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![The Case for Capitalizing Portable Electronic Devices (PEDs) [SUBSCRIBERS-ONLY]](https://images.squarespace-cdn.com/content/v1/5e6ccadfb4659c1d51df14d5/1708829753340-FXKX30FD1R3ASK09NL3B/nastya-dulhiier-Ihi56-Qs39U-unsplash.jpg)
The Case for Capitalizing Portable Electronic Devices (PEDs) [SUBSCRIBERS-ONLY]
Nonprofit organizations are now accustomed to living with changing conditions. Change can come in many different forms, from dramatic and fast (remote working, inflation) to subtle and out of sight (technology, rules, and regulations). A noteworthy example involves portable electronic devices (PEDs), which have seen subtle steady changes leading to lower cost with expanded performance and capacity. These changes have led to new risks that deserve special attention.
![How Nonprofits Can Better Manage Overhead Expenses [SUBSCRIBERS-ONLY]](https://images.squarespace-cdn.com/content/v1/5e6ccadfb4659c1d51df14d5/1709126597632-SJHVEWF0DRESA41HDB7F/joanna-kosinska-bF2vsubyHcQ-unsplash.jpg)
How Nonprofits Can Better Manage Overhead Expenses [SUBSCRIBERS-ONLY]
Managing a nonprofit organization’s overhead (management and general) expenses is just as important as managing program and fundraising expenses. Most nonprofits would not dispute this statement. However, most organizations tend to put an inordinate focus on managing program and fundraising expenses and ignore or not give equal attention to managing overhead expenses.
![Use Key Assumptions to Focus and Frame Planning and Messaging [SUBSCRIBERS-ONLY]](https://images.squarespace-cdn.com/content/v1/5e6ccadfb4659c1d51df14d5/1709213659071-1EHHWCS039H4QU9JFZER/volodymyr-hryshchenko-x_OKGbxB3fA-unsplash.jpg)
Use Key Assumptions to Focus and Frame Planning and Messaging [SUBSCRIBERS-ONLY]
My favorite “go-to” tactic for working though complex planning challenges is to develop a short list of “key assumptions” that focuses on strategic objectives and desired results. This approach helps to simplify messaging and fast-track consensus and approval by diminishing feelings of negativity and confusion.
![Applying Segregation of Duties Beyond Standard Checks and Balances [SUBSCRIBERS-ONLY]](https://images.squarespace-cdn.com/content/v1/5e6ccadfb4659c1d51df14d5/1703076274184-7X2WNVD9MZLG1MQWZF0R/claudio-schwarz-YxywelymVuE-unsplash.jpg)
Applying Segregation of Duties Beyond Standard Checks and Balances [SUBSCRIBERS-ONLY]
Segregation of duties is a bedrock principal of internal accounting control systems and is visible in many elements of nonprofit organization accounting policies and procedures. Without segregation of duties, internal accounting control systems would not be safe or effective. Less often recognized is the powerful impact segregation of duties can have when applied to operational planning and resource management.
CHECKLIST: Simplified Balance Sheet Assessment
Balance sheets are part of standard nonprofit organization financial reporting, but are intimidating to most individuals and often misunderstood. This 3-step checklist uses easy-to-understand “Yes” or “No” questions to help you to work through a new balance sheet and make a quick assessment of an organization’s current financial position and changing financial health trends.
![Determining When to Involve the Board in HR Matters [SUBSCRIBERS-ONLY]](https://images.squarespace-cdn.com/content/v1/5e6ccadfb4659c1d51df14d5/1693932375384-7CTF3L66IYR1BRDGG2YP/marcelo-franchi-oMxU_lOmC84-unsplash.jpg)
Determining When to Involve the Board in HR Matters [SUBSCRIBERS-ONLY]
Nonprofit organizations must be extra vigilant when it comes to managing unexpected and often rapidly changing human resources (HR) issues. Hesitation to react can lead to dire consequences. However, reacting without meaningful contemplation can be equally dangerous. One critical consideration is how to develop guidance for discussions and messaging with Board members on changing HR issues.
![Capital Campaigns and the Impact of Donor Fatigue [SUBSCRIBERS-ONLY]](https://images.squarespace-cdn.com/content/v1/5e6ccadfb4659c1d51df14d5/1709300600932-YQTBDMPPVE36S83IOUS9/alexander-grey-tn57JI3CewI-unsplash.jpg)
Capital Campaigns and the Impact of Donor Fatigue [SUBSCRIBERS-ONLY]
Capital campaigns generate a lot of excitement and buzz for nonprofit organizations. Leveraging and harnessing this energy feeds hope for a brighter future. However, nonprofits must maintain a focus on protecting long-term financial health. At the conclusion of the capital campaign, the organization must be in a stronger position. One critical consideration is gauging the negative impact on current and future cash in-flows resulting from donor fatigue.
![Use This Simple Question to Improve Board and Committee Member Engagement [SUBSCRIBERS-ONLY]](https://images.squarespace-cdn.com/content/v1/5e6ccadfb4659c1d51df14d5/1695142653698-88XAU223OH4O5CJQD7K3/isabel-maria-guner-velasco-M3ymaLBPMQ8-unsplash.jpg)
Use This Simple Question to Improve Board and Committee Member Engagement [SUBSCRIBERS-ONLY]
Keeping nonprofit organization Board and committee members engaged is often more art than science. The reason this task is so difficult is because of the delicate balancing act between gratitude and appreciation. It is relatively easy to show gratitude and thank volunteer leaders for attending meetings. It is another thing to make sure these volunteer leaders leave each meeting with a feeling that it was a good use of their time, that they were actively involved in discussions, and the organization appreciated and valued their input.
![Enhanced Management Strategies for Indirect Costs [SUBSCRIBERS-ONLY]](https://images.squarespace-cdn.com/content/v1/5e6ccadfb4659c1d51df14d5/1709126523556-UU7SPG0LT9HK0SVBH80S/tablet-254581_1920.jpg)
Enhanced Management Strategies for Indirect Costs [SUBSCRIBERS-ONLY]
There are many aspects to consider when it comes to managing a nonprofit organization’s indirect costs. We often think first about compliance rules, which are naturally complicated and can vary by funding source and an organization’s own internal accounting policies and procedures. One aspect we tend not to emphasize enough is staff and their propensity to be disinterested and disconnected when it comes to considering and managing indirect costs.
Three Steps to Be Better Prepared for Public Disclosure Requests
How a nonprofit organization responds to public disclosure requests provides a clear window to its commitment to accountability and transparency. However, many organizations are insufficiently prepared to respond to requests for documents. This can lead to compliance failures and/or inadvertently sharing sensitive information that was not required to be disclosed.
![Audit Planning Calendars Can Make Audits Less Stressful and More Efficient [SUBSCRIBERS-ONLY]](https://images.squarespace-cdn.com/content/v1/5e6ccadfb4659c1d51df14d5/1708791377742-HS2EGEXSLWLWC8DBVTV5/board-218535_1920.jpg)
Audit Planning Calendars Can Make Audits Less Stressful and More Efficient [SUBSCRIBERS-ONLY]
Financial statement audits have natural “built-in tensions” between nonprofit organizations and their independent auditors. These tensions are advantageous from a checks and balances point of view but can lead to communication challenges if not properly managed. Agreeing on a detailed planning calendar at the front end of the audit will make for a less stressful and more efficient audit process.
![Aligning Investing Purpose to Institutional Mission and Culture [SUBSCRIBERS-ONLY]](https://images.squarespace-cdn.com/content/v1/5e6ccadfb4659c1d51df14d5/1695078743847-JHV3GVLD4SYG6VDZ7FPT/directory-235079_1920.jpg)
Aligning Investing Purpose to Institutional Mission and Culture [SUBSCRIBERS-ONLY]
An increasing number of nonprofit organizations are implementing mission aligned investing and this approach may soon become an expected best practice. Core investment acumen will always be focused on safety, liquidity, and return on investment (ROI), balancing the risk/reward of these three key investment pillars. However, many nonprofits with investable funds now consider mission aligned investing as an important fourth pillar of their investment strategy.
Three-Dimensional Financial Messaging
The delivery and interpretation of financial reports is a complex and sometimes unpredictable process. It becomes even more complicated when you realize that the target audience consists of multiple end-users who will be considering financial information from multiple points of view. Effective financial messaging tactics that incorporate a three-dimensional (3-D) tactical approach will give you more options and opportunities to connect with the many different types of users of financial information.
![Adding Pre-Month-End Closing Meetings Can Enhance Financial Communications [SUBSCRIBERS-ONLY]](https://images.squarespace-cdn.com/content/v1/5e6ccadfb4659c1d51df14d5/1703031923720-REQEY4SAWNKKSPD3H424/pexels-towfiqu-barbhuiya-9810172.jpg)
Adding Pre-Month-End Closing Meetings Can Enhance Financial Communications [SUBSCRIBERS-ONLY]
I am always looking for efficient, creative, and low risk opportunities to improve financial communications. This usually involves both art and science, a mix of creative and structured tactics. Adding pre-month-end closing meetings is a value-added practice that takes advantage of both tactics with high upside potential for positive results.
![Time to Take a Fresh Look at Old Board-Designated Funds [SUBSCRIBERS-ONLY]](https://images.squarespace-cdn.com/content/v1/5e6ccadfb4659c1d51df14d5/1709987619004-PP72M5ZUDFOO03FFTIBG/oskars-sylwan-TaDYbj5q1Gc-unsplash.jpg)
Time to Take a Fresh Look at Old Board-Designated Funds [SUBSCRIBERS-ONLY]
In my professional life I view many financial statements from a wide variety of nonprofit organizations, and I am always amazed, but not shocked, by how many of these nonprofits have Board-designated funds sitting on their balance sheets. Two questions immediately come to mind. Why where they originally established? Is the purpose still relevant today? Often the answers lie in understanding the circumstances occurring at the time the Board originally designated the funds.