Misclassifying workers as independent contractors instead of employees can expose your nonprofit to back taxes, penalties, and unwanted IRS scrutiny. Understanding the difference is not just a compliance checkbox. It is a safeguard for your organization’s financial health and long-term stability. Here is what every nonprofit leader needs to know.
While economic pressures and federal funding cuts are grabbing headlines, some of the greatest risks to a nonprofit’s financial health may already be lurking inside the organization. From unexplained budget variances to unchecked executive authority, knowing what to look for, and when to act, can make all the difference.
Nonprofits regularly receive donations of tangible property, from used clothing to equipment and artwork. But assigning an accurate value to these items is more complex than it may seem. Understanding fair market value, the key factors that influence it, and the exceptions that may apply is essential for sound financial reporting and donor compliance.
Determining the right board size is one of the most consequential governance decisions a nonprofit can make. Too few directors and you risk burnout and blind spots; too many and engagement can suffer. This article explores the trade-offs of small vs. large boards and how to find the right fit for your organization.
Data analytics can help nonprofits of all sizes uncover trends, measure program impact, and make smarter decisions. If your organization has assumed this kind of technology is out of reach, think again. The right approach, tools, and guidance can make a data-driven strategy more accessible and affordable than you might expect.
The One Big Beautiful Bill Act introduced new federal tax deductions for tip and overtime income, retroactive to January 1, 2025. Workers in eligible occupations may deduct up to $25,000 in tips and up to $12,500 in overtime income, but documentation, eligibility rules, and phaseout thresholds make navigating these deductions more complex than they appear.
If your business or rental property generates significant losses, you may not be able to deduct the full amount in the current tax year. With new legislation making the excess business loss rule permanent and lowering deduction thresholds starting in 2026, the stakes for proactive tax planning have never been higher.
Leaving the workforce does not mean leaving retirement savings behind. A spousal IRA lets a nonworking spouse keep building retirement security using the working spouse’s income. With a contribution deadline of April 15, 2026, for the 2025 tax year, there may still be time to reduce your tax bill and strengthen your financial future.
Enterprise risk management isn’t just for large organizations. With the right framework, nonprofits of any size can identify, prioritize, and address the risks that threaten their mission. Learn how a practical ERM approach, built around four key steps, can help your organization protect what matters most and make more intentional decisions.
The revised instructions address changes to the treatment of §174A domestic research expenditures and align with prior IRS guidance and clarifications on reporting requirements.