Hello, Tony. This is a classic accounting conundrum. In my view, the answer depends largely on the nature of the expense. If the cost relates to an employee’s past service, allocating it according to their historical time breakdown seems reasonable. Using the previous year’s analysis provides a practical and defensible basis, even if it feels… Read more

It was a real trial by fire, was it not? Many organisations without reserves had to scramble for survival, often relying on bridge loans or aggressive cost-cutting. For those with reserves, the pandemic demonstrated their value as a financial lifeline. What I took away from it is that having money set aside, even a modest amount, is not simply a… Read more

It is a tricky situation, and the answer is probably a definite maybe. If the grantor is silent, you need a reasonable spending schedule that aligns with the programme’s objectives and the terms of the grant. Using everything in year one could raise questions about planning and sustainability. I would suggest creating a budget timeline and seeking… Read more

A solid volunteer policy can start with clear role definitions and a simple tracking spreadsheet or lightweight CRM. For FMV rates, the Independent Sector publishes annual guidance that many organisations find useful. It may also be worth pairing this with a straightforward gift acceptance policy for contributions handled by volunteers. The… Read more

This is a thoughtful set of questions, and in my experience with membership models, the key is creating genuine community value rather than simply adding clever pricing tiers. Starting with a small, committed group and growing gradually can make the process more manageable. Simple, consistent communication is also easy to overlook, but honest… Read more

A sudden windfall is certainly a nice problem to have, although it can create difficult decisions for a team. In my view, dividing the gift between immediate needs, reserves and longer-term funds such as an endowment could provide a useful balance. A clear, board-approved policy can also help set expectations and reduce disagreements. The… Read more

Climate planning can feel like a moving target, but building stronger cash reserves is a sensible place to start. From my perspective, philanthropy can sometimes be more reactive, although there is growing interest in funding resilience and adaptation. Framing climate planning as part of operational resilience, rather than simply an environmental… Read more

Donors should look beyond overhead and consider whether a charity has healthy reserves, credibility and stable revenue. This is a lot easier to assess now because nonprofit verification has been automated by tools such as the Nonprofit Check Plus API. This saves the manual stress of paper works. It also makes it easier to assess an…

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While the Nonprofit Check Plus API is cheaper than Zeffy API, and ProPublica Nonprofit Explorer upon check, I will like to know if a single subscription can be used by a team of five.

Okay!

Thank you.

How legitimate is this?

I don’t think any single database tracks that mix by mission area. But key insights do exist. For example, according to Candid, government grants fund about 30% of US nonprofits, with more than 35,000 relying on them for over half their revenue. Human services are the most vulnerable.
Also, according to the Charities Aid Foundation’s UK Giving… Read more

Economic jitters hit everyone differently. Diverse funding is your best shield. Mix grants, individual gifts, and earned income so no single dip sinks you.

You are smart to sort this out. Getting a NICRA means getting properly reimbursed for your admin costs.
You have two choices. Use the de minimis rate of 15% of your modified total direct costs, which is the simple option. Or go for the full negotiation with your cognizant agency, usually the federal agency that gives you the most funding.
The full… Read more

Rachel, you need a debit card solution with budget controls tied to your main account, not a credit line. Since Bill, Ramp, and Expensify are either too expensive or won’t approve you, look at nonprofit specific options like Crowded or prepaid platforms like B4B Payments and GiveCard.
They give you sub accounts, budgeted cards for each team, and… Read more

That denial sounds incredibly frustrating and suspect. With the current political climate, it would not be surprising if financial institutions are quietly flagging DEI-focused nonprofits as “risky” without admitting it. You might want to try a smaller, mission-aligned merchant processor rather than the big banks. Have you reached out to other… Read more

For Question 1…

Yes, they are. Every Form 990 must be signed by an officer under penalty of perjury, attesting that the return is true, correct, and complete to the best of their knowledge. This applies to both the main return and all attached schedules, including Schedule B.

For Question 2…

You are absolutely right. The dollar amounts on…

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Tough spot. 501(c)(6) organizations are not charities, so they are not required to disclose contributor information publicly. Your best bet is to formally request their Form 990, as the IRS requires that to be available for inspection. If they still refuse, you can file a complaint with the IRS.

On the verification front, the Nonprofit Check Plus…

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The same rules apply to nonprofits since we follow the same tax code. If the meal is for your convenience as the employer, it is not deductible and could be taxable to employees. Mid-day meetings usually count as convenience, so yes, you might need to run it through payroll

Great question, Angelica. We absolutely use materiality as our guide. If that donated software or pro bono service would matter to a board member or donor, it goes in. If not, we track it internally and move on. Saves so much headache.

What is your threshold for deciding what is “material” enough?