Recent News & Blog / Nonprofit
Nonprofits: Why private foundations need to avoid self-dealing
The IRS strictly prohibits self-dealing between private foundations and “disqualified persons.” Self-dealing generally includes lending money and extending credit and providing goods and facilities. Financial penalties for violations can range from 5% up to 200% of the amount involved in a transaction. Contact the CPAs and business advisors at SEK for questions on staying compliant.
Nonprofits: Thinking ahead to your next Form 990
The deadline for calendar-year not-for-profits to file Form 990 with the IRS has come and gone. But it’s never too early to think about reporting responsibilities for the next deadline. Work with the CPAs and business advisors at SEK to help ensure you accurately track activities during the year and are prepared to file Form 990.
Nonprofits: Gather information from clients without triggering survey fatigue
The sheer number of feedback requests has resulted in a widespread sense of “survey fatigue” among Americans. To overcome this barrier and find out what your nonprofit’s clients think about your programs, you likely need to go beyond offering online surveys with your email newsletters and on your website and social media platforms. Contact the business advisors at SEK for more information.
Nonprofits: Act thoroughly on audit findings
External audits can help assure your nonprofit’s stakeholders of your financial stability and help prevent fraud losses. Often, audit reports recommend actions organizations need to take. If you fail to make changes that respond to a report’s concerns, it could threaten your nonprofit’s future. Contact the CPAs and business advisors at SEK to answer your nonprofit audit questions.
Combatting negative public perceptions of your nonprofit
Although Americans trust philanthropic organizations more than government and businesses, almost a third believe not-for-profits are on the “wrong track,” according to a 2023 survey. But there are ways to manage public perception to help your nonprofit weather unexpected crises.
Nonprofits: Weighing potential risks and returns of alternative investments
Alternative investments may appeal to your not-for-profit because they can offer higher long-term performance than traditional securities do. But before your organization allocates investment dollars to hedge funds, private equity or cryptocurrency, consider potential tax implications. Contact the CPAs and business advisors at SEK for more information.
Are your volunteers risking legal and tax liability?
Nonprofit leaders need to ensure their organizations carry adequate insurance and have risk mitigation policies in place. They also need to ensure that volunteers are reimbursed only for actual out-of-pocket expenses they’ve incurred on behalf of the organization. Otherwise, reimbursements could be considered taxable income. Contact the CPAs and business advisors at SEK for more information.
Disaster relief charities: Know the rules before providing aid
Tax-exempt disaster relief charities are allowed to provide short-term emergency assistance and long-term aid to ensure that victims have necessities. But they must observe IRS rules. For more help following guidelines, contact the CPAs and business advisors at SEK.
Nonprofits don’t lose as much to fraud, but risk requires action
Nonprofits suffer a median loss of $76,000 per fraud incident, according to the Association of Certified Fraud Examiners’ 2024 Report to the Nations. If your organization can’t afford to lose that much (and what nonprofit can?), make sure you have strong internal controls. This starts with training staffers, board members and some volunteers to recognize and report fraud. Contact the CPAs and business advisors at SEK for help with internal controls.
Nonprofits: Board committees can help members make time for critical work
For many not-for-profits, maintaining a full and active board of directors is challenging. But breaking down the workload by committee can help give board members a focus for their efforts. Contact the CPAs and business advisors at SEK with your nonprofit questions.