The Nonprofit Outlook: Staying Ahead of the Financial Curve

EMAIL
Facebook
Google+
https://www.gonzalolaw.com/the-nonprofit-outlook-staying-ahead-of-the-financial-curve/
Pinterest
Pinterest

nonprofittrends

As a tax-exempt organization, your business goals are likely not profit-driven, but they are purpose-driven. That’s fantastic and truly why your organization is authentic with heart and impact! However, adopting a financially competitive mindset can lead to more and better services provided, which leads to more lives being changed. The following are key ways to stay ahead of the financial curve:

1. Identify Opportunities for Increased Charitable Giving. Total giving to charitable organizations was $410.02 billion in 2017. This is an increase of 5.2% from 2016. Charitable giving by individuals has been on an upward trend for the past several years. Thus, organizations can be optimistic about individuals’ willingness to make financial contributions.

2. Find Creative Ways to Recruit More Volunteers. While people are being more generous with money, this is not the case with time. According to the Bureau of Labor Statistics, there is a downward trend of people willing to volunteer with nonprofits, and especially with individuals willing to volunteer during the workday. Groups that rely heavily on volunteer work will need to strategically face this challenge of recruiting and retaining volunteers.

3. Diversify Funding Sources. At the federal level, state funding looks very likely to decrease in the wake of the tax law passed in 2017. However, this creates an opportunity for non-profits to serve those in the community that may be experiencing a greater need.

4. Identify Who Your Donors Are and Discuss with Your Accountant the Tax Law Impact on Your Donor Base. The new tax law has been shown in many cases to increase the amount of money individuals who earn over $1 million/year will earn post tax. Increased income at these higher levels is an opportunity for nonprofits with wealthy donors. The donors in these tax brackets may be in a better position to donate to your organization. Those in the different income brackets can also donate yet may have a decreased incentive, as fewer people will itemize charitable donations on their taxes. However, regardless of the income earned, everyone can have a part to play in the success of your organization!

Qualified legal counsel can advise your organization on best practices, federal regulations, and how to maintain your tax-exempt status. Contact our legal counsel, Nouvelle L. Gonzalo, today for a complimentary consultation to discuss your organization goals at ngonzalo@gonzalolaw.com.

Resources:
1. Giving Statistics. https://www.charitynavigator.org/index.cfm?bay=content.view&cpid=42. Accessed 7/27/18.
2. 5 Trends Facing Nonprofits Now, by Katie Zwetzig and Toby Chalberg. https://www.nonprofitpro.com/post/5-trends-facing-nonprofits-now/. Accessed 7/27/18.
3. Hot topics to help you plan for what’s ahead in 2018, by Jennifer Chandler. https://www.councilofnonprofits.org/thought-leadership/hot-topics-help-you-plan-what-s-ahead-2018. Accessed 7/27/18.
4. How the new 2017 U.S. tax law may impact fundraising revenues. https://www.gailperry.com/new-2017-tax-law-impact-on-nonprofit-fundraising/. Accessed 7/27/18.

Comments are closed.