Recent News & Blog / Nonprofit
Nonprofit refresher course: Excess benefit transactions
To understand the need for nonprofits to avoid excess benefit transactions, it helps to also comprehend the concept of private inurement. If any net earnings inure to the private benefit of an individual, the IRS won’t view your nonprofit as operating primarily to further its tax-exempt purpose. But you must be able to prove transactions were made with your tax-exempt purpose in mind. Contact the CPAs and business advisors at SEK for more information.
How your board should evolve over your nonprofit’s life
A board of directors is critical to keeping a not-for-profit focused over the years as it grows. But how do nonprofit boards change over time? In part, it depends on the organization and its mission. Its life stage will also help determine your board’s priorities, responsibilities and composition. Contact the business advisors at SEK for help with your nonprofit.
Nonprofit: Even a lower-cost benefits menu can help you attract talent
If your not-for-profit is recruiting new staffers, it can be difficult to overcome the widely held belief that nonprofits offer lower salaries than for-profit businesses. To entice candidates to give your organization a second look, consider enhancing your benefits menu. It doesn’t have to cost a lot. Talk to a benefits expert or contact the business advisors at SEK for more information.
Nonprofit: Cross-training initiatives can get your whole organization in shape
Elite athletes cross-train to promote full-body strength, enhance performance and reduce the risk of injury. Nonprofits that cross-train staffers on one another’s jobs can reap similar results. If your employees understand the basic functions of other positions, they can jump in and help out if someone goes on disability leave or there’s a work surge in a particular department. For more information, contact the CPAs and business advisors at SEK.
Nonprofits: Why private foundations need to avoid self-dealing
The IRS strictly prohibits self-dealing between private foundations and “disqualified persons.” Self-dealing generally includes lending money and extending credit and providing goods and facilities. Financial penalties for violations can range from 5% up to 200% of the amount involved in a transaction. Contact the CPAs and business advisors at SEK for questions on staying compliant.
Nonprofits: Thinking ahead to your next Form 990
The deadline for calendar-year not-for-profits to file Form 990 with the IRS has come and gone. But it’s never too early to think about reporting responsibilities for the next deadline. Work with the CPAs and business advisors at SEK to help ensure you accurately track activities during the year and are prepared to file Form 990.
Nonprofits: Gather information from clients without triggering survey fatigue
The sheer number of feedback requests has resulted in a widespread sense of “survey fatigue” among Americans. To overcome this barrier and find out what your nonprofit’s clients think about your programs, you likely need to go beyond offering online surveys with your email newsletters and on your website and social media platforms. Contact the business advisors at SEK for more information.
Nonprofits: Act thoroughly on audit findings
External audits can help assure your nonprofit’s stakeholders of your financial stability and help prevent fraud losses. Often, audit reports recommend actions organizations need to take. If you fail to make changes that respond to a report’s concerns, it could threaten your nonprofit’s future. Contact the CPAs and business advisors at SEK to answer your nonprofit audit questions.
Combatting negative public perceptions of your nonprofit
Although Americans trust philanthropic organizations more than government and businesses, almost a third believe not-for-profits are on the “wrong track,” according to a 2023 survey. But there are ways to manage public perception to help your nonprofit weather unexpected crises.
Nonprofits: Weighing potential risks and returns of alternative investments
Alternative investments may appeal to your not-for-profit because they can offer higher long-term performance than traditional securities do. But before your organization allocates investment dollars to hedge funds, private equity or cryptocurrency, consider potential tax implications. Contact the CPAs and business advisors at SEK for more information.