Many not-for-profits are poised to grow, but recognize risks
According to a recent study, Nonprofit Finance Study: Managing Growth, conducted by not-for-profit software firm Abila, more than 75% of not-for-profits are at least somewhat likely to pursue growth through expanded fundraising efforts during the next 12 to 18 months. In addition, the study also found that 84% of the financial professional respondents expect to seek new grant funding opportunities through pursuing partnerships with other organizations (72%), providing new services (69%) and seeking corporate sponsorships (67%).
The results do not only highlight a desire to grow among not-for-profits. They also reflect the respondents' recognition that growth makes risk management more challenging. More than 60% indicated that, as their organization grows, their ability to manage risk becomes harder.
If your organization is poised for growth, the report suggests a number of risk management activities. Some examples include creating contingency plans for uncertainty of future funding, maintaining compliance with funding requirements, assessing internal controls and training employees.
Your 990-EZ filings get easier
According to the IRS, one out of three not-for-profits that paper file Form 990-EZ make a mistake. In response, the IRS is updating its Form 990-EZ in an effort to reduce errors. The updated form has 29 help icons to help small and midsize not-for-profits avoid common missteps. The icons describe key information you need to complete many of the form's fields and provide links to useful information on the IRS website. Additionally, your CPA can work with you to ensure your 990-EZ is filed properly.
Gamers raise funds for hurricane victims
When natural disasters hit, many people look for ways to help the survivors get back on their feet. Some not-for-profits have found particularly innovative approaches to compound the efforts they make and donations they receive. For example, The Los Angeles Times reports that one charity, Direct Relief, received over $500,000 from thousands of online gamers in the wake of the 2017 hurricanes.
Gamers also raised more than $5 million for Save the Children over the last five years by holding marathon gaming sessions on live-stream platforms, such as Twitch and Gaming for Good. The platforms let viewers watch and talk to their favorite players. The resulting donations have prompted more not-for-profits to reach out to the gaming community to build alliances.
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