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Bookkeeping refers to the systematic storing of financial documentation and recording of daily financial transactions. Bookkeepers record journal entries for each transaction using accounting software. They also may be responsible for sending invoices, processing payments and payroll, conducting banking activities, and reconciling accounts. The records maintained by the bookkeeper are used to generate historic and […]

Elite athletes cross-train to promote full-body strength, enhance performance and reduce the risk of injury. Nonprofits that cross-train staffers on one another’s jobs can reap similar results. If your employees understand the basic functions of other positions, they can jump in and help out if someone goes on disability leave or there’s a work surge

Accurate bookkeeping is essential to operating a successful small business. Unfortunately, it’s common for entrepreneurs to underestimate the importance of maintaining organized books and records. Common pitfalls include commingling personal and business bank accounts, relying on spreadsheets instead of accounting software to track business transactions and using personal credit for business expenses. Plus, some owners

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. For example, strive to be transparent and make communicating how you use donor funds a

Even though the federal Volunteer Protection Act of 1997 and various state laws provide nonprofit volunteers with some legal liability protection, volunteers still face real risks for actions they take while working for your organization. Nonprofit leaders need to ensure their organizations carry adequate insurance and have risk mitigation policies in place. They also need

To be financially fruitful, nonprofit events need adequate sponsorship to cover a portion of expenses. Whether you’re planning a gala, a conference or something else, start early to beat out competition for philanthropic dollars. Look for high-quality sponsors whose products and services match your nonprofit’s mission and whose target customers are similar to your event’s

If you donate valuable items to charity and you want to deduct them on your tax return, you may be required to get an appraisal. The IRS requires donors and charitable organizations to supply certain information to prove their right to deduct charitable contributions. How can you protect your deduction? First, be aware that in

Vacation homes in upscale areas may be worth way more than owners paid for them. That’s great, but what about taxes? Here are three scenarios to illustrate the federal income tax issues you face when selling an appreciated vacation home. Scenario 1: You’ve never used the home as your primary residence In this case, the

If you’re a philanthropic individual who is also obligated to take required minimum distributions (RMDs) from a traditional IRA, you may want to consider a tax-saving strategy. It involves making a qualified charitable distribution (QCD). How it works To reap the possible tax advantages of a QCD, you make a cash donation to an IRS-approved

If you want to withdraw cash from your closely held corporation at a low tax cost, the easiest way is to distribute cash as a dividend. However, a dividend distribution isn’t tax efficient since it’s taxable to you to the extent of your corporation’s “earnings and profits,” but it’s not deductible by the corporation. 5