[Wade_Rogers_Forum_Moderator]

Hi Tammy…thanks for coming over to the forum! In my experience dealing with this type of wording – and not knowing the rest of the details of the grant – that sounds like a restriction on how you can spend the funds but not a condition you have to satisfy in order to receive the funding. Likely you would be recognizing that revenue up front upon the award notification. We hope to hear from others as the forums pick up steam!

[Wade_Rogers_Forum_Moderator]

Thanks for bringing up the UBIT issue. As long as the unrelated activities are not substantial (overtaking the mission) and the related tax is taken into account these activities can be lucrative and ongoing. Problem is I find organizations undertake them without asking the UBIT question and then don’t factor in the tax liability when budgeting for them. I look forward to more discussion on this topic!

[Wade_Rogers_Forum_Moderator]

Good point Ruth. In fact, a comment you made the other day referred to the endless creativity that nonprofit leaders have in facing these complexities. I just met with an Executive Director who told me she is very weak in her finance skills but then proceeded to explain in great detail the financial challenges she is facing and the nuances of her organization’s accounting system. Perhaps it’s a question of naming that intuitive and experience-based ability over the standard skill sets we typically refer to.

[Wade_Rogers_Forum_Moderator]

Thanks for joining Stephen! I agree, coming from the finance side of nonprofit management, that the complexity of funding our organizations is off the charts compared to a for-profit entity of a similar size. I’d love to hear more from others about your point on nonprofit leaders, especially those in smaller organizations, and their handling of this complexity. How do we incorporate this acumen into the overall skill set they need to succeed?

[Wade_Rogers_Forum_Moderator]

Mark, I would only say they’re reluctant to invest the small amount of money that is being held as an emergency fund, say 3-6 months of operating expenses. The few groups that I have who have started to build or have been awarded an endowment are of course entering the market, typically following the strategies that respondents have been describing in this forum.