Arts & Cultural Articles

Investment fraud has become a significant threat to nonprofits, with criminals posing as legitimate advisors to gain control of assets. Nonprofits should be cautious of unrealistic promises and ensure their advisors are transparent, accessible, and subject to outside audits. Seeking referrals from trusted sources and closely monitoring the advisor's decisions can help protect the organization's financial health and reputation.

Unrelated Business Income Tax (UBIT) is a tax imposed on income generated by nonprofit organizations from activities that are unrelated to their primary mission. Qualified sponsorship payments are not subject to UBIT, but if a sponsor receives substantial return benefits beyond acknowledgments, such as advertising, UBIT may apply.

Crowdfunding platforms nonprofit organizations to raise money and engage potential supporters, especially younger adults. Tax implications of crowdfunding can be complex and different from traditional fundraising methods. Crowdfunding websites or their payment processors may be required to report distributions of funds by filing IRS Form 1099-K, and the reporting threshold has been significantly lowered over the years.

Nonprofits can significantly improve their operations by leveraging AI and automation. These technologies help reduce human errors, free up time for mission-oriented work, and streamline essential tasks like fundraising, marketing, and reporting.

A nonprofit board governance policy provides a framework for decision-making that aligns with the organization's mission. It outlines directors' fiduciary responsibilities, including the duty of care and loyalty, and emphasizes the importance of professional support and compliance with governing documents.

There is a critical need for nonprofits to safeguard the privacy of donors, staff, clients, and volunteers to avoid legal and reputational risks. This article highlights that implementing strict data protection policies can foster trust among stakeholders, prevent operational disruptions, and maintain the integrity of the organization's mission.

Effective grant management is critical for organizations to ensure compliance, financial integrity, and operational efficiency.

Nonprofit board members must closely monitor their organization's financial health, especially during times of economic uncertainty. Key warning signs include unexplained financial variances, unusual spending patterns, and inconsistent financial statements. Identifying and addressing these issues is crucial to maintaining the nonprofit's ability to fund essential programs and continue operating.

Recent developments from the U.S. Supreme Court have significant implications for nonprofit organizations that rely on federal funding.

Nonprofit organizations can reduce expenses without cutting staff by investing in technology, leveraging partnerships and shared services, and optimizing business operations and vendor contracts. Additionally, focusing on employee development, utilizing volunteers, and implementing eco-friendly practices can lead to significant cost savings while maintaining the organization's mission and morale.