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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

Is your business depreciating over 30 years the entire cost of constructing the building that houses your enterprise? If so, you should consider a cost segregation study. It may allow you to accelerate depreciation deductions on certain items, thereby reducing taxes and boosting cash flow. Depreciation basics Business buildings generally have a 39-year depreciation period

Disaster-relief charities have long contended with sudden influxes of attention and donations. But any nonprofit could face this enviable “problem.” While your nonprofit is in a period of relative calm, consider how you might handle it. For example, track normal website traffic so you’ll recognize when interest in your organization is surging. Make sure you

Whether it’s inflation, trouble finding staffers in a tight labor market or cybersecurity, nonprofit leaders have a lot to worry about. Even though the economy is generally healthy, you can strengthen your not-for-profit to help withstand future challenges. First, keep an eye on cash. Routinely prepare cash and expense projections and review regular reports on