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Nonprofit Accounting Basics
To avoid or diminish financial and accounting risks that might threaten the organization’s existence or decrease its effectiveness, the board needs to be aware of proper financial processes and pra
There is no federal law that prohibits nonprofits from compensating their board members but some states may forbid compensation for board service.
Bylaws form a legally binding document that outlines the organizational authority levels, how the board functions, and how it is structured.
One of the most constructive and proactive ways a board can send a message that its organization is committed to accountability, responsiveness, and stewardship is to draft a code of ethics to guid
One of the legal obligations for board members is a duty of loyalty. One aspect of this duty expects board members to keep confidential issues confidential.
A conflict of interest arises when a board or a staff member is in a situation where his decision making may be impaired by personal, financial, or other busin
An endowment refers to a fund or funds that are generally kept permanently. Their interest income provides for the overall operations of the organization.
A gift acceptance policy allows the board to define the parameters and guidelines for eliminating controversial or risky donations. Unwelcome donations might include gifts that:
As you work with confidential financial data and personal information performing your daily business tasks, follow these straightforward guidelines to help maintain information security and be a mo
Investment policies refer to policies the board has defined and/or approved guiding how the various organizational funds should be invested.
If your organization does not rely fully on earned income or government grants or contracts, it most likely is involved in raising funds from individuals, foundations, and/or for-profit corporation
Every nonprofit needs operational guidelines for staff and the board. The purpose of the policies is to serve as a guide for actions and behavior and as a reference for ethical decision making.
Operational reserves are funds an organization accumulates over the years by operating with a surplus.