The initial spark that ignited your passion for your nonprofit – the unwavering dedication to a cause, the desire to make a real difference – remains vibrant. However, navigating the intricacies of tax-exempt status can sometimes feel like entering unfamiliar territory, when trying to keep up with updated regulations to keep your organization qualified for its tax-exempt status. Let’s shed some light on the path towards tax-exempt status and what you need to do to maintain it once you get there.

You're on a mission to make the world a better place, one good deed at a time. Whether you're helping the unhoused, promoting the arts, or anything in between, your work is vital. Still, as a non-profit, ensuring you stay on top of financial responsibilities is critical. Here’s what you need to know about empowering your non-profit charity to unlock the benefits of 501(c)(3) status, ensure tax exemptions, and maintain the trust of your supporters - and how to determine the classification of a non-profit organization.

When the IRS instituted annual reporting requirements for non-profit organizations, you might have thought they were bringing the famous Oscar Wilde quote ("No good deed goes unpunished") to fruition. While the need to track the progress of 501(c) organizations may cause some headaches, it can be a timely opportunity to effectively review the goals of the mission and ensure that good governance practices are in place. Here’s everything non-profit managers need to know to prepare for tax season.

In my work with nonprofits I see that any organization without a substantial base of operating cash can experience cash flow problems. What causes them? There are many factors unique to the nonprofit business model, such as seasonal fundraising, annual grant payments, and reimbursement-based contracts. I advise nonprofit leaders to focus on the organization's cash flow. 

Any nonprofit that lacks a substantial base of operating cash can experience cash flow problems. What causes them? There are many factors unique to the nonprofit business model, such as seasonal fundraising, annual grant payments, and reimbursement-based contracts. Nonprofit leaders need knowledge of how the organization's cash flows, and what to do if it doesn't.

Is it necessary for nonprofit organizations to examine their policies every year? Changes that impact the organization, both internal and external, recommend an annual policy review.  Here are three types of changes that nonprofit boards should monitor.

•  It has registered as an exempt nonprofit organization with the IRS, and
• It has no business income from activities unrelated to its exempt purpose.