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Using an exit agreement to manage your nonprofit’s leadership transition
All good things must come to an end — including the tenure of a respected founder or executive. Just make sure that the departure of your not-for-profit’s leader remains smooth throughout the exit and transition process. An exit agreement may help. Compensation and a continuing relationship Exit agreements are legal documents, usually developed by a…
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Make better branding your nonprofit’s 2025 New Year’s resolution
If your not-for-profit wants to make an organization-wide New Year’s resolution for 2025, how about this: Strengthen our brand. Although branding strategies usually are associated with the for-profit sector, they can be just as critical in helping your nonprofit stand out in a sea of organizations seeking funding and attention. What it is Branding uses…
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One from many: Why your nonprofit might want to federate
Federated not-for-profits are single corporate entities with multiple chapters. There’s no one definitive legal structure for federated organizations. But local chapters generally operate independently of their national headquarters and pay a certain percentage of income to their national office in exchange for the name, branding and other benefits. Many large organizations, including Boys & Girls…
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Don’t let myths and self-doubt thwart your capital campaign plan
It’s understandable if your not-for-profit has been putting off launching a capital campaign — despite having grand plans to build a new facility, make major purchases or expand a key program. After all, myths abound about the risks of pursuing such large fundraising projects. According to the Association of Fundraising Professionals, included in these myths…
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Restricted gifts: What to do when strings are attached
Brad, the development director of an international environmental charity, was thrilled to learn from a fundraising staffer that one of the charity’s past supporters was promising to make a new, six-figure donation. But there was a catch: The donor was going to attach restrictions to her gift. She didn’t, for example, want her money used…
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Welcome charitable pledges — and account for them properly
The difference between financial pledges and donations is relatively simple: Pledges are promises to donate sometime in the future, and donations provide immediate support for your not-for-profit organization. What’s not so simple is accounting for pledges. After all, a promise to donate isn’t a guarantee that you’ll receive the money when the contributor says you…
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Fundamental differences between nonprofit and for-profit accounting
You may know the difference between nonprofit and for-profit accounting systems, but do your newest employees and board members? Not-for-profits and businesses share certain similarities. For example, both must carefully track transactions and produce accurate, timely financial statements. But there are enough differences between the two that you may want to provide training for new…
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When your nonprofit’s debt-financed income is subject to tax
If your nonprofit has investment income, dividends, interest, rents and annuities, they’re generally excluded when calculating unrelated business income tax (UBIT). However, income from debt-financed property typically is taxable. So it’s important to segregate income from such property and include it in UBIT calculations to help ensure you don’t trigger unwanted IRS attention. What counts…
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Are your nonprofit board meetings as focused as they could be?
According to nonprofit BoardSource, not-for-profit boards that meet monthly should be able to cover all business in one to two hours. If your meetings last longer, they may lack planning and focus. This can ultimately harm your organization as busy board members lose confidence in your leadership — and even quit. Here’s how to hold…
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Get the word out about IRA qualified charitable distributions
The SECURE 2.0 Act made some enhancements to IRA qualified charitable distributions (QCDs) that may benefit your not-for-profit organization — so long as donors know about them. You can encourage your supporters to contribute more by boning up on the new rules and communicating their tax advantages. QCDs to RMDs First, the basics: QCDs were established…
