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! 😊

More background information to support today's email newsletter (https://46989368.hs-sites.com/non-profit-money-minute-when-filing-on-time-is-actually-filing-late?ecid=&utm_source=hs_email&utm_medium=email&_hsenc=p2ANqtz-8uh0ES80JC3sV9cjCy3cIqxOogwpepThlopu3_SM1IBbyAa_O_KbVOjOfpa-oKEUblHWdl): While the IRS provides extended deadlines for filing Form 990, nonprofits seeking grant funding should prioritize early filing to ensure their tax-exempt status is updated in Publication 78, a critical resource for funders. Key Ideas and Facts: 1. Publication 78 Delay: The IRS typically takes 3-5 months to update Publication 78 after receiving a Form 990. Filing close to the extended deadline (November 15) can result in delayed visibility until the next year. 2. "Waiting until the November deadline can delay your visibility in Publication 78 until next year—potentially putting grant eligibility at risk." 3. Funder Reliance on Publication 78: Many grantmakers rely on Publication 78 to verify an organization's tax-exempt status before awarding funds. An outdated status jeopardizes grant eligibility. 4. "Funders rely on the IRS's Publication 78 to verify your tax-exempt status..." 5. Benefits of Early Filing: Filing Form 990 early ensures visibility and eligibility for funding opportunities throughout the year. 6. "Staying ahead of this timeline can keep you visible and competitive in grant cycles" 7. Proactive Communication: If there are delays in Publication 78 updates, nonprofits should proactively communicate with funders and confirm their active tax-exempt status using their determination letter. 8. Impact on Reputation: Some funders may perceive delayed filings negatively, impacting an organization's reputation for transparency and efficiency. 9. "Some funders view delayed filings as a lack of transparency, which can impact your organization’s reputation."

With more non-profits than ever entering the scene, competition is rising. To thrive, existing non-profits must focus on what sets them apart. Financial transparency, robust compliance, and clear donor communication are essential to maintaining a strong reputation and fostering trust. In this post, we share insights on practical strategies to stay competitive, like leveraging your organization’s experience, building stronger donor relationships, and keeping accurate financial records. 🎧 Tune in to our latest podcast episode to learn these essential tips for navigating an increasingly crowded sector! #NonProfitSector #FinancialTransparency #DonorTrust #NonProfitStrategies #StandOut #Compliance #NonProfit Article - https://smithcpasassociates.com/the-overcrowded-sector/