Uniform guidance: time and effort reporting

Many questions have arisen regarding the Uniform Guidance on the reporting of personnel expenses and the need to record hours worked across multiple grants and responsibilities. The Standards for Documentation of Personnel Expenses can be found under section §200.430(i). In reading the uniform guidance, we noted three things: Paragraph (i)(1)(i) states first and foremost that …

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Asset allocation: the basics for investors

The investing landscape has changed dramatically over the years. Rather than calling a stockbroker to place an order, most investors now login to their e-broker to place an order. Instead of investing in expensively managed funds, many investors now choose to invest in passively managed exchange-trade funds (ETFs). A broader range of securities is available …

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Benefits of spending time on the SOFE

When addressing your SOFE (Statement of Functional Expenses) for the upcoming audit, it is important to remember that the SOFE must be broken out into its three functional categories. Those are program services, management and general (M&G) and fundraising. Now, your nonprofit may have a standing template for which you fill out the SOFE and …

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Conflict of interest policy – why you should have one

A written conflict of interest policy should be put into place to ensure that voting board members are not influenced to act in any way other than in the best interests of the organization. Nonprofits can be closely monitored by the public to see if any transactions the organization enters into directly benefit a member …

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Six Sigma, work smarter, not harder

Pop quiz! What is the most important resource to a nonprofit organization? Answer: People! You thought I was going to say the contributions, didn’t you? While that might be what supports the mission of the organization, where would the organization be without the development department raising those contributions, the finance team making sure your tight …

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Blockchain is changing the future of accounting

The Economist magazine said that blockchain technology is the most important advancement in recordkeeping since the invention of double-entry bookkeeping in Florence, Italy in 1494. The modern accounting system is a series of mutual control mechanisms, checks and balances. This affects accountants’ day-to-day operations because most of the systematic duplication of efforts, extensive documentations and …

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FinCen Form 114: Does your organization need to file?

Is your nonprofit involved in activities in foreign countries? This includes operating an orphanage, conferences, mission work or any other type of program activity. If so, your organization may find it necessary to open a bank account in that country. Once you decide to do that, Form 114 may be required for you to file …

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Don’t give employees opportunity to commit fraud

The term “segregation of duties” is used in the prevention of fraud within an organization. It involves separating duties among employees so that no single staff person is put in an advantageous position to exploit their control for self-gain. A large factor in how someone commits fraud and gets away with it is that they …

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Young Nonprofit Professionals Network

The Young Nonprofit Professionals Network (YNPN) is a group solely devoted to helping and training young professionals who want to devote their energy and commitment to the social sector. YNPN looks for those who are purpose-loving changers, mission-driving professionals, big idea pushers and cause crusaders who make nonprofits happen. The network connects nonprofits with young/passionate …

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Understanding automatic enrollment in your 401(k) plan

We’ve all been there: starting a new job. The amount of information and paperwork can be overwhelming. It’s no surprise that reading up on and enrolling in a 401(k) plan isn’t at the top of everyone’s priorities. What may be surprising is that about half of all households age 55 and older have no 401(k) …

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