Q&A: Advertising

What is advertising? As defined, advertising is the promotion of an industry, entity, brand name, product or service through the use of media. Its purpose is to create a positive image for the company and to encourage individuals to use the company’s products or services. Advertising, however, is not fundraising. When do I report the …

Keep Reading

Developing Diverse Funding Sources

To acquire a diverse set of funding sources, a nonprofit organization first has to be sure that the community has a positive impression of the organization and mission. Recently, I came across a publication issued by the Horatio Alger Association called, “Ten Traits That Make Nonprofits Great”. After reading through this infographic, I believe that …

Keep Reading

Quickbooks – Tips to Reduce Errors

A significant portion of my career has been spent working with small or medium sized businesses that share two things in common.  They use QuickBooks for their accounting software and their accounting personnel are not trained on how to effectively use QuickBooks.  Without being trained on how to effectively use QuickBooks, the risk that errors …

Keep Reading

Income Statements in Real Estate Appraisals and Business Appraisals

When reading business and real estate appraisals, one should recognize that a business appraiser and real estate appraiser do not rely on the same items of income and expenses when determining market value.  For example, when valuing an LLC that owns a multi-tenant office building, the real estate appraisal only considers income and expenses directly …

Keep Reading

Classifying Expenses – Is it Program or Supporting Services

Not-for-profit organizations are required to report financial information about the functional classifications of expenses, such as major program services and supporting services. There is often confusion surrounding when to classify an expense as program related versus supporting services (which is usually management & general or fundraising).  Program services are activities that result in goods or …

Keep Reading