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Hi Kristin – Thanks so much for posting here. If you haven’t already, I’d encourage you to access our current resources that include key considerations for each of the nonprofit business models (linked here): https://nonprofitfinancials.org/courses/five-non-profit-business-models-series/

As it relates to your question, determining what model will…

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Hi Addison – seconding the QuickBooks Made Easy recommendation, that’s a solid starting point. On the chart-of-accounts/grant reporting side specifically, that’s the piece we work on most with nonprofit clients (predawn accounting) – getting classes/projects structured properly so grant reports pull cleanly instead of fighting the system after the…

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Our organization used to be a central hub for state grants that were passed on to our member organizations. That was a significant part of our annual revenue. When the state changed that so that each org must manage their own, my organization never assessed the business model to determine whether it was sustainable without this earned income.

I…

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A good approach is to connect social media where it naturally supports the website’s goals, such as social feeds, sharing buttons, donation campaigns, and newsletter sign-ups. APIs can also help connect these tools with other nonprofit systems; for example, the Nonprofit Check Plus API can be useful when verifying nonprofit information as part o…

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Switching away from manually updating endless Excel spreadsheets every single month sounds like an absolute dream! Relying solely on manual trackers gets so tedious when you want your team to have real-time visibility. Once you finally finish sorting out all those financial forecasts and reports for the day, relaxing at home with some great ai…

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There probably isn’t a completely recession-proof business model, but organizations with diversified revenue streams tend to have more flexibility during economic uncertainty. A mix of recurring revenue, individual donations, grants, and earned income can reduce dependence on any single source. It also helps to regularly review expenses and d…

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This is a timely question, thank you. I am curious whether anyone has seen major gifts hold steady while small gifts fall. Also, how quickly do corporate sponsors pull back? Would value hearing others’ experience. Reserves seem to matter enormously here.

Has anyone tried embedding feeds versus manual posting? I wonder which actually drives donations. Also curious whether link tracking gets messy across platforms. Would love to hear what worked for smaller charities. Thank you for raising this.

I would separate operating cash from true reserves and create a policy around liquidity, safety, and yield. If the organization regularly needs 2-3 months of cash midyear, I would keep enough immediately accessible to cover expected expenses, then consider putting the excess in a low-risk, liquid account rather than leaving everything in checking.…

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The distinction between an “interested person” and a “disqualified person” is an important one, especially for nonprofits that rely on the IRS sample conflict of interest policy. The IRS model can be a useful starting point, but organizations should not assume it covers every situation addressed by IRC Section 4958.

In practice, a conflict of inte…

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Thank you for sharing this question, Terri. The replies here are really helpful, especially the point about separating the organisation’s share from the amount owed to the winner. I also appreciate the reminder that the accounting treatment can depend on whether the organisation controls the full proceeds. For a 50/50 arrangement, keeping that d… Read more

Thanks, Roger, for raising this. There are some good ideas in the replies, particularly around keeping operating cash accessible while allowing genuinely idle funds to earn something. I also like the suggestion of having both a reserves policy and an investment policy. That gives the board something clear to work from instead of making each… Read more

Theo here again. Dan, the question of using the same wages for multiple funding or credit purposes is certainly an important part of this discussion. For nonprofits that received government funding, the treatment of wages can require careful review before claiming the Employee Retention Credit. There were organizations that benefited from the… Read more

Theo here. Joseph, I can see why the board might be confused. They may simply be looking at two different views of the organization’s finances without enough explanation of how the figures relate to one another. My view is that finance reports provide the formal accounting picture, while fundraising reports provide a relationship and development… Read more

Dan, your list of places where obligations can be hidden is quite helpful. My approach is fairly simple, but I find it reliable. When an award arrives, I go through the document carefully and highlight every “shall”, “must”, and relevant table row. I then create a simple tracker with three columns: task, owner, and deadline. Any relative deadlines… Read more

Kathryn’s stop-work order idea could certainly be useful in some situations, although it might be a little strong as a first step. I think a gentler approach can sometimes work better. Start with an email to the contract manager and ask if they can confirm the expected payment date in writing. It can also help to explain that your team needs the… Read more

Right, so moving from Form 990-N to Form 990-EZ can represent a significant change, and the appropriate approach will depend on your organization’s income and activities. For an overseas office, Schedule F on Form 1040 is related to individual tax matters, so it would not be the relevant nonprofit schedule. If the charity operates internationally… Read more