For Nonprofit Boards, Numbers Are a Necessity As a Board member for a nonprofit organization, you’re expected to attend Board meetings, monitor fundraising and management, digest reports, and help the organization determine its strategic direction. You’re also expected—and, indeed, compelled by law—to oversee the organization’s finances as part of the fiduciary responsibility of a Board. …
Category: Financial Assessment
[Case Study] Parish Drives 22% Increase in Donations with Sage Intacct
After falling behind on annual audits, St. Columba’s recognized it was time to make a change and brought in a team from Chazin & Company. The Sage Intacct Accountants Program partner conducted a full assessment of St. Columba’s financial operations and recommended specific next steps to revamp the Church’s processes. Chazin & Company streamlined the…
Do Nonprofits Have to Pay Income Taxes?
Did you know that sometimes nonprofits must pay income tax? It’s true. Just because you have a tax-exempt status, it does not mean that you’re, well, tax exempt! The IRS incorporated into the tax codes something called Unrelated Business Income (UBI) and it’s especially for nonprofit organizations. Frequently, nonprofits have revenue that the IRS considers unrelated to…
The Importance of Accounting Manuals
Accounting manuals are key to any organization, regardless of the type. Although the task of creating an accounting manual might seem daunting, it is a worthwhile endeavor. This blog post will explore the benefits and identify the key components of an accounting manual and as an added bonus you can download a typical table of…
What is a Month-End Close and Why Does Your Organization Need It?
When you want to change your diet to achieve better health, it is helpful to start by getting on the scale. If you don’t do this, it is difficult to determine if what you’re doing is actually working. To really be proactive, you should get on the scale regularly and consistently so you can continuously…
How to Build a Powerful & Strategic Nonprofit Dashboard
A dashboard allows a nonprofit to monitor both the effectiveness of this enterprise or business model, as evidenced by the organization’s financial health, and the impact of the programs and services being provided. The process of developing a powerful organizational dashboard should be inclusive and based on strategy, but the metrics should be sparing—with a…
Cash Flow Management for Nonprofits
Cash flow management in any organization is nothing more than the mix and timing of cash receipts and cash payments. In its most simplistic form, it is cash in and cash out and, ultimately, it is where budgets, projections and forecasts meet reality. It is critical to ensuring that funds are available to pay the…
Is Now the Time for an Assessment of Your Accounting and Finance Function?
An assessment can be a valuable tool in determining the current state of your organization’s accounting and finance function. Not having a good grasp of this information can lead to challenges down the road such as inaccurate data used in decision-making or even an unfavorable management letter from your external auditor. A comprehensive accounting and…
The Importance of Investment Policies
5 Steps for Nonprofits to Develop a Wise Investment Policy Nonprofit boards have a fiduciary responsibility to protect the organization’s assets and ensure that they’re used to further the mission. Often, an important part of the board’s responsibility is deciding how to invest the nonprofit’s cash. That requires implementing a sound investment policy that balances…
The Importance of Reserve Policies
5 Keys to Develop Your Operating Reserve Policy Every nonprofit needs to have sufficient cash flow to meet obligations. Setting aside an operating reserve is a smart practice as it provides a cushion against unexpected events that could temporarily impact the cash flow. Following are five best practices to follow when establishing your operating reserve…