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Nonprofit

Jan 20
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3 Nonprofit Management Tips To Maximize Results Without Sacrificing Passion

By | Nonprofit | No Comments

Colored PencilsIf you work in a managerial position at a nonprofit, you know that there are certain issues that are unique to the nonprofit world.  Many nonprofits have to work with the funds they have, not the funds they would like to have.  And although many talented workers are interested in working for nonprofits, the lower salaries tend to result in a high turnover.  Of course, there are nonprofits which don’t face these problems but, by and large, many of them do.  Here are a few tips to keep in mind when it comes to nonprofit management:

  1. Passion vs. Practicality.  It sounds like a Jane Austen novel (Sense and Sensibility) but passion and practicality are two qualities that are often in conflict with each other.  Often, people who are passionate about a certain cause enter the nonprofit world because they’re looking to make a difference.  People who are practical generally go for the for-profit world since this is where they are likely to get better salaries.  However, it can really be beneficial to a nonprofit organization to have both, passion and practicality in its employees.  This is something that you can look out for at the managerial level.
  2. Creating a Feeling of Family.  It helps to create a familial feeling in any kind of organization, whether it’s for-profit or not-for-profit.  However, it’s particularly beneficial to a nonprofit organization because you’re already working on a tight budget and with employees who are likely to get disillusioned after a while due to the heavy workload.  Prevent this from happening by creating a friendly, congenial atmosphere around the office.  Let employees know that they are appreciated with little gestures.  Even a company mug or a small cake on someone’s birthday can help them to feel like they belong.
  3. Preventing Burnout.  Employees often leave nonprofit organizations because they start feeling burnt out.  This is especially true if they are constantly in contact with people who are in need of help.  If your nonprofit organization works with victims of domestic violence or the homeless, this can take an emotional toll on your employees.  Encourage employees to be good to themselves by preventing them from working too much overtime.  Everyone needs a vacation or a day off now and then, but this is especially true with nonprofit employees.

It can be immensely satisfying to work at a nonprofit and know that you’re helping people.  Contact us for more nonprofit management tips that will help make sure your workforce shares this optimism.

Jan 16
0

For Improved Nonprofit Transparency Look to the Sarbanes-Oxley Act

By | Nonprofit | No Comments

iStock_000022227728XSmallThe Sarbanes-Oxley Act or “The American Competitiveness and Corporate Accountability Act of 2002” was originally passed to address corporate malfeasance but has since been used by many organizations to improve their nonprofit transparency and internal controls.

The components of the Sarbanes-Oxley Act that are relevant to nonprofits are:

  • The Act governs the Board of Director’s Audit Committee. It requires that each committee member be on the board and that each member receives no compensation or benefit from the company. Also, each audit committee is required to have a financial expert.
  • The Act governs the responsibilities of auditors. The lead partner of the auditing company is made to rotate off audits every five years. In addition, non-audit services cannot be provided to the company during the audit. The audit firm is also required to report to the auditing committee critical accounting policies and procedures.
  • The Act requires the chief financial and chief executive officers certify the company’s financial statements, attesting that they are appropriate and accurate. Nonprofits are encouraged to have a capable chief financial officer to certify the financial condition of the company. The CEO will ultimately be responsible but most haven’t the knowledge needed to sign off on financial matters.

Some other points of interest for the nonprofit in the Sarbanes-Oxley Act include:

  • Disclosure or transparency to the public.
  • Whistle-blower protection.
  • Insider transactions and conflicts of interest.
  • Document destruction.

Nonprofit transparency is such a crucial part of the nonprofit organization in this day and age due to the ever watchful eye of the wary public. The Sarbanes-Oxley Act can be used as just another guide to help your nonprofit organization reach its goal of nonprofit transparency that will bolster your reputation and ensure trust with donors and your supporters. If you have questions and/or concerns about your organizations nonprofit transparency feel free to contact us.

Dec 31
0

Nonprofit Accounting is Not a Luxury, It’s a Necessity

By | MIP Fund Accounting, Nonprofit | No Comments

iStock_000019130036XSmallIf you’ve ever run a nonprofit, or contributed to one, you know that many of these organizations rely on the contributions of the public. There are countless drives, fundraisers and initiatives created in order to bring more money in to keep the nonprofit afloat, allowing it to continuously provide services to the public. In order to keep tabs of these contributions, Nonprofit Accounting is not only a luxury, it is an absolute necessity.

The nonprofits that are taken seriously are the ones that keep proper books. By taking advantage of sophisticated accounting software, it becomes easier to maintain nonprofit accreditation, give contributors an accurate account of their donation and move forward with initiatives, knowing fully what money you have to work with. You can receive these accounting practices through the use of companies and software that cater to people who run these nonprofits.

Whether you run a community action program or a research organization, provide service to the homeless and the hungry or healthcare clinic, accounting should be at the forefront of your priorities. Leverage technology and sound accounting practices and  you’ll be able to keep track of every dime that comes in and out of your organization, which, in turn, will allow you the opportunity to fulfill your mission and serve your constituents.

In order to maintain the trust to the public, nonprofits must be run with organization and proper bookkeeping, so leaving these tasks to professionals can go a long way in that regard. Anyone interested in these services should take responsibility.