Improve cash management to control budget deficits

In an economic downturn, when most nonprofits simultaneously face revenue losses and the growing needs of their constituencies, it would be wonderful to find a simple and painless way to improve cash flow. There’s no easy solution to the cash crunch, but this article offers tips on cutting expenses, getting more cash from traditional avenues, and using cash reserves — or the investments your board has designated for future use — to support your operations. A sidebar offers an example of a simple cash flow forecasting model
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All eyes on governance

More and more, “governance” crops up in discussions about the nonprofit sector. But this is a new challenge for many board members, who may be more adept at fundraising than they are at such governance issues as determining compensation levels, gift acceptance policies, or procedures for tracking the use of grants. Specific recommendations for improving governance are described, while a sidebar offers four categories of principles to provide the backbone for a board’s policies.
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Form 990: Schedule G changes tracking of fundraising, gaming

With new Form 990 tax requirements taking effect May 15, nonprofits will have to pay greater attention to how they track information for their tax returns. One new schedule will apply to many: Schedule G, “Supplemental Information Regarding Fundraising or Gaming Activities.” This short article explains what a nonprofit needs to do if it earns revenue of $15,000 or more from fundraising activities or events or from gaming activities.
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News for Nonprofits

This issue highlights reporting requirements for noncash contributions; new IRS initiatives involving charitable spending, nonprofit governance, noncash contributions and student loan organizations; and an announcement that there are now 1.8 million tax-exempt organizations in the U.S..
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