Viewing posts categorised under: Non-profit
09May
5 accounting mistakes your nonprofit should avoid
Non-profit

 

To err is human, but your not-for-profit’s supporters, not to mention the IRS, may be less than forgiving if errors affect your financial books. Fortunately, if you attend to accounting details, you can avoid these common pitfalls:

1. Failing to follow accounting procedures. Even the smallest nonprofit should set formal, documented and detailed procedures for managing financial and bookkeeping chores. Your process should include all aspects of managing your organization’s money — how to accept, document and deposit donations, pay bills, and handle every step in between. Put these procedures in writing and make sure you follow each step, every time.

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02Mar
What to do if your nonprofit receives an IRS audit letter
Audit

 

In recent years, the IRS has increased its scrutiny — including actual audits — of not-for-profits. Do you know what to do if your organization receives an audit letter?

What is an audit?

An audit begins with the initial contact from the IRS and continues until a closing letter is issued. Before closing an audit, an officer of your nonprofit, your CPA and the IRS agent will discuss the agent’s conclusions at a closing conference. Both the conference and letter will explain your appeal rights.

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05Jan
Why nonprofits should be careful about doing business with board members
Non-profit

 

Your not-for-profit’s board members may be able to offer access to better deals or services than your organization could get on its own. However, there’s a fine line between a board member helping your nonprofit get fair pricing and the member receiving perceived or actual personal benefits. The latter can threaten your exempt status.

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03Oct
Nonprofits: Don’t risk your tax-exempt status
Non-profit

 

Once acquired, a not-for-profit’s tax-exempt status isn’t permanent. Your organization’s activities, the ways it generates revenue and how it uses that revenue can lead to the IRS reviewing and even revoking your status.

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