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Team Welter

Oct 19
0

Recruiting the Best Accounting Talent to Your Nonprofit Organization

By | Nonprofit | No Comments

Professional sports teams know that to find the top athletes in the country, they must recruit them early from the college teams. Imagine if they merely placed ads, screened resumes and videos of players, and then said, “You’re hired!” It is likely that the process would result in unsatisfactory teams.

 

The same may be said for the method by which nonprofits typically recruit finance and accounting talent. Many nonprofits place job advertisements, screen resumes, interview and hope for the best.

 

If you want to create a “starring team” for your nonprofit, here are a few ideas you can use to recruit top talent into the world of nonprofit finance.

 

Five Ideas to Recruit Top Talent

  1. Develop talent networks: Do not wait for job openings to have your eye on the next employee for your nonprofit. Participate in local networking events for your industry. Join chapters of local nonprofit business leadership organizations. Meet and get to know the top finance and accounting professionals. When an opening arises, you will already be connected to the people you want to recruit onto your team.
  2. Start an apprentice system: Another method to recruit top talent is to build it into an apprentice system at your organization. Offer paid summer internships, work-study programs, and starting positions that grow and develop into leadership positions. Organize your employment structure so that potential employees feel there is room for growth. Reach out to top accounting schools in your area and alert them to apprenticeships. They will grow into their positions, and you will begin working with young, bright graduates eager to succeed.
  3. Recruit widely: Although many aspects of nonprofit accounting are specific to the way in which nonprofits operate, there are many similarities to the for-profit world. A good accountant can quickly learn the differences and apply learnings from the for-profit world to improve operations and efficiencies. Consider recruiting top talent from all industries, not just the nonprofit world.
  4. Network with professors: An interesting but often untapped resource to find smart and rising accounting stars are the professors in the local business schools or universities. Professors know their students well and can attest to their strengths. To get to know the professors, host educational seminars on accounting for nonprofits, FASB changes such as FASB 958, and other pertinent issues. Along with cultivating a local network of accounting professionals, developing a network among the professors can help you later identify promising students to recruit into your organization.
  5. Consider competitions: A competition for the best business plan, paper or other accounting-related project offered through local universities can attract bright accounting talent. You can then assess their work by reviewing their submissions.

Creating an Environment Attractive to Professionals

The Society of Human Resource Managers (SHRM) conducts annual surveys among human resources managers to assess the most appealing benefits for different age brackets. Among their findings, SHRM reports that to attract highly skilled professionals, companies must offer attractive benefits packages.

Senior-level professional workers, such as top-level accounting and finance professionals, value health care benefits, retirement packages, similar traditional benefits packages. Younger workers, however, are open to additional benefits and find flex time, telecommuting, and unpaid leave opportunities valuable.

 

Nonprofits that have trouble attracting senior-level talent may wish to re-examine their benefits packages. Beefing up the healthcare package as much as possible and offering other benefits, such as telecommuting and flex time, may make your organization more appealing to potential employees.

 

Welter Consulting

Welter Consulting offers financial reporting, compliance, and software to help nonprofits with their accounting needs. We focus solely on nonprofits, bridging the information gap between nonprofits and business disciplines. We are passionate about helping nonprofits success. For more information, visit us or call 206-605-3113.

 

Oct 12
0

Findings from the Northwest Nonprofit Capacity Report

By | Accounting, Nonprofit | No Comments

The Northwest Nonprofit Capacity report for 2016 recently released points to resiliency and advocacy throughout the northwest, with a healthy and growing nonprofit base. The full report may be accessed online for those interested in the comprehensive picture of nonprofit activity in our region.

 

Capacity-building, both for continuing existing work and creating growth for the future, remained a top concern for all nonprofits regardless of their mission. Among the areas of greatest concern are:

1. Human resources: All human resources activities were of concern, but the need for staff and expanded staffing was at the top of the list. Specific        skills such as grant writing, fundraising, technology skills and other skills may be difficult to find for specific nonprofits. Maintaining and managing      human resources for an organization remains challenging as well.

2. Facilities: Many nonprofit organizations hoped to improve their facilities and equipment. Capital campaigns to build new facilities or upgrade             existing ones are a shared concern. Improving and updating necessary equipment also ranks high on the capacity-building needs.

3. Fundraising: There’s probably no nonprofit in the country that doesn’t wish it had better fundraising, but fundraising ranked third on the list of        concerns for northwestern nonprofits.

4. Communications: Greater community outreach and awareness is a shared desire among nonprofits responding to the survey.

5. Strategy and leadership: Without exception, nearly all felt they needed to become more proficient at the business side of running a nonprofit.          This includes improving leadership, strategic decision making, and other skills.

Five nonprofit, state-based associations participated in the survey. These included Alaska, Washington, Oregon, Montana and Idaho. Although serving a diverse array of needs, they all reflect a consensus around improved business practices, communications and community outreach, and additional resources to fulfill their mission.

 

Nonprofit Accounting: Gaps

One surprising result of the survey is that only 77% of nonprofits in the northwest have a written annual budget. About the same number have such a budget approved by a board, and use it. Slightly fewer agree that their budget is ‘effective.’

 

Budgeting is critical for nonprofits to remain healthy and viable. Understanding the nuances of your financial situation, apportioning funds accordingly, and diversifying income streams are all part of running a sound nonprofit.

 

Other key findings related to accounting show a significant lack of written fundraising plans. Only about 43% of respondents have a written plan, and approximately 33% find such a plan effective The remaining majority of nonprofits either do not have a plan at all or have a verbal plan agreed upon by their members.

 

Such haphazard fundraising efforts may lead to uneven income. Although grants, membership fees, and other funding may provide a solid foundation, without additional fundraising activities you run the risk of critical shortfalls should any of these routes fail to be productive in a given year. Diversifying fundraising efforts is just as smart as diversifying personal investments.

Perhaps most troubling of all is the lack of business planning among northwest nonprofits. Fewer than 25% have a written business plan. The old adage, “Those who fail to plan, plan to fail” may be true. A business plan also provides a solid base upon which a nonprofit can build and grow. Without it, your organization may suffer from mission or scope creep and unproductive activities.

 

Hopeful Signs, Room for Improvement

The report shows both many hopeful signs as well as room for improvement. Business strategies, financial management, and other quantitative disciplines must improve for nonprofits in the northwest to remain healthy.

 

The many hopeful signs, such as a strong commitment to change and growth, point to a positive outcome despite these limitations.

 

Welter Consulting

Welter Consulting offers financial reporting, compliance, and software to help nonprofits with their accounting needs. We focus solely on nonprofits, bridging the information gap between nonprofits and business disciplines. We are passionate about helping nonprofits success. For more information, visit us online or call 206-605-3113.

 

 

Jul 23
0

Fee For Tax-Exempt Application Drops

By | Nonprofit | No Comments

By The NonProfit Times – July 21, 2016

Nonprofits that plan to operate as a 501(c)(4) social welfare organization must file a new form with the Internal Revenue Service (IRS) while fees for a new streamlined application for tax-exemption have been cut by a third.

The user fee for Form 1023-EZ, the application for recognition of exemption under 501(c)(3) of the Internal Revenue Code, dropped from $400 to $275, as of July 1. The Form 1023-EZ was revised last year and is now is just three pages long compared with the full Form 1023, which is 26 pages.

The changes were made to try to eliminate a backlog of some 170,000 applications for tax-exemption in 2014, although not without some consternation from observers like the National Council of Nonprofits and National Association of State Charity Officials.

Most organizations with gross receipts of $50,000 or less and assets of $250,000 or less are eligible to file the 1023-EZ. Federal agencies are required to review user fees every two years to determine whether they are recovering the full cost of certain services and if a user fee should be charged. The IRS recently completed its 2015 biennial review, which determined the cost of providing some services increased while others decreased.

Organizations seeking to be 501(c)(4) social welfare organizations will be required to file new Form 8976, “Notice of Intent to Operate Under Section 501(c)(4),” as of July 8, 2016.

Section 506 was added to the Internal Revenue Code (IRC) after passage in December of the Protecting Americans from Tax Hikes (PATH) Act of 2015. The new rule applies to 501(c)(4) organizations formed after Dec. 18, 2015. Organizations are not required to submit the notification if they applied for a determination letter or filed a Form 990 after Dec. 18, 2015, but on or before July 8, 2016. For organizations that don’t qualify for this relief, temporary regulations also provide for a transition rule that extends the due date of notification until Sept. 6, 2016.

Form 8976 can only be completed and submitted electronically. Organizations must notify the IRS within 60 days of formation and a $50 fee must be submitted via Pay.gov to complete the process. Organizations that filed a Form 990 or Form 1024 seeking a determination letter on or before July 8, 2016, are not required to file the notification.

Organizations that do not submit the notification within 60 days may be subject to a penalty of $20 per day for each day it’s not submitted, up to a maximum of $5,000.

http://www.thenonprofittimes.com/news-articles/fee-tax-exempt-application-drops/

Jul 10
0

New Webinar Added to the Enrichment Series!

By | Accounting, Nonprofit, Nonprofit Enrichment Series, Uncategorized, Unclaimed Property, Webinar | No Comments

Unclaimed Property Requirements and Solutions

Thursday, Aug 11, 2016 9:00 AM – 10:00 AM PDT
Click here to register

Ensuring compliance with unclaimed property state requirements and making the process less painful and cumbersome is key to this free webinar. Learn what constitutes “unclaimed property”, and the major changes to the Unclaimed Property Law that impacts all holders of unclaimed property. Receive an overview of the unclaimed property reporting process and some of the various techniques that auditors use to uncover unclaimed property. Understand the various types of property that may be claimed by the states as unclaimed property and learn various possible structuring techniques to reduce unclaimed property liabilities.