2024 Nonprofit Edge

Nonprofit accounting has distinct features compared to for-profit accounting due to the nature and goals of nonprofit organizations. Nonprofits focus more on the accountability aspect of accounting. There is a specific set of rules and procedures regulated by Generally Accepted Accounting Principles (GAAP) set by the Financial Accounting Standard Board (FASB) that help them stay accountable to their donors and contributors.

There are multiple ways that nonprofit organizations can lose their tax-exempt status, and it’s important for directors, employees, and volunteers to stay informed about what actions could potentially jeopardize the status. With a bit of increased awareness and employee training, it is easy for organizations to remain compliant.

In any online environment, there are risks of computer systems being hacked, data being stolen or manipulated, and privacy breaches occurring. Unfortunately, many not-for-profit organizations are woefully underequipped to protect themselves from these attacks due to financial, technical, or other restraints. While there is no single solution that will work for all organizations, there are many simple steps that any organization can take to improve their online security and minimize risks from both internal and external threats.

Donor-Advised Funds are investment vehicles designed to allow individuals to contribute to the Funds and recognize the contribution as a charitable donation in the year it was made. The funds are then managed by advisors and eventually contributed to charitable organizations of the contributor’s choice.