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The Practical Side of Annual Conflict of Interest Disclosure Statements [SUBSCRIBERS-ONLY]
Subscribers-Only, Articles A. Michael Gellman (CPA, CGMA) Subscribers-Only, Articles A. Michael Gellman (CPA, CGMA)

The Practical Side of Annual Conflict of Interest Disclosure Statements [SUBSCRIBERS-ONLY]

Most nonprofit organizations have adopted a code of ethics, statement of values, or code of conduct. Within these statements there is always a reference to monitoring, oversight, and transparency related to conflicts of interest. Having a strong conflict of interest policy strengthens your code of ethics posture. Adding robust annual conflict of interest disclosure statements will project an even higher level of assurance that your organization takes its code of conduct seriously.

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Always Add Written Management Responses When There Are Audit Findings [SUBSCRIBERS-ONLY]
Subscribers-Only, Articles A. Michael Gellman (CPA, CGMA) Subscribers-Only, Articles A. Michael Gellman (CPA, CGMA)

Always Add Written Management Responses When There Are Audit Findings [SUBSCRIBERS-ONLY]

Audit findings are not unusual. Most nonprofit organizations will have many more years with audit findings reported by their auditors than years for which there are no findings. Audit findings tend to produce feelings of negativity and thoughts that something is wrong. Adding thoughtful written management responses will turn negative feelings into positive and constructive actions

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Auditor Continuance: An Annual Question, Not an Annual Change [SUBSCRIBERS-ONLY]
Subscribers-Only, Articles A. Michael Gellman (CPA, CGMA) Subscribers-Only, Articles A. Michael Gellman (CPA, CGMA)

Auditor Continuance: An Annual Question, Not an Annual Change [SUBSCRIBERS-ONLY]

The question of how long to continue with the same auditor is often sitting somewhere off the radar screen. This is both the problem and the answer. The process of asking and answering the auditor continuance question should be part of the audit committee’s standard operating procedures and a standard annual checklist item for the audit committee.

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Recruiting and Using Finance Volunteers in Governance Roles [SUBSCRIBERS-ONLY]
Subscribers-Only, Articles A. Michael Gellman (CPA, CGMA) Subscribers-Only, Articles A. Michael Gellman (CPA, CGMA)

Recruiting and Using Finance Volunteers in Governance Roles [SUBSCRIBERS-ONLY]

Finance should always have a seat at the leadership table within a nonprofit organization. There is an embedded financial impact in all Board and management decisions. To ensure the delicate balancing act of mission vs. financial health is kept front and center, make thoughtful positioning of volunteers with financial experience a priority when finding and seating your Board of Directors and various committees.

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Strong Financial Health Opens the Door to Collaborations with Other Nonprofits [SUBSCRIBERS-ONLY]
Subscribers-Only, Articles A. Michael Gellman (CPA, CGMA) Subscribers-Only, Articles A. Michael Gellman (CPA, CGMA)

Strong Financial Health Opens the Door to Collaborations with Other Nonprofits [SUBSCRIBERS-ONLY]

There are many advantages to participating in joint ventures, coalitions, strategic alliances, or other types of collaborations with other like-minded nonprofit organizations. These types of formal and informal partnerships enable organizations to share programs, capabilities, and gain access to a wider array of members, constituents, and geographic regions. These opportunities multiply if your nonprofit has strong financial health.

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Now is the Time to Push for Changes to Non-Full Cost Funding Practices [SUBSCRIBERS-ONLY]
Subscribers-Only, Articles A. Michael Gellman (CPA, CGMA) Subscribers-Only, Articles A. Michael Gellman (CPA, CGMA)

Now is the Time to Push for Changes to Non-Full Cost Funding Practices [SUBSCRIBERS-ONLY]

Our recent article on the Challenges of Accepting Non-Full Cost Funding prompted compelling and thoughtful comments on the universal problem of non-full cost funding in the nonprofit sector. Many commented that non-full cost funding is a systemic problem that fuels marginalization of the communities, causes, and peoples we serve. To right this wrong, we must draw attention to these problems and advocate for change. Indeed, real sustained effectiveness cannot be achieved if this harmful funding culture continues.

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The Challenges of Accepting Non-Full Cost Funding [SUBSCRIBERS-ONLY]
Subscribers-Only, Articles A. Michael Gellman (CPA, CGMA) Subscribers-Only, Articles A. Michael Gellman (CPA, CGMA)

The Challenges of Accepting Non-Full Cost Funding [SUBSCRIBERS-ONLY]

Most nonprofit organizations are confronted with an unfair choice each year: accept or not accept critical funding that is inherently designed to not cover the full cost of programs and activities for which the funding is provided. This reality has been around for a long time. Looking to the future, we must actively push funders to recognize that sustainability will be damaged if nonprofits continue to be forced to compete for, and pressed to accept, non-full cost funding.

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When to Prioritize Legal Review of Your Nonprofit’s Contracts [SUBSCRIBERS-ONLY]
Subscribers-Only, Articles Benjamin Takis Subscribers-Only, Articles Benjamin Takis

When to Prioritize Legal Review of Your Nonprofit’s Contracts [SUBSCRIBERS-ONLY]

Contracts are the lifeblood of any nonprofit organization’s day-to-day operations, just as with for-profit businesses. In an ideal world free from budget and time constraints, nonprofits would have every contract reviewed by a reputable attorney with the relevant subject matter expertise. However, for some organizations legal review is not always feasible.

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Strategies to Keep Board Members on Track with their Commitments [SUBSCRIBERS-ONLY]
Subscribers-Only, Articles A. Michael Gellman (CPA, CGMA) Subscribers-Only, Articles A. Michael Gellman (CPA, CGMA)

Strategies to Keep Board Members on Track with their Commitments [SUBSCRIBERS-ONLY]

Getting Board members to follow through on their commitments of time and money to the nonprofits they serve can be very challenging. Often, we let our emotions rule, getting frustrated and blaming the Board members for lack of engagement. This is misguided. We need to work harder to help Board members engage at higher levels.

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Financial Teaching Moments are All Around Us [SUBSCRIBERS-ONLY]
Subscribers-Only, Articles A. Michael Gellman (CPA, CGMA) Subscribers-Only, Articles A. Michael Gellman (CPA, CGMA)

Financial Teaching Moments are All Around Us [SUBSCRIBERS-ONLY]

As financial professionals, we are immersed in the language of finance and all its silent and not so silent nuances. To everyone else, the language of finance is mysterious at best and frightening to most. We must constantly strive to make the language of finance accessible to non-financial managers and build their financial acumen and confidence.

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Operating Reserve Policies are a Perfect Vehicle for Targeting Your Budget’s Bottom-Line
Articles, Subscribers-Only, Subscription Preview A. Michael Gellman (CPA, CGMA) Articles, Subscribers-Only, Subscription Preview A. Michael Gellman (CPA, CGMA)

Operating Reserve Policies are a Perfect Vehicle for Targeting Your Budget’s Bottom-Line

Nonprofit organizations would greatly benefit from adopting a standardized policy for strategically targeting and managing their annual budget bottom-line. You could argue that there is no greater safety net for overall financial health than having a formal policy, or at least a budget working rule or guideline, for this important metric.

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Three Key Planning Steps to Get a Head Start on Your Next Audit [SUBSCRIBERS-ONLY]
Subscribers-Only, Articles A. Michael Gellman (CPA, CGMA) Subscribers-Only, Articles A. Michael Gellman (CPA, CGMA)

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.

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A Revenue Aligned Budget is the Safe Way to Go [SUBSCRIBERS-ONLY]
Subscribers-Only, Articles A. Michael Gellman (CPA, CGMA) Subscribers-Only, Articles A. Michael Gellman (CPA, CGMA)

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.

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Some Legal Issues to Consider When Trying to Get Out of Your Office Lease [SUBSCRIBERS-ONLY]
Subscribers-Only, Articles Benjamin Takis Subscribers-Only, Articles Benjamin Takis

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.

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Planning Considerations Before Launching a Capital Campaign or Building a New Endowment Fund [SUBSCRIBERS-ONLY]
Subscribers-Only, Articles A. Michael Gellman (CPA, CGMA) Subscribers-Only, Articles A. Michael Gellman (CPA, CGMA)

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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