Tag: Not-for-Profit

Not-for-profit organizations in the District of Columbia (DC) are required to submit Form FR-164 to the Office of Tax and Revenue (OTR) to request tax-exempt status in DC. Previously, this was a one-time filing requirement, but due to changes in 2019, DC not-for-profit organizations must renew their DC tax-exempt status every five years. The OTR will send two notices, one 180 days before the expiration of an organization’s exemption certificate and another 30 days before expiration.  Not-for-profit organizations that renewed… Read more ›

This article is part of an ongoing series published by CBM’s accounting and advisory group. Click here to learn more about how the group’s consultative approach to serving for- and not-for-profits can help grow your business. In today’s fast-paced and uncertain financial environment, financial risk management is a crucial discipline that can mean the difference between success and failure. Financial risks can come in various forms, from market fluctuations to unexpected crises. Organizations should always be well-prepared to identify and… Read more ›

If your not-for-profit organization expects its board members to play a fundraising role, you probably already know how difficult it can be to motivate them. They’re busy people, and even when they have excellent connections, they’re not always comfortable asking those in their network for money — however noble the cause. Fortunately, there are ways you can help board members overcome their reservations. Up Front and Personal Board members are obligated to help your organization implement its revenue strategy, and… Read more ›

If your not-for-profit focuses most of its fundraising energy on donors who can contribute to your mission and programs now, you may have neglected legacy gifts. Such gifts represent a portion of wealthy donors’ estates that go to your organization on their death. Legacy gifts can help position your nonprofit for sustained growth well into the future. Let’s take a closer look at the hows and the whys. Mechanics of Giving The vast majority of legacy gifts are made through… Read more ›

Unlike some fishing enthusiasts, not-for-profits don’t usually “throw back” contributions from the small fry in its donor base. Modest donations, after all, add up. But landing some big fish can make a whale of a difference to an organization’s financial security.Unfortunately, major donors don’t usually knock on a charity’s door and hand over millions of dollars. You have to work to find them and then earn their trust and confidence. Here are seven practical suggestions: Upsize your annual fund. Your… Read more ›

Organizations that are created to provide goods or services exclusively (or primarily) to Section 501(c)(3) organizations (or governmental entities) may think that this purpose is sufficient to also qualify them under tax law. However, providing commercial-type services exclusively to exempt organizations is not by itself an exempt purpose. Much more is required for qualification under the rules of Internal Revenue Code Section 501(c)(3) than just having a mission to assist charitable organizations. Basic Requirements An exemption under tax code Section… Read more ›

Revenue generated by 501(c)(3) organizations is generally exempt from federal income tax. But in some cases, your not-for-profit may incur unrelated business income tax (UBIT) on revenue. The good news is your annual tax return may offer some relief in the form of deductions. The list isn’t as long as the “ordinary and necessary business expenses” for-profit entities can deduct, but here are six common nonprofit deductions to know about: 1. Wages. Just as for-profit businesses, your nonprofit can deduct… Read more ›

Is your organization prepared for a crisis that could threaten its survival? It could be anything from a devastating economic downturn, to a domestic abuse or sexual harassment scandal involving a high-ranking official, to a natural disaster that destroys your main offices. Regardless of the nature and extent of the crisis, prompt action is required. First things first: Don’t panic. Second, this is the time for not-for-profit management, including the board of directors, to step up and provide leadership. The… Read more ›

You know the drill: It’s midnight and your grant proposal is due tomorrow. Your assistant left hours ago and the words on your screen have started to blur. “It’s not worth it,” you think. And besides, only a few grants pan out anyway, right? Not necessarily. Grants are a big part of the not-for-profit world. And yet, according to Dennis P. McIlnay’s book, How Foundations Work, less than 10% of grant proposals are ever funded. That’s probably why grant writing… Read more ›

The 403(b) plan is often thought of as a 401(k) plan for nonprofits. It’s probably not the only option for your not-for-profit, but it can provide certain advantages over 401(k)s. Following is a brief rundown. Generous Contribution Limits A 403(b) plan is a tax-favored qualified retirement plan set up for employees of not-for-profit organizations, including charities, hospitals, schools and government entities. As with other qualified plans, pre-tax contributions grow tax-free until withdrawals are made. Normally, employee contributions are deducted from… Read more ›