Alex
Forum Replies Created
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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 a contribution expense at fair value. Keeping separate accounts for goods and services helps, and it’s always wise to document how you valued each donation for your records.
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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.
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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.
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I think separating direct programme costs from shared overhead is a good starting point. For online education, you could track platform development, educator support and research separately. A consistent method should make programme costs much easier to understand.
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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 operating reserve. Document your current cycle of six months down to two to three months as your rationale. That turns a good idea into a sustainable, governed strategy.