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Successful Charity Auctions Start with Careful Planning
Charity auctions are used by nonprofit organizations of all shapes and sizes. Organizations that are thoughtful with their investment in time and planning can realize major benefits from their charity auctions. However, many nonprofits commit to holding charity auctions without committing to the time, planning, and due diligence necessary to realize the most successful event possible. A poorly planned charity auction can potentially impact net proceeds received, damage the organization’s reputation, and even expose the organization to tax liabilities and other possible risks.
Internal Accounting Controls and the Importance of Perception
Internal accounting controls are an everyday fact of life. They protect nonprofit organizations from many types of risks ranging from theft, fraud, and diversion of assets, to errors and mistakes, to highly sophisticated scams and cyber security threats. Organizations must maintain vigorous and sustainable internal accounting control systems. However, if the perception of an organization’s internal accounting controls is weak, its ability to battle these threats will be greatly reduced.
If Theft or Fraud Happens, Do Not Make It Worse with Silence
It’s hard to find a nonprofit organization that has not been hit by a theft, fraud, or other material diversion of assets. It almost seems inevitable to happen at some point. We must continue to strengthen internal controls and stay vigilant, searching for evolving weaknesses and risk exposures. If a theft or fraud does happen, it is important to be fully transparent with messaging and avoid the tendency to go silent.
The Importance of Operating and Intermediate Cash Management Target Policies
Establishing operating and intermediate cash management target policies will provide many benefits. This simple but often overlooked cash management best practice will augment internal accounting controls, boost cash management awareness, and enhance perceptions that nonprofit organization management systems are significant and robust.
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Conferences Provide Unique Professional Developmental Opportunities [SUBSCRIBERS-ONLY]
Each year there are multiple nonprofit industry conferences that provide unique developmental learning experiences. These multi-day conferences provide interactive learning platforms that together provide enriching learning experiences that are hard to replicate in regular brief stand-alone training and educational sessions. The Nonprofit Symposium (powered by GWSCPA) is one of the best examples of a professional nonprofit industry conference done extremely well and should not be missed.
![Improving Pledge Collections Through Active Communication [SUBSCRIBERS-ONLY]](https://images.squarespace-cdn.com/content/v1/5e6ccadfb4659c1d51df14d5/1709040185198-34WBKMC7ETOQ7QPOE8G6/coins-2825094_1920.jpg)
Improving Pledge Collections Through Active Communication [SUBSCRIBERS-ONLY]
Time can get away from us quickly. This is especially true when it comes to pledges receivable. Nonprofit organizations invest a lot of time and effort in acquiring new pledges. In the rush to bring in new pledges, we sometimes relegate oversight of existing pledges to the back burner. Pledges will be less impactful if collection performance is poor. The key to success is to be thoughtful with management of pledge collections and maintain active and fresh communication with existing pledgors.
![Capacity Risks are Real and Need Attention [SUBSCRIBERS-ONLY]](https://images.squarespace-cdn.com/content/v1/5e6ccadfb4659c1d51df14d5/1709040218849-D6XI3S7NFO1BT359S2QO/wheelbarrows-4518854_1920.jpg)
Capacity Risks are Real and Need Attention [SUBSCRIBERS-ONLY]
Nonprofit organizations need to wake up to the fact that capacity challenges are real and can lead to increased risk exposure. Capacity risks come from many different sources and affect organizations in different ways and at times that are not predictable. Growth and unexpected disruption are the two biggest factors impacting capacity. Expanding risk management practices to include assessments related to capacity will help your organization to meet these twin challenges safely and effectively.
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Optimizing the Use of Restricted Funds Through an Annual Inventory and Assessment [SUBSCRIBERS-ONLY]
Nonprofit organizations can receive restricted funds unexpectedly or they can appear after many years of acquisition efforts. They can be fresh (just arrived) or mature (been sitting around for years). Spending patterns for restricted funds is also constantly changing. Consequently, it is important to periodically pause and take an “inventory” of restricted funds in order to assess the timing and future use of this valuable resource.
Periodically Check Key Performance Indicators (KPIs) to Keep Them Relevant
Nonprofit organizations are doing a better job at embracing change, evolving programs, and adapting operations in response to changing conditions. However, many nonprofits are not updating their assessment tools at the same pace as they are implementing change. Organizations generally use key performance indicators (KPIs) to assess performance and monitor progress, but too often they fail to check whether these assessment tools are still relevant and meeting the needs of the Board and management.
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Matching Gifts Bring Financial Opportunities and Planning Challenges [SUBSCRIBERS-ONLY]
New significant contributions with matching gift components can be a game-changer for nonprofit organizations. However, do not let a potential financial windfall cloud your judgment and decision-making. A matching gift that is not completely understood and optimized will lead to missed opportunities and even to possible negative consequences.
![Supercharge Your Nominations Committee [SUBSCRIBERS-ONLY]](https://images.squarespace-cdn.com/content/v1/5e6ccadfb4659c1d51df14d5/1709990601713-3UAX2OFJJ05F58CMJ20U/pexels-google-deepmind-17485632.jpg)
Supercharge Your Nominations Committee [SUBSCRIBERS-ONLY]
The typical nonprofit organization nominations committee is active for only a short period of time with a single objective: to assemble a list of recommendations for nominees to replace open and expiring officer and director positions. We need to break out of this mode and supercharge our nominations committees by having them meet throughout the fiscal year and broaden and reprioritize their service objectives.
Reporting the Total Number of Volunteers on the Form 990
Nonprofits have only a few touchpoints where a lasting impression can be made in the blink of an eye. These opportunities must be given careful thought so they can be optimized and leveraged before they disappear. The total number of volunteers reported on Page 1, Line 6 of the Form 990 is one of those key touchpoints that most organizations take for granted.
Key Takeaways from the 2021 ASAE Annual Meeting
My expectations and experiences from the virtual 2021 ASAE Annual Meeting were different from last year because I thought for sure we would be meeting in-person this year, which, of course, turned out not to be the case. This simple statement was confirmation that the world around us has changed for the long term. Three observations hit home that made a deep impression related to nonprofit organization management practices: listen with purpose, stop using outdated contract templates, and take a fresh look at policies.
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Nonprofits Should Stress Test Funding on a Regular Basis [SUBSCRIBERS-ONLY]
Stress testing a nonprofit organization’s funding seems like a frightening proposition, conjuring images of doom and gloom. This is not the case at all. Regular stress testing of funding will enhance strategic planning, raise awareness of changing conditions, and stimulate an earlier call to action. All funding sources, both strong and weak, will benefit from these regular efforts.
![Enterprise Resource Planning Should be About Mission, Not Just Systems [SUBSCRIBERS-ONLY]](https://images.squarespace-cdn.com/content/v1/5e6ccadfb4659c1d51df14d5/1709991005676-UP6TOM3ZO6RDLPOK538Q/chris-liverani-dBI_My696Rk-unsplash.jpg)
Enterprise Resource Planning Should be About Mission, Not Just Systems [SUBSCRIBERS-ONLY]
Enterprise Resource Planning (ERP) is a hot topic in the field of nonprofit operations. Business systems need to run at maximum efficiency. We also need robust system integration to help nonprofit organizations to adapt to rapidly changing economic conditions (funding) and demand for services (programs and activities). However, ERP focus is too often centered on business systems by themselves when attention should be focused on mission and purpose.