A Fixed Asset is created when you purchase or acquire through donation equipment, land, building, vehicles, furniture or other assets that have a useful life of more than one year AND cost more than a certain predetermined dollar amount. A Fixed Asset is most often a tangible, physical thing that cannot be easily converted to cash and
Read more →One of the biggest challenges for nonprofit organization is the constant attention that must be paid to cash flow. The contributions, especially grant awards, arrive as a large amount of cash that must be used sparingly over a period of several months until the next grant award is received. So the answer is, of course, not to let
Read more →The most common mistake I see are cost allocation models happens in how an organization assigns time and effort to Management & General. In particular, I see a lot of organization automatically assign 100% of the Executive Director (ED) to the M&G expense by virtue of their position. The IRS thinks of expenses for nonprofit organizations
Read more →If your financial reports could talk, I believe they would ask three key questions: What is your story? Given that you are a public charity, if someone picks up your financial report, what story is being told? Can the financial reports be presented in a way that speaks to your mission and purpose? Do your financial reports
Read more →