Managing restricted funds can feel like a lot, but it’s so important to make sure every dollar has the impact your donors intended. Here’s how to simplify it and keep things stress-free: Know the Types of Restricted Funds 1️⃣ Temporarily Restricted Funds - These are tied to a specific purpose or timeframe. - Once the goal is achieved (like finishing a project), they can be reclassified as unrestricted, giving you more freedom in your budget. 2️⃣ Permanently Restricted Funds - Often used in endowments. - The principal stays untouched, but the income generated can be used to support your mission over the long term. Simple Action Steps ✅ Get the Right Tools - Keep restricted funds organized by tracking them separately in your accounting software. Tools like QuickBooks Nonprofit make this easy. ✅ Review and Reclassify Regularly - Check on temporarily restricted funds often. Once the donor conditions are met, reclassify them so you can use those funds to meet your current needs. Quick Tip Set up a monthly check-in to stay on top of your restricted funds. It’s a great way to show donors their contributions are being used exactly as promised. 🔑 Properly handling restricted funds isn’t just about compliance—it’s about building trust and showing donors you’re serious about making their contributions count. 💬 What’s your go-to strategy for managing restricted funds? Let’s hear it below!

Are your numbers telling the whole story? If you’ve ever felt like you’re crunching numbers but still missing the big picture, you’re not alone. These 5 key metrics can bring clarity to your financial health: - Days of Cash on Hand: How long can you sustain operations with current cash? Track inflows and outflows to avoid surprises. - Unrestricted Revenue Percentage: Unrestricted funds = flexibility. Aim to grow this percentage for freedom to spend where it counts most. - Operating Reserve: Your rainy-day fund for emergencies. Monitor it closely for peace of mind. - Revenue Diversification: Too much reliance on one source? This metric reveals balance—or risk. - Current Ratio: The ultimate test of short-term stability. Can you cover near-term bills with near-term cash? Quick Tips for Accuracy: - Use dedicated accounting software (e.g., QuickBooks Nonprofit). - Reconcile accounts monthly for precise tracking. - Generate regular, timely financial reports to spot trends early. By keeping these KPIs in focus, you’ll steer your organization toward resilience and success.

In the world of non-profits, every dollar counts. This document outlines a simple yet effective strategy that can save your organization 7% on essential purchases such as office supplies and event costs. By applying for a Sales Tax Exemption Certificate, your non-profit can redirect those savings back into your mission, enhancing your impact in the community. The Problem Many non-profits are unaware of the potential savings available through the Sales Tax Exemption Certificate. This oversight can lead to unnecessary expenses that could otherwise be allocated towards fulfilling your organization’s goals. Here’s How to Fix It 1. Get Your Certificate: Start by applying for your Sales Tax Exemption Certificate. You will need your IRS 501(c)(3) letter and your Federal Employer Identification Number (FEIN) to complete the application. 2. Renew on Time: Be mindful that these certificates often have expiration dates. For instance, in Florida, they expire every 5 years. It’s crucial to keep track of your renewal dates to avoid any lapses in your exemption status. 3. Reap the Savings: Once you have your certificate, you can save 7% or more on every purchase. This is a significant amount that can be redirected to support your mission and enhance your organization's effectiveness. Take Charge Don’t let your organization miss out on these savings opportunities. Ensure you are fully informed about the process and requirements by visiting your state’s tax department website. Get started today and take control of your non-profit’s financial health!

We analyze the key themes and insights presented in a newsletter from "Non-Profit Money Minute" which applies Alex Hormozi's business growth framework of "more vs. better" to the non-profit sector. Core Concept: The newsletter argues that non-profits, like for-profit businesses, can optimize their growth by strategically choosing between two paths: - "More": Expanding reach, volume, or output. - "Better": Improving efficiency, quality, or conversion rates. The decision hinges on a simple principle: choose the option that yields a greater return on effort. Applying the Framework: The newsletter illustrates this principle through three examples: - Volunteer Outreach: If expanding to a new area doubles volunteer numbers, it's likely a better strategy than refining messaging for a marginal increase in sign-ups. - Donation Appeals: Improving the appeal message to boost response rates within a current donor base might be more efficient than expanding the audience slightly. - Grant Applications: While submitting more applications could lead to more funding, if resources are limited, focusing on improving the quality of existing applications might be a more sustainable approach. Key Takeaway: The "more vs. better" framework provides a valuable tool for non-profits to make strategic decisions, particularly during peak fundraising season. By carefully assessing the potential return on effort for each option, non-profits can maximize their impact with limited resources. Quote: "Alex Hormozi’s “more vs. better” approach can help your non-profit achieve strategic growth with the best return on effort." Analysis: The newsletter effectively simplifies a complex business concept and applies it to the non-profit context. The examples provided are clear and relatable, making the framework easy to understand and apply. Further Considerations: While the framework offers valuable guidance, each decision should also consider: - Specific organizational goals and priorities: What are the most critical areas for growth and impact? - Resource constraints: Which option is realistically achievable given available time, budget, and staff capacity? - Long-term sustainability: Which option sets the organization up for continued success in the future?

Hey everyone! With year-end fast approaching, it’s time to prepare for 1099-NEC filings. Nonprofits often work with independent contractors, and even though you’re tax-exempt, you’re still required to report payments to these vendors! Here’s what you need to know: 1. What to Report: - File Form 1099-NEC if you’ve paid $600 or more to any non-employee contractor, freelancer, or service provider in 2023. - Typical services covered: guest speakers, consultants, and any freelance services used for your nonprofit’s programs or admin work. 2. Gather Your W-9s: - Before you file, make sure you have a completed Form W-9 from each contractor. This ensures you have their Taxpayer Identification Number (TIN) and current address for accurate reporting. 3. File by January 31, 2024: - The IRS filing deadline for Form 1099-NEC is January 31, 2024—this applies to both filing with the IRS and providing copies to recipients. - E-filing makes the process quicker, and many e-file providers can send recipient copies for you. 4. Penalties for Late Filing: - Failing to file or filing late can lead to penalties, starting at $50 per 1099 and increasing with further delays. Quick Tip: Avoid common mistakes by double-checking each contractor’s information, including TIN and address. Accurate 1099s are essential to keeping your nonprofit in good standing and avoiding IRS headaches. If you need help with 1099 filings or have questions about reporting requirements, feel free to ask here. Let’s keep our nonprofit operations running smoothly! 😊