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Enhancing the Nonprofit Treasurer Role and Relationship
Most treasurers for nonprofit organizations do not venture outside their traditional role of stewardship of the organization’s financial assets. Financial stewardship is important, but the perspective of the treasurer has value far beyond this singular role. Treasurers and the organizations they serve both need to correct this narrow perception and look for opportunities to expand the sphere of influence of this important officer position.
![VIDEO PODCAST: Using Lines of Credit to Address Cash Flow Issues [SUBSCRIBERS-ONLY]](https://images.squarespace-cdn.com/content/v1/5e6ccadfb4659c1d51df14d5/ff2d4a5a-6b73-452a-85fe-cae67532c164/SE4N+Video+Podcast+12.png)
VIDEO PODCAST: Using Lines of Credit to Address Cash Flow Issues [SUBSCRIBERS-ONLY]
Ben and Mike discuss lines of credit and other forms of debt, whether a line of credit can be an appropriate tool to help nonprofit organizations manage cash flow, some issues to consider before taking out a line of credit, and the importance of addressing the root causes of an organization's cash flow shortfall.
Q&A #169 – Must a Form 1099 be issued for a scholarship payment?
Despite common misconceptions, Treasury Regulations and Internal Revenue Service (IRS) guidance provide that most scholarship payments provided by nonprofit organizations are not required to be reported by the payor on Form 1099 (or Form W-2), regardless of whether the scholarship is a “qualified scholarship” or taxable to the recipient, so long as the primary purpose is to aid the student in pursuing their studies and not as compensation for past, present, or future services.
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TEMPLATE: Short and Basic Grant Agreement [SUBSCRIBERS-ONLY]
This short and basic grant agreement template is intended for situations involving relatively straightforward grants from one 501(c)(3) organization to another 501(c)(3) organization to fund a specific project or program. This sample document provides relatively concise language covering key terms such as the timing of grant payments, the allowable use of grant funds, reporting and recordkeeping requirements imposed on the recipient organization, and more.
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VIDEO Q&A for Subscribers: November 2024 [SUBSCRIBERS-ONLY]
Ben and Mike answer questions from subscribers about the spending of operating reserves, conflicts of interest related founders of a nonprofit becoming staff, deciding between filing the Form 990-EZ and the Form 990, and legal issues raised by the moving of funds between related organizations.
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VIDEO PODCAST: Assessing Independent Contractor vs. Employee Status [SUBSCRIBERS-ONLY]
Mike and Ben discuss the legal standards for determining whether a nonprofit organization is permitted to a treat a worker as an independent contractor rather than an employee, the risks of worker misclassification and the different ways this issue can come to light, the reformulated IRS “20-factor” test, common mistakes and misconceptions about these rules, and more.
Q&A #168 – Is a newly formed nonprofit required to file Form 990-N for its first short tax year?
Most nonprofit organizations are required to submit a federal tax filing for their first partial or short tax year even if their tax-exempt status has not yet been approved, but there is no monetary penalty for failure to file if the organization qualifies to file the Form 990-N (e-postcard). Nonetheless, it is usually prudent to file Form 990-N for the first tax year anyway.
![Five Ways Nonprofit Board Actions Can Be Challenged Under Law [SUBSCRIBERS-ONLY]](https://images.squarespace-cdn.com/content/v1/5e6ccadfb4659c1d51df14d5/1730307595287-W3L74FMFRZEHZ01AZV15/pexels-zachary-caraway-646894910-17630959.jpg)
Five Ways Nonprofit Board Actions Can Be Challenged Under Law [SUBSCRIBERS-ONLY]
It is well-known that Board members are subject to fiduciary duties in their oversight and decision-making role, among other rules that apply to nonprofit organizations. However, the practical reality of how these requirements are scrutinized, applied, and enforced is less understood. This article provides a brief overview of some common ways that Board decisions and actions could be challenged in court.
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VIDEO Q&A for Subscribers: October 2024 [SUBSCRIBERS-ONLY]
Ben and Mike answer questions from subscribers about managing staff concerns about the additional workload that may come from forming a new subsidiary or related entity, mid-year amendments to the annual budget, whether an organization should restore its good standing as a corporation prior to dissolving, and the distinction between restricted funds and Board-designated funds.
![TEMPLATE: Operating Reserves Status Report Spreadsheet [SUBSCRIBERS-ONLY]](https://images.squarespace-cdn.com/content/v1/5e6ccadfb4659c1d51df14d5/a649cd7c-e1a3-4179-878c-feebac87034f/pexels-jer-rey-1755654-10935133.jpg)
TEMPLATE: Operating Reserves Status Report Spreadsheet [SUBSCRIBERS-ONLY]
Operating reserves are one the most important components of financial health for a nonprofit organization and a key indicator for long-term fiscal and financial sustainability. Providing regular reports on the status of an organization’s operating reserves is essential for monitoring an organization’s financial health as well as compliance with its operating reserve policy.
The Problem with Hybrid Meetings and Events
In-person meetings and events are completely different animals from virtual meetings and events and that difference needs to be recognized and respected. In-person and virtual formats work best when they are exclusive and not combined into a “hybrid” format. While hybrid meeting and event formats may be used occasionally in response to unexpected disruptions, they should not be viewed as the new normal or a long-term option for the future.
![VIDEO PODCAST: Drafting Independent Contractor Agreements [SUBSCRIBERS-ONLY]](https://images.squarespace-cdn.com/content/v1/5e6ccadfb4659c1d51df14d5/1728436885495-MSDDE5GU3PL443OHURNM/SE4N+Video+Podcast+10.png)
VIDEO PODCAST: Drafting Independent Contractor Agreements [SUBSCRIBERS-ONLY]
Ben and Mike discuss key issues nonprofits should consider when drafting independent contractor agreements for consultants and other service providers, including how independent contractor agreements impact worker classification, approaches to using and customizing template agreements, drafting compensation and scope of work terms, and more.
Q&A #167 – Does the Board of Directors have a responsibility to review staff policies?
The chief executive of a nonprofit organization usually has the primary responsibility for managing staff and human resources issues, including the development and implementation of most employee handbook policies. With some exceptions, nonprofit Boards are not expected to review and approve staff policies, but the Board’s oversight role includes a duty to take reasonable steps to confirm these policies are in place and updated periodically.
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VIDEO Q&A for Subscribers: September 2024 [SUBSCRIBERS-ONLY]
Ben and Mike answer questions from subscribers about whether nonprofit organizations should require employees and Board members to provide receipts for small dollar expense reimbursements, tips for properly using executive sessions in Board of Directors meetings, and issues raised by nonprofits providing capacity building support to other nonprofits.
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TEMPLATE: Code of Ethics [SUBSCRIBERS-ONLY]
A Code of Ethics is one of the fundamental governance policies that all nonprofit organizations should have, and an important complement to your organization’s conflict of interest policy. This Code of Ethics template is intended to help your organization identify and express the core principles and ethical requirements with which all Board members, staff, and other individuals who serve and/or represent the organization are expected to comply.