Nonprofit Accounting Blog by Qbix
How Nonprofits Make Money: Exploring Diverse Income Sources
Nonprofits are key players in serving the public good, yet their financial landscape can be intricate. Despite the "nonprofit" label, these organizations have diverse income streams. Let's delve into why nonprofits need revenue and the innovative paths they take to...
Nonprofit Financial Planning: 4 Vital Reports for Success
Developing a robust financial plan is crucial for the success of your nonprofit, as it not only ensures sustainability but also drives the fulfillment of your mission. Unlike for-profit companies, nonprofits have unique financial goals, requiring accountability,...
Six Financial Management Tips for Small Nonprofits
It's no secret that small nonprofits try to do more with less. But to make the most significant impact, effective financial management is critical. Unorganized finances can lead to unnecessary purchases, improper fund allocation, and poor financial decisions —...
Nonprofit Travel Expenses: Essential Reimbursement Guidelines You Need to Know
Reimbursing your nonprofit staff and volunteers for their travel expenses may seem simple, but only if you have the right plan in place. More specifically, an "accountable plan," as the IRS calls it. But what is an accountable plan, and how do you create and comply...
Five SECURE 2.0 Changes That Impact Nonprofits
If your nonprofit handles employee's retirement plans (like a 403(b)), you'll want to know how SECURE 2.0 affects them. To give you some background, at the end of 2022, President Biden signed into law H.R. 2617, the Consolidated Appropriations Act. One of the...
How to Utilize Donor-Restricted and Unrestricted Funds Effectively
Understanding your nonprofit's net assets equates to understanding your organization's ability to survive and thrive. Net assets are the value of what the organization owns (assets) minus what it owes others (liabilities). It's simply the amount of money left over if...
Mastering Nonprofit School Finance: Tackling the Top 4 Challenges Head-On
..Financial management for nonprofit schools is often tricky, but it doesn't have to be. The four top challenges to be aware of are endowments, fundraising, audits, and strategic planning. Sure, it seems like a lot, but don't worry — we're here to educate you on the...
Keeping Your Public Charity Status is a Breeze
If you follow our blog, you may have seen our recent article about the pros and cons of public charities and private foundations (and how to decide which is best for your nonprofit.) Most founders concentrate on obtaining 501(c)(3) status – a public charity,...
Starting a Nonprofit? Pros and Cons: Public Charity vs. Private Foundation?
If you are thinking about starting a nonprofit organization, setting it up correctly right from the start will make life easier for you and your team in the long run. First, you must determine whether your nonprofit will be a public charity or a private foundation....
Nonprofit Accounting Year-End Checklist
As this year draws to a close, most people are dreaming about festive holidays and new year celebrations. However, the term "year-end" may harbor some anxiety for those in the nonprofit industry. There are seemingly tons of tasks to address before the current year...
Nonprofit Employee Holiday Bonuses: Don’t be a Scrooge
As the year winds down and the holidays approach, it's time to consider paying your nonprofit staff a bonus. The employees of your organization have worked hard, often for less than they're worth, so a year-end bonus is a great way to show your appreciation. But what...
Nonprofit Gift Acceptance Policies: Your FAQs Answered
Today, gifts given to nonprofits come in various forms. They could be cash, securities, real estate, timeshares, art, or perhaps something more unconventional, like cryptocurrency donations. No matter what it is, your nonprofit should evaluate each one to determine if...
The Nonprofit Accounting Cycle: 8 Steps You Should Know
Whether you perform bookkeeping in the nonprofit or for-profit world, knowledge of the accounting cycle is a crucial asset. It helps paint a clear picture of your organization's financial health. But, what is the accounting cycle? We define it here, along with the...
Month-End Close: 3 Best Practices for Speedy Success
How long does it take to complete your nonprofit's month-end close? According to a survey by Sage, about two-thirds of small to mid-sized businesses close their books in 15 days or less. However, 26% of those surveyed closed in one week or less (considered a best...
Will Your Nonprofit Face a First-Time Single Audit?
Pandemic Funding: Nonprofits Facing First-Time Single Audits Did your nonprofit receive any type of stimulus funding from the federal government during the pandemic? If so, your organization may be subject to an unexpected audit. Known as a "Single Audit," many...
Nonprofit Fraud: 6 Ways to Protect Your Organization
Most nonprofits base their culture on honesty, trust, and a solid commitment to goodwill. But sadly, an organization's honorable mission and public image are not always resistant to fraud. According to the Association of Certified Fraud Examiners (ACFE) 2022 Report to...
Nonprofit Compensation Systems Part II: Executive Pay and Credit Card Use
In our first installment of this two-part series, we shared the basics for building an ethical nonprofit compensation system. Here, in part two, we'll dive into another critical component — executive pay and credit card use. These are tricky in the nonprofit world,...
Nonprofit Compensation Systems Part 1: An Ethical Roadmap to Success
Creating a nonprofit compensation system is not as daunting as it may seem. Implementing an ethical program is simplified with the right strategies, structures, communication, and management. But to be successful, it's best to develop a plan — essentially a roadmap,...
How to Start a Nonprofit
If you're wondering how to start a nonprofit, kudos to you. It means that you want to make a positive difference and are willing to go above and beyond to ensure your mission is a success. Yes, it takes work, but what you put into it is what you get out of it — making...
Nonprofit Financials: What to Share With the Board and How Often
When it comes to nonprofit financials, it's wise to know what to share with the Board of Directors and how often to do so. A well-informed Board has all the financial information necessary to best fulfill the nonprofit's mission, strategies, and goals. What's more,...
Nonprofit Cash Reserves: Three Smart Ways to Handle too Much Cash
While it may seem rare, we've been seeing more instances of nonprofits receiving windfalls of cash. And as wonderful as 'too much cash' may seem, it's also daunting. Large cash reserves come with large amounts of responsibility — especially in the nonprofit world. So...
Nonprofit Audits: 5 Reasons to Do One, Even if Not Required
Wondering if you have to perform an audit for your nonprofit? While the IRS doesn’t require nonprofits to obtain audits, some other state and government agencies do. Much of it depends on the size of your organization and its spending. But whether your nonprofit must...
Nonprofit Event Revenue Reporting: Form 990 vs. GAAP
If you're a nonprofit that hosts events, do you know how to report the revenue accurately? Whether an auction, marathon, ball, golf event or gala, accounting for each is tricky. That's especially true when reconciling between GAAP financial statements and Form 990....
Multiple Streams of Revenue: 11 Ideas for Nonprofit Success
Are you interested in multiple streams of revenue for your nonprofit? If so, you’re not alone. Part of a nonprofit’s mission is to generate sustainable funding for its cause. Creating a broad mix of funding sources is the key to a nonprofit’s financial success. It...
Top Trends to Be Aware of in 2022
Nonprofits: Top Trends to Be Aware of in 2022 What are the top trends that nonprofits need to be aware of in 2022? It’s a good question considering the past few “unprecedented” years. While it’s impossible to predict the future, we’ve seen and experienced a lot with...
2021 COVID-19 Income Tax Deductions to Consider
Did COVID-19 impact your income taxes in 2021? If you're not sure, some lesser-known tax deductions could help you reduce your tax burden. Because of the pandemic, many people worked from home, bumped up their charitable giving, and sadly, some even experienced the...
Nonprofit Accounting: Top 5 Reasons to Move to the Cloud
With cloud-based accounting, you’ll have a clear understanding of where your business stands financially, anytime, and from anywhere you have internet access. It’s real-time data you can trust — a significant asset for any nonprofit organization working with Qbix Accounting Solutions.
Lean Accounting: Why It’s Important for Nonprofit Success
What is lean accounting? Why should you care? What’s more, how do you implement it? Qbix Accounting Solutions breaks it down…
Qbix is starting a new team. Would you like to join?
Qbix is starting a new client services team! Qbix has been very fortunate, despite the pandemic, to have unprecedented growth. Nonprofits and small businesses alike are seeing the benefits of our well-trained teams and cloud-based solutions. Opportunities are remote...
Qbix 2020 Year in Review and Looking to 2021
What a year 2020 has been, huh? No one could have expected it to turn out the way it did. COVID-19 has been a game-changer for all of us. Every business and organization has had to work in new ways, requiring agility and quick pivots to keep up (Qbix included.) As a...
Nonprofit Financial Crisis: 5 Best Ways to Handle it Now
Do you foresee an impending financial crisis for your nonprofit? It's a scary prospect, especially with the current pandemic. Most know it doesn't take much for a financial crisis to occur. Examples include a terrible weather situation, a major cash-flow challenge, a...
The Must-Know Tax Implications for Working Out of State
During the pandemic, many of us fled home to find refuge in other places. Some moved in with mom and dad for a while. Others escaped to the safety of their secondary residences or vacation homes. Some got permission to work from anywhere in the country — and now find...
Trump’s Payroll Tax Cut: FAQs and What it Means for You
To put more money in American workers’ pockets, Trump’s new payroll tax cut may not be the pandemic relief many were hoping for. You see, it’s not exactly a "cut." It’s more like a tax holiday, or better yet, a tax deferral. Whether your business is a nonprofit...
Georgia Nonprofit Highlight: The Innovation Fund Foundation and QED Tax Credit
Now and then, we like to highlight one of our nonprofit clients on our blog. Granted, it's challenging to pick just one, as they all do such amazing work. But this time, we're putting the spotlight on The Innovation Fund Foundation (IFF). If you live in Georgia, keep...
Cryptocurrency: 3 Reasons Why Nonprofits and Donors Love It
Wait — cryptocurrency and nonprofits...all in the same sentence? Stick with us here, and you’ll soon understand why it makes a lot of sense (and literally, cents) for both donors and nonprofits. If you’re not familiar with cryptocurrency, Investopedia defines it as “a...
Rage Philanthropy: 7 Ways Nonprofits Can Use It to Their Advantage
"Rage philanthropy," also known as "rage giving" or "episodic giving," is a phenomenon that occurs as a result of specific events or news episodes. The phrase made its debut after the last presidential election — a time when progressive charities saw a significant...
Nonprofit Overhead Ratio: 7 Practical Ways to Reduce It ASAP
It's not a shocker that nonprofits are facing tremendous challenges during the coronavirus pandemic. To help, our recent blog posts, Nonprofit Survival During a Pandemic and Fundraising Tips for Surviving COVID-19, include methods nonprofits can use to stay afloat...
Nonprofit Survival During a Pandemic
It doesn't matter if you're a person, a company, or a nonprofit organization, we're all doing our best to survive the coronavirus pandemic. Nonprofits are at an especially high risk of breakdown since they're pushed to the brink. More than ever, people have increased...
Nonprofit Fundraising: Tips for Surviving COVID-19
Most nonprofits know that the spring and summer seasons are the most popular times to hold fundraising events. But not this year. COVID-19 has canceled many, if not all, of those charitable initiatives. The coronavirus has negatively impacted all types of businesses...
Charitable Solicitation Rules: Your State’s Adjustments
Keeping up with change is a challenge, especially for nonprofits. In today's pandemic-driven environment, there are more than ever — especially if your organization handles charitable solicitations. Recently, more than half of the states with solicitation reporting...
Nonprofit Donor Disclosure Rules: What’s New
Have you heard the latest in donor disclosure news? Recently, the IRS and the Treasury Department issued final regulations that changed the requirements for many tax-exempt organizations. The new rule means that most 501(c) nonprofits no longer have to report their...
Grants: Types, Management, and Tools for Success
Any nonprofit knows that grants are an essential part of the organization. They are the lifeblood that help achieve a nonprofit's mission. Knowing the types of grants that require management and the best tools to administer each is a key to success. Proper management...
Outsourced Nonprofit Accounting: Why It’s Special and Essential
Nonprofit organizations are distinctive because their missions address various needs. From religion to education, health to social services, commerce to amateur sports clubs, and of course, the arts, each caters to a wide variety of sectors. But one thing they all...
Outsourced Nonprofit Accounting: Three Unique Benefits
It's understandable: Handling accounting while focusing on achieving your mission is challenging, to say the least — but it doesn't have to be. When you outsource your nonprofit's accounting to an expert company, you're gaining more than help in just those two areas....
Nonprofit Storytelling: Use Data Visualization to Engage and Inspire
Data visualization. Have you heard of it? If not, don't worry — it's not rocket science. Data visualization is exactly what it sounds like. It's the presentation of data in a graphical format. Things like charts, graphs, and scorecards, are all excellent data...
Form 990: A Nonprofit Marketing Tool
Storytelling is a great skill. Everyone knows that the best stories have the power to influence and inspire people. As a nonprofit, you likely have several compelling stories to tell. But, have you ever used your Form 990 as a communication tool? With so many...
Nonprofit Tax Season FAQs
"In this world, nothing can be said to be certain, except death and taxes." - Benjamin Franklin Our friend Ben is right. No one is immune to death nor taxes. And just because your organization is a nonprofit doesn't mean you're dismissed from filing tax returns. If...
Nonprofit Accounting: What is the cloud?
As a nonprofit organization, you're already aware that financial management is a complicated task. If you're struggling to keep up, there's a highly effective, two-part solution worth considering: 1) outsourcing your accounting tasks and 2) utilizing the cloud to do...
Nonprofit Accounting? Qbix Accounting Solutions Can Help
Whether you've heard of us before or not, we want to introduce (or perhaps re-introduce) you to Qbix Accounting Solutions. In the most basic of terms, we provide outsourced accounting and bookkeeping services for nonprofit organizations throughout the US. Anyone who...
Budgeting for Nonprofits Checklist
Two Key Components When Budgeting for Nonprofits Most nonprofits don't want to spend their time thinking or worrying about money, but recognizing revenue and expenses in a timely manner is essential when budgeting for nonprofits. Revenue: how a nonprofit plans to get...
Nonprofit Accounting Challenges: Mastering FASB
Nonprofit Accounting Challenges due to ASC 606 The long awaited standards update has brought forth nonprofit accounting challenges as well as clarification. Since its release, nonprofits have been struggling with the specifics. You may have read our intro to the new...
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