Accounting Tips | Chazin

Why Your Nonprofit Needs a Conflict of Interest Policy

Posted on September 8, 2021 by Haley Neitzel

Are you one of the few nonprofit organizations without a conflict of interest policy in place? Studies show that over 95% of nonprofit organizations employ a conflict of interest policy–and with good reason. These policies offer nonprofit organizations ethical standards and protection to ensure all actions on behalf of the organization are transparent and free of potential ethical dilemmas. In this article we’ll be covering the benefits of setting up a conflict of interest policy at your organization and how you can start…

When to Seek Virtual Accounting Assistance

Posted on August 25, 2021 by Haley Neitzel

The responsibilities of nonprofit executive leaders are many but sorting through data to get a clear picture of the organization’s financial health should not be one of them. When preparing for a board meeting have you ever asked yourself, “Do I have all the important and relevant data to help board members feel assured they understand the organization’s financial position?” Do you, as the leader of an organization, truly understand your financial reports and can you clearly explain those to stakeholders in a way…

BEWARE OF THE DOG: How to Improve Your Nonprofit Organization’s Charity Watchdog Rating (Part 2)

Posted on August 18, 2021 by Haley Neitzel

For better or for worse, charity watchdogs (CWDs) play a substantial role in any nonprofit’s reputation. CWDs rate 501(3)(c) public charities based on certain criteria, and both individuals and companies often use those ratings to decide whether to donate to a specific nonprofit organization. Positive ratings often provide a sense of credibility and trustworthiness to…

BEWARE OF THE DOG: Nonprofit Watchdogs and Their Impact on Your Organization (Part 1)

Posted on August 4, 2021 by Haley Neitzel

BEWARE OF THE DOG: NONPROFIT WATCHDOGS AND THEIR IMPACT ON YOUR ORGANIZATION (PART 1) A nonprofit’s Charity Watchdog (CWD) rating helps set organizations apart. A specific rating could make prospective donors flock to a particular organization or warn them to steer clear of it. Because a nonprofit’s credibility is so intrinsically tied to its financial transparency…

What is a Charitable Solicitation License and Do I Really Need Another License?

Posted on July 28, 2021 by Haley Neitzel

If your organization asks for donations, guess what? Most states would say you’re engaging in fundraising activities and, if they think you’re engaging in fundraising, they’ll subject you to regulation. An overwhelming number of states regulate fundraising activities through something called a Charitable Solicitation License (CSL). Although it means more forms and another license, it’s designed to provide donors with transparency and to protect the public from misrepresentation and fraud. Each state has its own…

Working Virtually: Best Practices for Remote Nonprofit Accounting

Posted on July 14, 2021 by Haley Neitzel

2020 was a challenging year for businesses and organizations alike. Knowing how to successfully operate in a fully virtual setting presented many challenges but, also, plenty of opportunities. With the push to adapt to a virtual workplace, many nonprofits are still fine-tuning their processes. Chazin had the advantage of providing a fully remote approach well…

Do Nonprofits Have to Pay Income Taxes?

Posted on June 30, 2021 by Haley Neitzel

Did you know that sometimes nonprofits must pay income tax? It’s true. Just because you have a tax-exempt status, it does not mean that you’re, well, tax exempt! The IRS incorporated into the tax codes something called Unrelated Business Income (UBI) and it’s especially for nonprofit organizations. Frequently, nonprofits have revenue that the IRS considers unrelated to…

Accounting for Fundraising Expenses

Posted on June 16, 2021 by Haley Neitzel

It goes without saying that, for many nonprofits, fundraising is a crucial element towards achieving its goals. Not only does fundraising generate revenue to support mission-critical programs, it can also provide a valuable opportunity to raise awareness for your cause. Guaranteeing your organization’s success beyond the next quarter requires careful planning and prioritizing, as well…

5 Best Practices for Nonprofit Budgeting

Posted on June 2, 2021 by Haley Neitzel

One of the biggest challenges for nonprofit organizations is sustainability. Staying afloat during uncertain times can be especially tough without a proper financial plan in place. A carefully planned budget can help NPO’s maintain and improve their operations and even refocus their goals and objectives when challenges arise. Think of a budget as a roadmap that will guide your decisions on how…

5 Key Tips to Successful Nonprofit Financial Management

Posted on May 26, 2021 by Liza Gagne

By adopting nonprofit financial management best practices, organizations can optimize their present and protect their futures. Following a few key steps can make a big difference in the performance of a nonprofit, giving it the stability and flexibility needed to deliver on its goals and achieve its missions. Following financial management best practices also protects nonprofits from making costly mistakes or taking actions that compromise the organization’s integrity. While it is impossible to…