Healthcare Articles

Nonprofits facing budget cuts must be careful not to compromise essential safeguards like internal controls and cybersecurity, as doing so can increase the risk of fraud. Strengthening oversight, maintaining separation of duties, and investing in basic training and secure technology can help protect the organization without significantly raising costs.

Accounting errors can significantly disrupt nonprofit operations by leading to financial misstatements, compliance issues, and loss of donor trust. These mistakes can also increase administrative costs, hinder strategic planning, and expose weaknesses in internal controls, ultimately threatening the organization’s mission and sustainability.

To enhance the efficiency and effectiveness of nonprofit board meetings, several strategies are recommended. These include planning actionable agendas, providing adequate resources, prioritizing key issues, and more to optimize the time and energy of both leadership and board members. 

Nonprofits can effectively manage their revenue sources by diversifying their funding streams and implementing strategic financial planning. This approach helps ensure financial stability and sustainability, allowing organizations to better achieve their missions and serve their communities.

Nonprofit organizations can navigate the sudden departure of an Executive Director by following essential steps to ensure a smooth transition and maintain their mission's success. 

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.