Financial and Nonprofit Management

1
Financial and Nonprofit Management
2
3 Kinds of People

• Those that make things happen
• Those that watch things happen
• Those that wonder what happened

3
Defining Factors of a Legal NPO

• Formal structure
• Incorporated
• Operations governed by bylaws
• Tax exempt status from IRS
• Purposes defined
• Governed by a board of directors

4
NPO Management Tools

• Annual report
• Area Plan
• Annual Plan of Work
• Budget
• Meeting Agendas
• Minutes
• Financial statements

5
NPO Management Tools

• IRS 990 (state threshold)
• Audit
• Marketing plan
• Fundraising plan
• Bylaws
• Insurance policies
• IRS 1023

6
NPO Management Tools

• Financial policies
• Personnel policies
• Staffing plans
• Funding analysis
• Investments
• Cash flow/reserve analysis
• Bookkeeping system

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NPO Management Tools

• Board Member handbook
• Articles of Incorporation
• Grant matrix
• Statement of vision, mission, values

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RCD Councils As NPO

• Legal protection
• Credibility
• Organizational structure
• Identity
• Tax advantage
• Fund raising power
• Marketing tool

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Different Types of Tax Exempt

• 26 different types of organizations identified
  under section 501 in the tax code.
• Contributions allowable in seven
• Most flexible and desirable is 501C3

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Do NPOs Have Tax Responsibilities?

• YesUBTI Unrelated Trade and Business Taxable
  Income (Income unrelated to core mission) if more
  than 1,000/year
• State Taxes
• State Solicitation Regulations

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Does Attitude Count?

• Absolutely. Your Council should operate as a
  business

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Financial Management

• Bookkeeping system
• Contract management
• Audits
• In-kind
• Budgeting
• Grant matrix
• Grant summaries
• Selecting an auditor

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• IRS 990
• Check vouchers
• IRS 1099
• OMB Circulars A-110, A-122, A-133
• 941
• Invoicing
• Handling deposits
• Allocation plan
• Indirect cost rate

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OMB A-110

• Uniform Administrative Requirements for Grants
  and Agreements with Non-Profit Organizations
• www.whitehouse.gov/omb/circulars/a110/a110.html

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OMB A-122

• Cost Principles for Non-Profit Organizations
• www.whitehouse.gov/omb/circulars/a122/a122.html

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OMB A-133

• Audits or States, Local Governments, and
  Non-Profit Organizations
• www.whitehouse.gov/omb/circulars/a133/a133.html

17
Lobbying

• Is allowable under 501C3 (except private
  foundations)
• Two rules
• No substantial part or orgs activities are
  lobbying
• Org elects (IRS Form 5768), then sliding scale up
  to 1M
• www.independentsector.org

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Insurance

• General Liability
• Property
• Directors and Officers
• Vehicle
• Professional
• Product

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Personnel Management

• Employment policies
• Performance evaluations
• Orientation
• Hiring/firing/supervision
• Training
• Benefits

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• Lindy Turner
• 865-828-5927
• lindy_at_clinchpowell.org
• www.clinchpowell.net