These are difficult questions, particularly with so much uncertainty around funding and tax policy. Scenario planning can at least give the board something concrete to discuss. I would look at a best case, middle case, and difficult case rather than trying to predict everything. Regular budget reviews also make it easier to adjust when… Read more

Hello Donald, welcome to the community. Your calculation looks right to me. It follows the standard approach to calculating Liquid Unrestricted Net Assets, with the focus being on resources that are genuinely available for use. You are taking out restricted funds and less liquid assets such as buildings, while accounting for the related debt. The… Read more

The main risk is that these unusually favourable arrangements can disappear when local politics or budgets change. An organisation could then face the rather awkward task of finding affordable space at short notice. I would keep a small reserve fund for that possibility and make sure the agreement includes clear termination terms. Maintaining… Read more

Local accounting firms, retired finance professionals, and business networks can be good places to look. Many professionals are willing to contribute their expertise when the cause aligns with their interests. I would clearly explain the role, responsibilities, and expected time commitment before approaching candidates. Local nonprofit… Read more

From what I have seen, seven years is often used for financial and tax records, although requirements can vary. Childcare records can be a different matter, particularly attendance, health information, and staff documentation. I would separate governance and financial records from student and personnel files. Keeping properly organized digital… Read more

Yes, fundraising for a particular event can work, provided the appeal is clear about where the money will go. If donors are told their contributions are specifically for the gala, there may be restrictions on how those funds are spent. I would include a short statement explaining what happens to any surplus. That small detail can prevent an…

Read more

For a nonprofit at that scale, I would look beyond traditional banks and compare institutions that understand nonprofit cash management. I would also prioritize options that can help diversify deposits and manage funds efficiently while staying within FDIC insurance rules.

You can start by automating the first verification layer rather than trying to automate the entire compliance process. The IRS already provides searchable nonprofit status, Form 990 filings, determination letters, and revocation data. If you connect those checks to a workflow, it can eliminate a lot of repetitive manual research.

I completely agree. A polished social media presence is evidence of marketing, not proof of legitimacy. The IRS itself recommends checking a nonprofit’s tax-exempt status, eligibility to receive deductible contributions, and filings through its Tax Exempt Organization Search. For donors who want to make this process faster, APIs can come in h…

Read more

From what I have seen, gradually releasing a restriction as construction milestones are completed can be a good approach, provided the gift terms and accounting guidance support it. The timing should be based on the specific restriction and applicable accounting requirements rather than waiting automatically until the building is fully in service.… Read more

That is an interesting point, and the narrower definition of an “interested person” in a sample policy could potentially create gaps. In my view, it may be worth reviewing the policy against the broader “disqualified person” definition under Section 4958 and tailoring it to the organisation’s circumstances. For healthcare organisations in partic…

Read more

If the grant agreement only restricts how the money is spent, I wouldn’t automatically treat that as a condition preventing recognition. I’d generally recognise the award when you’re entitled to it, while recording restrictions separately. If future-year funding depends on meeting specific requirements, though, that portion may need diffe… Read more

I’d focus less on finding a generic bookkeeping firm and more on someone who understands nonprofit fund accounting and QuickBooks Online. Your chart of accounts, classes, and projects should be designed around how you report grants and programmes. I’d also ask your REDF cohort for referrals; they’re likely to have encountered the same problem.

That’s a great question. For in-kind donations you receive, record them at fair market value on the date they arrive. For goods, use retail or thrift shop values; for services like legal help, use FMV if you would have paid for them anyway. Just remember to record both revenue and an equal expense. When you donate items or services, record them as… Read more

We took a blended approach to address rising costs. We gave all staff a 5% cost-of-living increase to help with inflation. Then we added a separate 3% merit pool for performance-based adjustments. This helps us keep our team supported while still rewarding strong work. We review salaries quarterly to keep them competitive.

I’ve heard similar discussions, although I’d be cautious about treating them as confirmed without an official source. The Single Audit threshold and indirect cost rate can have significant implications for nonprofits. It would be useful to know where others are seeing the latest guidance.

Your board member is right about earning near zero, but moving operating cash without a policy is risky.
The middle ground here is to move any cash above your immediate flow needs into a money market account that is still accessible. That is a safe first step.
Then build a formal reserve policy. Define what is your working capital and what is your… Read more

Anniee, the one thing I would add is to track everything with UTM parameters. It is the only way to know which platform is actually driving donations, not just likes. One has to be smart, not just social.

The funding freezes and policy shifts are the biggest concerns. Unpredictable grants and revised contract terms are forcing organisations to operate in survival mode, making it hard to retain staff, plan ahead, or speak openly about their mission. It has become a daily fight for financial stability.