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![Three Key Planning Steps to Get a Head Start on Your Next Audit [SUBSCRIBERS-ONLY]](https://images.squarespace-cdn.com/content/v1/5e6ccadfb4659c1d51df14d5/1707742656867-6IWUY7P983UL1RLRZCWJ/pencil-1891732_1920.jpg)
Three Key Planning Steps to Get a Head Start on Your Next Audit [SUBSCRIBERS-ONLY]
With disruptions from COVID-19 continuing into the foreseeable future, it is best to start planning for your next year-end financial statement audit early. Odds are that your next audit experience will be different than your last one due to the many programmatic and operational changes that most nonprofits have experienced this year. Investing some extra time in front-end logistical planning will lead to smoother sailing and better outcomes.
![A Revenue Aligned Budget is the Safe Way to Go [SUBSCRIBERS-ONLY]](https://images.squarespace-cdn.com/content/v1/5e6ccadfb4659c1d51df14d5/1707673315940-XFXSSKR83RU6Y3ESIJXN/pexels-katerina-holmes-5905610.jpg)
A Revenue Aligned Budget is the Safe Way to Go [SUBSCRIBERS-ONLY]
I feel the time is right to stretch our budget planning and begin to envision operations from the perspective of a balanced budget aligned to a conservative estimate of revenue and funding for the next 12 months. I am now advocating for using a “revenue aligned budget” strategy that is realistic in nature, obtainable, with low risk and a high degree for success.
![Some Legal Issues to Consider When Trying to Get Out of Your Office Lease [SUBSCRIBERS-ONLY]](https://images.squarespace-cdn.com/content/v1/5e6ccadfb4659c1d51df14d5/1707312051593-RLCDOAQJEBI9UGBCHWQ9/new-york-city-2533361_1920.jpg)
Some Legal Issues to Consider When Trying to Get Out of Your Office Lease [SUBSCRIBERS-ONLY]
As the financial pressures on nonprofit organizations mount and many employees continue to work remotely from home, nonprofits are increasingly examining their options for getting out of their current office leases. This issue is particularly problematic for nonprofits whose current office leases are set to expire years into the future. A careful assessment of your organization’s legal rights and options is critical to navigate this issue effectively.
It is Time to Be Proactive With Your Office Lease Situation
A familiar scenario has played out month after month for many nonprofit organizations during this prolonged period of financial uncertainty, remote work, and virtual programs and meetings. The time has come again to pay another month’s rent for your headquarters office. Frustrated that your office space is going mostly unused, you cut the check and feel like this is a wasted expense. While it is easy to feel helpless in this situation, it is time to start the proactive planning process and take control. There are only no options when you have convinced yourself there are no options.
The Finance Calendar: An Essential Tool that is Useful to All
I need to be more grateful for my “over-worked” and “under-appreciated” finance calendar. In my experience, nonprofit organizations gain comfort from its content and a sense of order and completeness from its structure, as do their many end-users, both inside and outside of the organization.
![Planning Considerations Before Launching a Capital Campaign or Building a New Endowment Fund [SUBSCRIBERS-ONLY]](https://images.squarespace-cdn.com/content/v1/5e6ccadfb4659c1d51df14d5/1707662639369-M908SC575XP2448P43WS/construction-crane-1707150_1920.jpg)
Planning Considerations Before Launching a Capital Campaign or Building a New Endowment Fund [SUBSCRIBERS-ONLY]
Having a vision for the future with aspirations for growth and new major efforts is exciting and can spark energy and enhance a culture of vitality for your organization. Capital campaigns and building an endowment fund can be game-changing tactics, but they come with a whole new set of challenges and risks. It is easy to get excited about these types of funding but hard to have success, especially for nonprofits who have no experience raising these kinds of funds and managing their use.
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Planning for the Next Annual Budget Cycle: Where Do You Start?[SUBSCRIBERS-ONLY]
Compiling the annual budget for the next fiscal year is always a challenge and requires as much pre-planning as possible. During periods of unpredictable volatility, we need to get started early and consider new strategies we might not have used in the past. Top-down budgeting and stress testing your funding sources might be the best way to get started on next year’s budget.
![You Cannot Let Your Guard Down When It Comes to Cyber Security and Fraud [SUBSCRIBERS-ONLY]](https://images.squarespace-cdn.com/content/v1/5e6ccadfb4659c1d51df14d5/1697715107397-1G607IL5YXDLKUWSZ0RJ/monitoring-1305045_1280.jpg)
You Cannot Let Your Guard Down When It Comes to Cyber Security and Fraud [SUBSCRIBERS-ONLY]
Attempted fraud and cyber security breaches are increasing. At the same time, distractions from our chaotic world and new operational realities are averting our attention. This is a bad mix. We need to double-down on efforts to protect our organizations. Reputations and sustainability are at risk, and navigating these threats is even harder during a time of crisis.
The Personal Liability Risks of Nonprofit Board Service
Serving on the Board of Directors of a nonprofit organization can be a rewarding experience that offers the chance to give back to a meaningful cause while providing a learning experience and opportunities to deepen one’s connections and stature within the community. However, this positive experience comes with a level of personal liability exposure under certain circumstances.
It’s Never Too Early to Start the Process of Finding the Right Treasurer
All officer positions on the Board are important. Finding the right experience, diversity, and balance matched to your organization’s evolving needs are key drivers of performance and sustainability. However, the position of Treasurer is special and requires a unique skillset. Thus, starting the process of finding the right Treasurer early and thoughtfully will benefit your organization substantially.
A Window of Opportunity for Collaboration Between Nonprofits is Opening
Numerous changes have been thrust upon nonprofits in quick succession this year. While these changes have brought on stark challenges, they have also opened up new possibilities for collaboration between organizations. This window of opportunity may not be open for long, so nonprofits should act now to take a serious look.
Adapting your Senior Executive Transition Plan to a New Reality
If your organization has long-standing and effective top senior management team members (CEO, Executive Director, COO, CFO, etc.) approaching the end of their tenure and you have a thoughtful transition plan in place – good for you. However, even the best plans might need adjustments, considering that recent circumstances have changed materially for most organizations. Consequently, reviewing your senior executive transition plan to take advantage of new opportunities and adapt to new hurdles is a most prudent course of action.
The First Page of the Form 990 Is Key to Making a Good First Impression
An organization’s Form 990 is universally recognized as a key source of information by the general public, including constituents, donors, grantors, sponsors, and governments. Yet, I often feel that many nonprofits are not paying enough attention to whether the Form 990 adequately tells the complete story about how hard they work to fulfill their mission.
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Annual Budget Process Assessment: Is Your Budgeting Process Helping to Drive Results? [SUBSCRIBERS-ONLY]
Stepping back once a year to take a high-level assessment of your budget system is both a best practice and a proactive exercise.
There are five important questions to keep in mind as you work through the assessment process.
A Case Study in the Risks of Fiscal Sponsorship
Nonprofit Quarterly recently covered an interesting case of fiscal sponsorship gone wrong. As originally reported by a local news website, Baltimore Brew, the case involves an organization called Strong City Baltimore. This situation is an unfortunate reminder that fiscal sponsorship presents many risks if not done correctly. In particular, the case exposes an often-overlooked reality that fiscal sponsorship cannot work if the fiscal sponsor does not have the capacity and experience to handle the immense responsibility of administering funds for a variety of sponsored projects.