, prioritizing frequent posting to platforms your supporters use most. If you don’t have a social media policy, create one. Contact the CPAs and business advisors at SEK for help with your nonprofit.