Nonprofit – Page 6 – Beck & Company

Cloud Computing Features for your Nonprofit

Just like businesses, nonprofit organizations need to keep up with the technology of the time. The potential found in Cloud computing software to transform your financial reporting and make the complications of nonprofit accounting records easier is worth strong consideration. To learn more about the need for this and what being Cloud-based really means, visit here. Beck and Company Certified Public Accountants and Business Advisors know that nonprofits need solutions to help them with the accounting side of operations as well as the important work of fulfilling their mission. With Cloud computing in place, your audit processes will also be more streamlined and simplified. Learn more about our technology consulting services to help you get the help you need to transition to the Cloud. Then, learn more about our financial auditing services that we can conduct to help your nonprofit with its accounting and process needs using the information you have stored in the Cloud. The Cloud provides some key features for nonprofits that are not available with on premise software solutions.

Let’s take a closer look at the key features of Cloud computing that would be useful for nonprofits:

Always accessible- anywhere at any time

Cloud-based applications keep work online in a password-protected database with exclusive and secure access control. It’s easy to log in on any computer or mobile device with a web browser and Internet connection. This could be from the office, at home, at an off-site meeting, or anywhere else you need to be. Total connectivity on the go is a key feature needed in our mobile world!

Data and information stored safely and reliably

Data reliability is closely related to data security. In essence, organizational information stored in the Cloud is available whenever it needs to be referenced. Cloud computing solutions protect data reliability in a number of ways, including redundant servers and automatic backup.

Natural disasters at the office building won’t wipe out your nonprofit altogether if a Cloud solution is being used to store operational information. Information is still intact and secure in the Cloud, running on redundant hardware and backed up for complete continuity. By simply logging on to what is stored on the Cloud, you’ll get back to your important work without losing time or information. When it comes to data security and disaster recovery, Cloud computing solutions offer the robustness needed to handle whatever unexpected events may come your way.

Initial implementation and upfront costs are lower than other solutions

Cloud-based software systems offer a lower start-up cost and can assist in smoothing out processes. Rather than paying for costly license fees up front and annually for continuing software maintenance, Cloud-based applications are different. The best part is that paying for ongoing maintenance and fixes is substantially reduced with Cloud systems that are automatically being maintained and upgraded. This is a significant benefit to nonprofits who are always needing to save money where they can. Typically, Cloud solutions are paid for based on storage space needed or number of users which makes them ideal for nonprofits of all shapes and sizes who are not large corporations that can afford seemingly unlimited systems and features.

System updates automatically

The Cloud is automatically updated by the provider of Cloud computing solutions so the real-time version is always the most current. This eliminates the need to use precious time waiting for software updates to be installed, and the latest features are always ready to use and are readily available.

Enhanced efficiency

Collaboration and productivity are assisted with solutions in the Cloud. This happens because as newer Cloud-based applications become available and are integrated into the system, they are available instantaneously and offer immediate benefits. Remember, with Cloud solutions, what is accessible to you on your software is also available to everyone else using the same system with no lag time in sharing information and collaborating. Your organization’s staff can work together more seamlessly than ever before!

Less maintenance required

With a Cloud-based system, it is time to say goodbye to work interruptions for IT fixes! This means upgrades happen in the background without any disruptions, allowing your nonprofit operations to stay fully functional at all times.

Beck and Company CPAs are here to help with getting your accounting needs as nonprofits up to par through Cloud computing consulting assistance, and by carrying out your audits for you using the data and financial accounting information stored on the Cloud. Contact us to learn more.

Nonprofits, Do You Need Cloud Computing Technology?

It may seem like a distant memory now or could possibly be a very recent reality for you, but no matter when your nonprofit began, the start-up process likely had similar feelings and realities. There was great emotion and excitement of the possibilities and potential impact your organization could make, yet fear and trepidation of the unknowns. Money was tight, and needs (personnel, supplies, etc.) were great. “Extra” was only in your vocabulary to represent all of the needs for more time, resources, space, etc. As your nonprofit grows, some of these extremes have likely been reduced a bit, but it is also so easy to be involved in the day-to-day operations that you forget about the need to keep up and get ahead. If this is your reality, are you potentially overlooking important technology that could propel your nonprofit forward through modern Cloud computing options?

As nonprofits, your organization likely grew organically and only added on technology as it was desperately needed and when it could be afforded. This approach allowed your organization to adequately address immediate needs but nothing more. You may see your nonprofit still lagging behind the time, or may be noticing that the systems you do have are simply unfit and underqualified for the demands of keeping accounting and financial reporting systems updated in our modern world. It’s hard to keep up with the technology industry that changes so quickly and costs so much, but poorly integrated systems may end up being more costly due to lost productivity, poor data accuracy, and unnecessary delays or errors in accounting processes and reporting. Realistically, these factors translate into lost opportunity for your nonprofit. Although many bells and whistles exist that aren’t necessary, there are some that are necessary. If there is one solution you’ll need to keep up, it is Cloud computing. The growing trend of transferring financial reporting to Cloud computing venues eliminates many issues but also provides for many opportunities.

Do you want to create an advantage by adopting Cloud-based technology and achieve more work efficiency at the same time? Over the past few years, Cloud computing has emerged as a powerful tool to do just that. It offers sophisticated automation, freedom from hardware-based solutions, a substantial decrease in the need for lots of costly Information Technology assistance and support, and secure and instant access to information anywhere at any time. Beck and Company Certified Public Accountants and Business Advisors believe these factors can take your organization to a whole new level of success because they allow you to have your reporting needs met with only the level of robustness you need based on the size of your organization. Ultimately, this technology will help you have your finances in order and more readily accessible. At Beck and Company CPAs, we can help you use this more accurate and real-time data to make nonprofit financial audits easy. Learn more about our auditing services. We also offer technology consulting services to help you get what you need in a Cloud form. Find out more here. Now, let’s take a closer look at what Cloud-based technology is all about.

What is Cloud-based technology?

Cloud-based technology is often referred to as Software as a Service (SaaS). With a SaaS solution, staff can begin working immediately with the new software from any device with an Internet connection. Cloud-based solutions bundle all that you need– hardware, network, storage, services and software—into one system that is accessed anywhere, anytime via a web browser. Cloud computing applications support many of the things you already use online for your nonprofit including:

• Email

• Banking

• Applications

• Social media sites including Facebook or LinkedIn

Contact Beck and Company CPAs to find out more about why your nonprofit would benefit from the Cloud and how you can get a Cloud accounting solution to keep your financial records in order and make the nonprofit financial audits we would be pleased to conduct for you less complicated.

Managing Talent can Make or Break your Nonprofit

So many internal, external, and societal factors influence the success and failure of nonprofit organizations. It can be complicated to figure it all out and truly determine what will aid in the success of your organization and what can also hinder or harm it. Over the past month, we have taken a close look at four indicators that positively influence success when managed and carried out well. These “4 Ts” of organizational success are transformation, technology, transparency, and talent. Transformation is focused on making changes and staying active in improving the organization. Technology assists in transformation through implementing updated systems that help in keeping pace with modern, business world trends and needed processes. Transparency helps organizations to collaborate better, increase trust amongst stakeholders, improve engagement and service offerings, and enhance efficiency. To learn more about transparency, visit here. For our final post in this series, let’s get a deeper glimpse into how talent and its management is yet another performance indicator vital to nonprofit success.

As Beck and Company’s Certified Public Accountants and Business Advisors, we understand that being successful in transformational practices, technological advancement, transparent practices, and talent management in addition to all the other tasks that need attention as an organization can present challenges to time and money. We are here to help with the financial pieces of these undertakings so you can focus on your areas of expertise in furthering your organization’s mission and success. Learn more about our accounting, controllership, and CFO services for nonprofits here. We can assist you with these important aspects of success so you can focus on the four performance indicators that need your attention and other important tasks.

Why is talent management a top consideration for success?

The reality is that initiatives in transformation, technology, and transparency will all fail without the help of the people that make them possible. Skilled workforces must be developed and maintained. Without the right people in the right positions, achieving success is nearly impossible. Managing talent has the power to make or break an organization. This revolves around the importance of recruiting the best employees, developing them and the talents they bring to the organization (in addition to utilizing those talents well), and retaining them over the long term. An organization must have a good hold on what their current skill shortages are, must be actively seeking this out, and must be constantly in tune to potential skill needs.

What factors should be involved?

When managing talent, it is necessary to explore a variety of factors involved in the process. These include incentives, rewards, and compensation structures. This is complicated by the fact that budgets are always limited. These budget constraints are reality, but they cannot be the sole indicators of decisions related to talent acquisition. As an organization, you must believe in the power of people and that they offer the biggest benefit of all to the organization and do what is necessary to find the needed talent and skills to succeed in the digital age, reward their successes, and retain them over the long term.

The process of talent acquisition starts by taking a look at critical capability gaps that exist in your organization. It also necessitates taking a good look at existing skills within the organization and how to best use those. What should you look for in acquiring leaders and skilled laborers for your organization, both current employees and future additions to the team?

Team building, coaching, and mentoring skills
Foresight and adaptability skills
Operational knowledge of the organization as a whole

Remember that having technical skills alone is not sufficient. Talent must reach beyond skills to attitudes, overall organizational buy in, leadership and people skills, ethics, integrity, and professionalism. Develop internal talent, train staff well, use talent wisely, and create a culture and environment that is positive and has incentives in order to be successful in using and finding the best talent for your organization’s sake.

Contact Beck and Company CPAs to learn more about the performance indicators discussed this month and to find out how we can help in your overall nonprofit success.

Transparency’s Potential for Positive Impact on your Nonprofit

When you think of all of the factors that influence your nonprofit’s success, does transparency come to mind? This may be a more subtle performance indicator than the others we have looked at over the last two weeks, but it is so important. The third “T” in our series about the “Four Ts” or four performance indicators that deserve a closer look as a nonprofit is transparency. Transparency is just one of the four indicators that has the potential to increase and produce greater success while positively impacting nonprofits. To learn more about the other “Ts” we have discussed, visit here to learn about technology and to take a closer look at how it impacts another indicator, transformation.

Is your organization accountable to its stakeholders and providing them with insight into how money is being spent, how decisions are being made, etc.? Does your organization allow its stakeholders and constituents to make informed decisions about the services provided and their quality? Many organizations fail to even view transparency as something that will better decision making. The reality is that this can be achieved if care is taken to present information in relevant and engaging ways instead of by simply replicating internal paperwork.

Beck and Company’s Certified Public Accountants and Business Advisors understand that having the relevant data and accurate information needed to be transparent can be tricky and difficult, especially in small organizations who may not have expertise in accounting and financial practices and are best skilled to focus on the important mission-related work of the nonprofit. Our expertise is in the financial area, and we can help you with your accounting and financial practices through our nonprofit services designed to meet the financial accounting needs of organizations. We also offer audit services to help you with yet another financial aspect of your organization that is essential to its health and transparency—nonprofit audits. Let’s take a closer look at what transparency is all about and how it is beneficial.

What is transparency, and why is it important to nonprofit success?

Transparency is so much more than sharing the latest budget or minutes from meetings. It involves identifying the right sets of data, identifying the appropriate financial and non-financial key performance indicators (KPIs), and acting upon that information to demonstrate how effective a nonprofit organization is at meeting the needs of those it serves. Metrics and measurements must also be clearly communicated to achieve transparency, and this information must be consistent and timely.

The beauty of transparency is the opportunity it creates for true openness. It has many benefits including helping in fostering a culture of collaboration and sharing within an organization and to its stakeholders. At the same time, transparency can increase trust and engagement through true accountability.

Here are five essential benefits of being transparent:

1. Increased engagement- conversations, decision making improvements, dialogue, etc.

2. Enhanced internal collaboration and true openness as a nonprofit staff

3. Improved trust in the organization on the part of its stakeholders

4. Enriched quality of delivered services

5. Heightened operational efficiency within the organization

Beck and Company CPAs can help you in the process of continually increasing transparency, particularly financial transparency, through a myriad of service offerings including accounting services, nonprofit services, audit services, and technology consultation services. Please contact us to let us know what your needs are and to find out how we can assist you in meeting those needs. Stay tuned for the conclusion of our series on indicators that can determine organizational success next week as we look at the last of the four “Ts” that can be strong indicators of nonprofit success—talent.

Leveraging Technological Opportunity as a Nonprofit

There is an ongoing struggle in our world to prioritize. So many factors demand our attention and focus that it can be overwhelming and challenging to know where to put our focus, what can wait, and what is worth consideration or not. This is true just as much in our work lives as in our personal lives, and nonprofits are not exempt from this either.

With a continuous stream of challenges facing nonprofits, your organization must address, face, and find solutions to such challenges that include, but are not limited to, financial, environmental, and demographic constraints. Maximizing potential with financial constraints considering all of the factors involved can be daunting. Getting the desired performance out of your nonprofit is not easy, but it is possible. One such performance indicator that we looked at last week is transformation. Being open to change, embracing and allowing it, and carefully using finances to help is important to nonprofit success. Let’s take a look at the second performance indicator, technology, this week that is a huge part of assisting in an organization’s transformation.

Beck and Company’s Certified Public Accountants and Business Advisors know that managing all aspects of a nonprofit is a huge task. Because it is impossible to be an expert in all realms at once, we are here to help with the financial and accounting piece in addition to the technological piece of your organization that might merit outside help. We are passionate about helping nonprofit organizations to be successful and would be happy to assist in the areas of our expertise so you can focus on your areas of expertise. Learn more about our nonprofit financial service offerings here. In addition, learn more about the technology consulting service offerings we provide that will help with keeping your financial and business processes in order.

Opportunity Awaits: Leveraging Technology to Enhance your Nonprofit Organization’s Success

There is no denying that technology in today’s world is a necessity. Keeping up with technology translates into keeping up as an organization overall. Technology is critical, but nonprofits often fail to leverage the opportunities it provides. Often times even the true need for technology can be overlooked by nonprofits or justified as not necessary due to financial constraints or lack of buy in from stakeholders. Unfortunately, this may seem okay for organizations to limit their technology use or not stay up-to-date, but this will ultimately be costly.

Part of the transformation and constant development your organization needs is an ongoing process of enhancing technological processes that can automate processes, help with managing data, and create more efficiency at your nonprofit. Making the right investment choices in technology that will support your organization’s efforts and enable further transformation is key in this area. From a financial perspective, this involves gathering and providing the right information that will be used by nonprofit stakeholders to support investment decisions and calculate cost and value benefits. This includes acting on the information and research of technology options and using this data to make decisions with regards to technological advancements that will truly benefit the organization. Then, successful and methodical implementation of the decided upon technologies is important.

What forms of technology are especially worth consideration in our current, modern age?

Social technology
Mobile technology
Analytics technology
Accounting and financial system technology
Cloud technology

Knowing which technology options to invest in that will result in the best return on investment and knowing how to execute a strategy to roll out new systems can be challenging. It is important to prioritize what is needed and what will be most beneficial, understand costs and outcomes, and communicate clearly to stakeholders as to what decisions are being made and how users will be assisted in the implementation process.

Contact us to learn more about our technology consultation services to help you in the process of finding and implementing the best technology solutions that will further transform and assist your nonprofit organization in its success. Be sure to read next week’s blog as we look at yet another key performance indicator for your organization—transparency.

Embracing the Need for Ongoing Transformation as a Nonprofit

Nonprofit organizations are encountering new complications and intricacies all the time, and monitoring performance, success, and failure is more important than ever to ensure that your organization has what it takes to not just survive but thrive. Being successful and thriving as an organization requires planning, executing those plans in a methodical way, monitoring activities, and analyzing the results of those carefully thought out plans. The overall performance of your nonprofit is essential to its current and future success.

In addition to this performance piece, strong financial practices are also needed. Beck and Company’s Certified Public Accountants and Business Advisors know that doing all of this is no easy task. That is why we are here to help your organization with the financial end of being a nonprofit so you can focus on carrying out plans and acting on your organization’s mission. Contact our CPAs today to get the nonprofit accounting and controllership services you need to further your mission from a financial perspective. By allowing us to take care of some of the financial pieces, you can focus on your organization’s ongoing performance. In focusing on performance, we will take a closer look at performance indicators over the course of this month and will discuss what they mean for your organization. The “4 Ts” are four performance indicators that deserve strong consideration and ongoing analysis, not to mention action, too. The first of those four indicators is transformation.

Transformation: Adapting and Changing as a Nonprofit is Essential

It is hard to deny that businesses and organizations alike are always in the process of change. But, do you view the ongoing transformation of your organization as something that adds value to it? Or worse, do you not allow your organization to transform while forcing it to stay as it has always been? Do you see that there are benefits to transformation including financial benefits? There is value to transformation, and transformation is all about effectively managing changes made to the organization or services delivered by it.

Transformation must be viewed as an ongoing activity rather than a single event. An effective performance management system will aid in this process, bringing a clear, consistent, and constant focus on organizational strategy, planning, execution, and review. Being onboard with allowing your organization to transform with the times and helping it along in this process are not easy, and it can be challenging to see the financial benefits—at least initially.

Here are five challenges your organization will likely face in the process of transformation. Recognizing these but not letting them stop your organization from making changes is key.

Challenges associated with organizational transformation:

1. Getting people to adapt to changes

2. Securing the necessary budget to support transformation and make the needed changes

3. Determining the cost benefit of making the changes

4. Finding the right skills and people to help in the transformation

5. Making the decisions in knowing where, exactly, to put the focus in the process of transformation

Transformation requires supporting significant change in approach to your organization’s operations, technology, processes, and service delivery wherever and however it may be needed in order to improve efficiency and deliver better outcomes. Beck and Company CPAs can help you help your organization in this process by sorting through and identifying the right financial information you will need to provide to stakeholders within the organization. This financial data will support decisions around the delivery of services and will provide all involved with the best access to the relevant financial information needed to make the needed changes.

Being open to transformation and being well prepared for it with the financial data you need are great places to start in truly responding to needs and making ongoing changes as an organization. Please contact us to learn more about how we can assist you in this process of continual improvement through organizational transformation. Stay tuned next week as we take a look at another performance indicator worth consideration—technology—that is closely tied to transformation.

Nonprofit Financial Audit: Successfully Communicating with your Auditor

Like it or not, your organization will be audited from time to time. This can be an intimidating process, but it doesn’t have to be so bad depending on who you choose and how you communicate with your auditor. Beck and Company’s Certified Public Accountants and Business Advisors are trained to help with nonprofit audits and would be happy to assist you with yours as auditors. Learn more about our audit services here.

As auditors, we know firsthand what makes audits run smoothly for both the nonprofit and the auditor. Let’s take a look at some tips for communicating effectively with your auditor so you know what is needed and expected. In addition, let’s dig deeper into what an auditor will be asking for from you as an organization.

How should you communicate with the auditor during the audit?

Because of the pressure brought on by audits and their results, auditors understand that you may be feeling overwhelmed and nervous. The auditor wants the best for your organization just like you do, but this person can only help if you are open and candid with them. You may be asked about questionable accounting practices or pressures, fraud risk factors, and known deficiencies in accounting systems. Your honesty and genuineness can help the auditor gain a better understanding of what is truly going on with the hopes that they can help you get things resolved. Therefore, you’ll need to be real so everyone can get to the real heart of the matter and work to find solutions. Be open with the auditor about difficult areas you’ve encountered, concerns, questions, and recommendations you may have.

The auditor needs as much information as possible, and the audit process is made easier if this information is shared directly instead of an auditor needing to infer this information from documents. Alert the auditor to any outside consultants, regulatory agency inquiries or future plans, and provide related reports and correspondence. The auditor may ask you to explain significant actual-to-budget and prior-year variances. Be prepared to discuss the results of the year based on your expectations going into the year.

Don’t be afraid to ask the auditor questions. In fact, asking questions is encouraged because it helps you to truly understand the process and be better prepared for future audits. Ask why a particular schedule is requested if you don’t know. You may have a better source for that information, it may already exist in an alternative format, or you may learn a better way to organize your routine tasks as a result.

What information will an auditor ask for that you’ll need to supply?

Ultimately, auditors express an opinion on the broad financial statements. Because of this, most of the detailed schedules they request are merely items your company should have as part of its normal accounting procedures.

The auditor systematically obtains and evaluates evidence about the basic financial statement assertions contained in your numbers including:

Existence or occurrence
Completeness
Rights
Obligations
Valuation
Allocation
Presentation
Disclosure

In addition, you may be asked about any changes in the following and will need evidence. These changes include:

Governance, management, and ownership information
Operations
Technology
Personnel relations
Economic/industry developments and their impact

In summary, your nonprofit financial audit will involve interactions with an auditor. To be successful in communicating with the auditor, you’ll need to be honest and open. You will also need to disclose as much information and as many explanations as possible to what they ask you about. Don’t be afraid to also ask questions of them to truly understand the process. In addition, be ready to supply a variety of financial statements and to address any changes that have occurred since the last audit. These tips for communication and what to supply your auditor will make the audit process more successful and smooth. To find the right auditor for your organization and to use the many audit services Beck and Company CPAs provide, contact us.

Form 990: What Nonprofit Key Constituents Need to Know

As a key constituent at your nonprofit, protecting yourself and your organization is no easy task, and inaccurate tax preparation and filings on forms such as the Form 990 are one way that your organization can easily be in trouble. The good news is that you don’t have to figure it all out alone. Beck and Company’s Certified Public Accountants and Business Advisors are trained in these areas and are here to help. Our tax services are designed to help you file all of your nonprofit-related forms with peace of mind.

Last week, we took a look at how Form 990s are often misunderstood or not sufficiently understood, what risks these misunderstandings could create, the importance of seeking professional help in filing Form 990s, and what Form 990s include. To learn more about the Form 990 and what you need to know on general terms, visit here.

By now, it should be clear that protecting yourself and others from penalties is important, but how do you ensure that this happens (in addition to the help you receive from a professional CPA)? How do you actually know what must be filed on Form 990 returns? The following information will help you to be informed when it comes to filing Form 990s and all of their nuances. The questions below are meant to assist you with any future tax compliance filings and the process of informing and education boards and management teams alike. All key constituents (officers, directors, trustees, key employees, management, presidents, board members, etc.) should be sufficiently informed to be able to answer these questions.

Do all members of the governing body of your organization have a complete copy of the Form 990 that is supplied prior to filing?
Did your organization become aware of or engage in any excess benefit transactions in the past tax year?
Did your organization have any receivables from or payables to key constituents recorded on its financial statements?
Was any grant or assistance given to any of these key constituents or their families by the organization?
Was your organization a party to a business transaction with any of these current or past key constituents, employees, or their family members?
Do any donor-advised funds, where the right to advice on distribution or use of funds/accounts was granted, exist?
Did your organization hold assets in endowments of any kind?
Has your organization had any international financial accounts?
Did any key constituent have a relationship (familial or business) with any other key constituent?
Have substantial and significant changes been made during the tax year to governing documents?
Is a written conflict of interest policy in place that requires annual interest disclosure that could give rise to conflicts? If so, was this monitored and enforced regularly and with compliance?
Does your organization have written policies for: whistleblowing, document retention, and document destruction?
Does compensation determination follow a review and approval procedure with sufficient data and deliberation before a decision is reached? (A review of Form 990, Part VII is highly recommended.)
Does your organization have an audit, review, and compilation committee responsible for oversight of financial statements and independent accountant selection?
Is a gift acceptance policy used for non-standard contributions?

If key constituents can answer these questions, they will be on the right track to completing the Form 990 or reviewing it with sufficient information to avoid penalties and give accurate reporting information. With some education, information, and review, you can save your organization from lots of headaches and potential disaster in the eyes of the public, press, and IRS. Don’t leave your key constituents uninformed.

Beck and Company CPAs would like to assist any key constituent with filing the Form 990. Contact us to get the nonprofit tax assistance you need to be successful at tax time.

Form 990: An Overview for Nonprofits

With tax time looming, tax forms and reporting are likely on your mind to some extent by now and will become even more prevalent in the next few weeks and months. Tax reporting issues can be costly in many ways, both financially and to the future health or even existence of tax-exempt and nonprofit organizations. Over the years, Beck and Company’s Certified Public Accountants and Business Advisors have seen that many nonprofits and their boards are not as aware as they should be of what data and information is expected to be reported and needs to be reported on Form 990 returns. Without proper understanding of this information, there is also a risk of not being aware of the penalties that are possible to incur if these Form 990 forms are filed late, are inaccurate, or are left incomplete.

As a member of the board of directors, a trustee, or a staff member of a nonprofit, it is your duty and responsibility to review the Form 990 sufficiently to help protect both yourself and your organization from penalties. Although not an IRS requirement, it is certainly a best practice and strongly encouraged that boards review Form 990 information. By submitting proper information in a timely manner, you offer three forms of protection. You protect your organization from losing its exempt status. You also protect the organization from incurring potential financial penalties. Finally, you protect board members from the possibility of owing money personally from personal penalties.

Beck and Company’s Certified Public Accountants and Business Advisors understand that these forms are confusing, complicated, and overwhelming. Not only that, but it is difficult for those of you working at nonprofit organizations, who should be focused on the important work and mission of the organization, to truly understand them and what is expected on them. The intricacies necessitate trained professionals who are well versed in the forms and understand the legalities and complexities well. As you can see, inaccuracies can be costly to your organization’s future, but you don’t have to worry about those if you solicit the help of a professional tax advisor. Learn more about Beck and Company CPA’s tax services and the ways we can help you so your tax preparation and filing are done correctly.

Now that you understand that Form 990s and other tax forms are often misunderstood or not understood by boards and nonprofit staff members, that there are risks to inaccurately filing Form 990s but also ways to protect yourself, and that a professional tax advisor or Certified Public Accountant (CPA) is likely a necessity in helping taxes get filed properly, let’s take a quick look at a general overview of Form 990 including what it is, when it needs to be filed, and what is included on the form.

What is the Form 990?

The IRS Form 990, officially referred to as the “Return of Organization Exempt from Income Tax,” is the tax document that tax-exempt, nonprofit organizations file each year with the IRS. The Form 990 allows the IRS and the public to evaluate nonprofits and how they operate.

The Form 990 requires disclosure of potential conflicts of interest, compensation of board members and staff, and other details having to do with financial accountability and avoidance of fraud.

When do you file the Form 990?

Your filing depends on your fiscal year end date. You are required to file by the 15^th day of the 5^th month after your fiscal year period ends.

What information is required on the Form 990?

Besides general contact information, the form includes a Statement of Program Service Accomplishments, a Checklist of Required Schedules, Statements regarding other IRS Filings and Tax Compliance, Governance, Management, and Disclosure information, Compensation figures, a Statement of Revenue, a Statement of Functional Expenses, a Balance sheet, Reconciliation of Net Assets, Financial Statements and Reporting.

Next week, we will take a closer look at what key constituents truly need to understand and know about Form 990 information that is filed so they can differentiate that from what they can leave to the professionals. Beck and Company CPAs would like to assist you and your organization in filling out the Form 990. Contact our CPAs today to get the nonprofit tax assistance you need.

Nonprofit Fundraising: Do you have a Sufficient Online Presence?

Fundraising. What emotions do you feel when you hear that word? As a nonprofit, does your organization dread and detest fundraising yet see its importance or is it something that you enjoy and feel successful at? For most people, they would say there is more hatred than love for fundraising so they, therefore, view it as a “necessary evil.”

Fundraising for nonprofits can be an essential part of helping acquire the funds needed to fulfill the organization’s mission. With the proper structures in place that are responsive to what donors are desirous to see, there is success to be had in terms of fundraising. Last month, we took a look at how to fundraise in a modern and connected world. In summary, current fundraising is all about focusing on individual giving through web-based tools and online efforts. This month, let’s take it a step further and look at what, exactly, should be included in your online fundraising attempts and some metrics that support the benefits of these efforts.

First, though, it is worth the reminder that all nonprofit fundraising efforts need to be properly recorded and tracked just like any other financial transaction. Although we will leave the fundraising expertise up to you, Beck and Company’s Certified Public Accountants and Business Advisors can assist you with your back-office accounting and financial needs so you can focus on your mission. We provide professional advice to help you with financial statements and bookkeeping to make sure your finances are in order. Learn more about our nonprofit services. Now, let’s take a deeper look at what makes nonprofit fundraising successful in our current reality.

What leads to success in fundraising in our current reality?

These days, everything is about the internet. Two of the most powerful ways to fundraise are through online videos and blogs. These venues give you a chance to reach a broad audience with small and meaningful messages that have a personal flare. These short pieces create “ah ha” moments for viewers as to what your cause is and how it is really making a difference. This, in turn, leads them to want to contribute to see these things continue.

Diversifying your efforts to get the word out is essential. Multi-channel fundraising is more effective because with a larger number of communication channels being used, fundraising effectiveness improves. This means that the SAME message is sent out all over the place (website, e-newsletter, videos, advertisements, mailers, etc.). These small snippets add up to a complete picture for people in understanding the mission and need to contribute. Simply put, reinforcement is important.

In summary, successful fundraising today involves needing:

Blog posts with relevant and impactful content
Video clips available online reinforcing this same relevant and impactful content
Multiple channels to communicate the same message to a variety of people in a variety of formats

What metrics support the need for an online presence?

Here are just some examples of the results:

Fundraisers who release blog content reported they were 34% more likely to have increased fundraising revenue last year.
Fundraisers who release video content reported they were 47% more likely to have increased fundraising revenue last year.
Nonprofits who accept online donations were 24% more likely to have increased fundraising revenue last year and 61% more likely to describe their fundraising efforts as “effective.”
One organization that went from a single channel of communication to multiple channels all saying the same message increased their fundraising by 40% in just one season.

For more information about nonprofit fundraising and how to properly record and report what is raised, contact us here at Beck and Company CPAs. We are here to help your organization with its accounting and business system needs.