Recent News & Blog / Nonprofit
Rebuilding your nonprofit’s operating reserves
If your nonprofit has operating reserves, they can help prevent service disruptions and an urgent search for alternate funding. If you don’t have reserves, create a formal written reserves policy as soon as possible. Our nonprofit advisors can assist you with establishing operating reserves if needed.
Regaining your nonprofit tax-exempt status
Has your not-for-profit lost its tax-exempt status because it failed to file its annual Form 990, 990-EZ or 990-N for three consecutive years? The good news is you can potentially file Form 1023 or 1024 (depending on circumstances) with the IRS for reinstatement. Because the reinstatement process can be confusing, contact SEK's nonprofit advisors. We can help you navigate IRS rules and prevent the situation from occurring again.
Making cost-allocation decisions for your nonprofit
Nonprofits often struggle with allocating program expenses properly. Yet the process is critical because your supporters want to know how you use financial resources. And you likely must comply with Financial Accounting Standards Board (FASB) guidance. Contact our nonprofit advisors with questions on your nonprofit's cost allocations.
Casino nights aren’t all fun and games for nonprofit events
Charitable fundraisers that feature games of chance help nonprofits raise millions of dollars every year. However, if you regularly host gaming fundraisers, you may be subject to unrelated business income tax. And wagering excise and occupational taxes could apply in some circumstances. Contact the nonprofit advisors at SEK for more information.
One from many: Why your nonprofit might want to federate
Federated nonprofits are single corporate entities with multiple chapters. There’s no one definitive legal structure for federated organizations. But local chapters generally operate independently and pay an amount to their national office in exchange for the name, branding and other benefits. Advantages can include economies of scale; a single, distinct brand; higher visibility; shared resources; and greater chapter-based accountability. Contact SEK's nonprofit advisors to learn more.
Make better branding your nonprofit’s 2025 New Year’s resolution
Here’s a nonprofit New Year’s resolution: Strengthen your brand. The first task is to identify what your nonprofit cares about, what it does, how it’s effective and why it deserves support. Contact SEK's nonprofit advisors for suggestions.
Using an exit agreement to manage your nonprofit’s leadership transition
If one of your nonprofit’s leaders is departing, an exit agreement may help smooth the process. This legal document, usually developed by the board of directors, is intended to compensate a founder or executive for past service or provide incentives to perform future work. There are several types of exit agreements, including “catch-up,” “stay” and one-time honorarium. Contact SEK's nonprofit advisors for guidance.
Nonprofit start-ups: Form 1023 or 1023-EZ?
When new nonprofits apply to the IRS for approval to be 501(c)(3) tax-exempt organizations, which form should they use, Form 1023 or 1023-EZ? The first is much longer and more costly to file. However, not all nonprofits qualify to use the shorter, less expensive-to-file Form 1023-EZ. Contact the nonprofit advisors at SEK for help selecting and filing a form.
Should your nonprofit compete, collaborate or both?
Not-for-profits often collaborate with other organizations with similar missions and values. But due to limited donor and grant maker resources, you also need to think about similar nonprofits as competitors. However, if a competitor has access to resources and connections you don’t (and vice versa) it may make sense to collaborate. Contact the nonprofit advisors at SEK with your financial questions.
What nonprofits might expect from the change of control in Washington
The reelection of Donald Trump as President and control of the U.S. Congress by Republicans are anticipated to usher in changes that could financially impact the not-for-profit sector. Each organization will be affected differently, but in general, you may want to keep an eye on the following issues. Contact the nonprofit advisors at SEK with questions and concerns.