Just because you run a non-profit organization in Nashville doesn’t mean you shouldn’t be trying to earn money. That’s not to say that you should operate like a corporation bent on enhancing your bottom line, but rather that you should manage and grow the resources you receive so that your organization will have more money to do more and accomplish more good works.
Here are a few tips non-profit groups can follow.
Keep excellent records – and analyze them
As in other industries, good money management entails good bookkeeping and accounting.
Recording your organization’s income and expenses to the last digit and letter is one aspect of doing this. Examining the sources of income and recipients of outflow is another.
After all, to grow your resources, you need to build a reliable bank of donors and pursue a list of mission-related projects that bring in some revenue. You can better tell which relationships and projects are worth cultivating if you have your records to fall back on and study.
Keeping detailed files will also help you every time there’s a scheduled audit.
Know your local codes and laws
Tax exemptions are indeed a privilege granted non-profits. It’s one you should take advantage of, given the extra funds it can hand you. But what are the qualifications that make you continuously eligible for these deductions? There might be nuances to the law that you might be missing – and would be better off understanding in detail.
Knowing the tax laws’ ins and outs is the first step to adhering to them. Compliance is necessary for any individual or organization, but it’s worth noting how essential it is to a non-profit. After all, if public trusts lose the public’s trust because of malfeasance, no amount of money management can recoup the lost capital of credibility.
Consult a CPA
A certified public accountant or CPA can help you maintain and analyze records, as well as understand the law and taxation. He or she can also help you review your finances and point out areas for growth.
Of course, your sense of good resource management may prevent you from having a CPA on your team full-time. You may try looking for a professional from a top-flight accounting firm in Nashville willing to assist you on a consultancy basis – or, if your advocacy appeals to them, even pro-bono.
You can also educate yourself through non-profit accounting and management classes. Building strong enough relationships with classmates and teachers can help you consult them when the need arises.
Sources:
7 Helpful Accounting Tips for Nonprofits. SJZTorch.com, August 2, 2016.
Accounting Tips Every Nonprofit Should Know. Capital Business, February 25, 2015.
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