If your smaller nonprofit uses the cash basis of accounting and routinely prepares interim financial statements, you may have noticed that your auditors propose financial statement adjustments at year end. Why is this happening? In general, such adjustments reflect differences between the cash basis and accrual basis of accounting. Accrual accounting is required by GAAP
nonprofit Archives - Crawford Ellenbogen
Jun 13, 2023
Are your nonprofit’s interim and year-end financial statements at odds?
- By Victor Dozzi
- Non-Profit
- 0 Comments
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Mar 29, 2023
Data analytics is more accessible than you might think
- By Joan Ellenbogen
- Non-Profit
- 0 Comments
No matter your not-for-profit’s mission, you can probably use data analytics to help uncover root causes of seemingly intractable problems, predict outcomes, boost efficiency and improve transparency. Analysis of certain fundraising data may, for example, make it easier to target potential donors or members. Data analytics can also help develop connections and patterns that lead
Nov 30, 2022
Operating reserves can help cushion financial blows
- By Joan Ellenbogen
- Non-Profit
- 0 Comments
First the COVID-19 pandemic wreaked havoc on not-for-profit finances and operations. Now, many organizations are worried about how high inflation and a possible recession might interfere with their plans. To help prevent service disruptions and other negative outcomes, focus on building up operating reserves. Even if you can afford to divert only a small amount
Aug 23, 2022
For a stronger nonprofit, increase the number of income streams
- By Victor Dozzi
- Non-Profit
- 0 Comments
Not-for-profits that rely on a single income source, or only a few, are vulnerable to economic shocks. The COVID-19 pandemic has made this particularly clear. Most organizations have had to scramble to make up for lost revenue when at least some of their usual support dried up in 2020 — and has been slow to
Aug 3, 2022
Dangerous donations: Should your nonprofit risk bad publicity?
- By Victor Dozzi
- Non-Profit
- 0 Comments
No not-for-profit wants to turn down donations — particularly if they’re large. Nevertheless, you need to consider the source of gifts and potentially refuse those attached to controversial donors. Bad publicity, particularly if it hits social media and goes viral, can be far more expensive for your organization in the long run. A look at
Jun 30, 2022
How to cut costs instead of your nonprofit’s staff
- By Victor Dozzi
- Non-Profit
- 0 Comments
Many not-for-profits are still suffering financially from the pandemic, particularly as inflation makes expenses more costly. Before you consider cutting staff, find other expenses to slash. For example, if employees now work from home, see if you can break or renegotiate your office lease. And if you have more than one location, try to combine
Mar 8, 2022
Your nonprofit’s board needs to know these financial warning signs
- By Joan Ellenbogen
- Non-Profit
- 0 Comments
Is your board staring at financial red flags without knowing it? Although some warning signs — such as those experienced when the pandemic first hit — are obvious, others are easy to overlook. Here are several signs of trouble that board members need to be aware of and prepared to act on. Unexplained variances and
Dec 2, 2021
Established nonprofits must continue to build and grow
- By Joan Ellenbogen
- Non-Profit
- 0 Comments
As not-for-profits transition out of pandemic “survival” mode, even established organizations need to watch out for pitfalls. For example, “mission creep” can alienate longtime supporters and cause your nonprofit to become overextended. To remain true to your mission, yet grow and become sustainable, consider adding more experienced board members capable of taking on greater leadership
Nov 23, 2021
When nonprofits should return donations
- By Victor Dozzi
- Charity, Non-Profit
- 0 Comments
Return requests generally are rare, but occasionally donors may ask your not-for-profit to return their contribution. Are you required to comply? What if you’ve already spent the money? There’s no federal law that requires nonprofits to return donations. Individual states have enacted various laws that could come into play, but these generally are vague about
Jun 15, 2021
Is a merger in your nonprofit’s post-pandemic plans?
- By Joan Ellenbogen
- Non-Profit
- 0 Comments
As the pandemic finally seems to be fading, your not-for-profit may be making plans for its post-pandemic future. If those plans include a merger, know that it can provide your organization with greater stability. There are good reasons to merge, such as to enjoy economies of scale, gain access to a new audience or reduce