The Problem With Donor Advised Funds

The Problem With Donor Advised Funds

With the growing popularity of donor-advised funds (DAFs), nonprofits have been keeping a close eye on new regulatory proposals that could result in increased oversight and scrutiny of DAFs. Recently, a new proposal from the Initiative to Accelerate Charitable Giving is gaining traction in the philanthropic community and may signal that major changes in regulation and oversight of charities may be in the works. 

It's Not Too Late to Claim 2020 Tax Credits

It’s Not Too Late to Claim 2020 State Tax Credits

State charitable tax credits are a win for everyone; qualified charities receive the support they need at no extra expense to the taxpayer beyond what they would already owe to the state in taxes. Note that while credits are non-refundable (i.e. if you don’t end up owing enough in taxes to fully benefit from the credits, you will not get a refund from the state), unused credits can be carried forward for 5 years.

Charity Scams

Charity Scams (and How to Avoid Them)

Thoroughly research a charity before giving. What are they doing to serve the community, and do they actually do what they say they will do? How much of their costs go to overhead and administration versus providing actual services to the community they serve? The following organizations provide reputable information on how charities do business and spend their donations.

Boost Your Nonprofit’s Year End Giving

Boost Your Nonprofit’s Year End Giving

As the pandemic continues to dominate the daily dialogue, giving trends have kept apace with the rise in awareness surrounding public health issues. Likewise, racial justice and politics have taken their share of the stage and giving to both causes has increased from previous years. But can we expect giving to be reduced in other sectors as a result? Not necessarily, say survey respondents. Still, it’s helpful to examine your nonprofit’s mission vis-a-vis pandemic relief and other salient issues; strive to ensure that your messaging effectively ties in your mission to those issues that are top of mind for donors.

Electronic Meetings

What You Need to Know About Managing Employees Remotely

Employees (and employers) may have a very different understanding of what “working from home” entails. That’s why it’s essential to set clear expectations concerning the job and telecommuting practices. A telecommuting policy can help to ensure that everyone is on the same page. It might include topics such as; hours of availability and documentation, expected response times, dress, behavior, and work setting requirements; and data privacy and security expectations.

Negotiating and Drafting Nonprofit Contracts

Negotiating and Drafting Contracts

A well drafted contract accurately represents what both parties expect from the agreement. Your nonprofit organization could end up in court or out of pocket large sums of money if you don’t get it right. It is, therefore, important to have the contract represent all parties’ expectations.

Nonprofit Data Privacy

Data Privacy and Nonprofits

Blackbaud is familiar to many nonprofits and universities as one of the world’s leading cloud software companies for fundraising, relationship, and financial management. Now they are in the limelight after a highly publicized ransomware attack in which perpetrators obtained a copy of a subset of data from its Raiser’s Edge and NetCommunity products that track clients’ donors and fundraising activities. Although Blackbaud maintains that no personal information (such as credit card numbers, banking information, or social security numbers) was compromised in the attack, Blackbaud users impacted by the breach have since filed a class-action lawsuit for negligence, breach of contract, and other allegations.

Managing Nonprofit Volunteers

The Tainted Donor Dilemma

The tainted donor dilemma is nothing new; nonprofits have long wrestled with the ethical and reputational implications of receiving questionable characters’ gifts.  But with the explosion of real-time mass communication and social media, stories of wrongdoing are quickly amplified and can quickly sink a person–and everything and everyone with whom they are associated.

Nonprofit Affiliates

Nonprofit Affiliates: Common Issues and Best Practices

To reap the tax-advantaged and protective benefits of conducting business through multiple entities, organizations must take care to respect the formalities of the arrangement. This includes remaining independent and dealing with each other at arm’s length, having separate board meetings, implementing conflict of interest policies, documenting transactions between the entities, and ensuring fair market value payment for any benefits received by affiliates.

Nonprofit Collaboration

When the Going Gets Tough – Collaborate

We all know that 2020 has been a brutal year for nonprofits. Unfortunately, we are starting to see more nonprofits struggle with sustainability. We have helped many organizations wind-down their operations over the years, and in most cases, there have been one or more core programs that could be salvaged. In many cases, a joint partner allowed the charity to continue its most viable programs in one form or another.

Fundraising in the New Normal

Fundraising in the New Normal

If your annual gala, donor breakfast, or poker night benefit is responsible for more than 30% of your annual operating costs, it may be time to overhaul your organization’s fundraising plan. COVID-19 has taught us many lessons, one of which is that the unexpected can and does happen. Limitations on in-person gatherings have shuttered many key fundraising events heavily relied on by nonprofits. In the aftermath, some are now struggling to keep their doors open.

Electronic Meetings

How to Ensure the Legality of Virtual Board Meetings

Today, many charities are unable or unwilling to hold board meetings or membership meetings in person due to the pandemic and social distancing requirements and are considering, perhaps for the first time, holding their meetings electronically. In between the complexity of mastering Zoom and figuring out the most flattering lighting, many may not realize that their organization’s articles or bylaws do not permit virtual meetings. 

Accessing Restricted Endowment Funds

What You Need to Know About Endowment Restrictions

How you can use a gift is generally controlled by donor restrictions written into a “gift instrument”; the instrument can be as simple as an email or a memo line in a check.  If there is no restricting language in the gift instrument, the terms of the solicitation (i.e. whatever the charity advertises as the purpose of their solicitation) will govern what you can or cannot do. As to the length of the restriction, any donor restrictions that use the word “endowment” are considered to create a fund of permanent duration unless other language in the gift instrument limits the duration of the fund.

Nonprofit Continuity Planning

Does Your Nonprofit Need a Business Continuity Plan?

The “unexpected” has increasingly become….well, expected. And failure to adequately plan for anticipated risks can subject directors to scrutiny for breaching their fiduciary duties. Having a business continuity plan is increasingly important; not only for ensuring the continued operation of essential services but also to shield directors from liability for failing to plan for such disruptions. Here’s what you need to know:

Online fundraising

Four Keys to a Successful Online Giving Campaign

The popularity of online fundraising was already on the rise before COVID; Blackbaud reports that online fundraising has grown 17% in the U.S. since 2016. Now COVID lockdowns have shattered fundraising expectations for nonprofits who rely heavily on special events, admissions, and fees for service to fill out their budgets. As a result, nonprofits are being challenged to quickly and effectively pivot fundraising efforts to the online space. Here are some of our best tips for success. 

Nonprofit Contracts

What Every Nonprofit Needs to Know About Contracts

Quite simply, a contract is an agreement between two parties that can be enforced by a court.  It involves an offer by one party to provide something of value to another party, followed by the other party’s acceptance of the offer and exchanging money or something else of value in consideration for the services or goods that are to be provided.