Finance and Operations
How Do I Orient My Nonprofit’s New Employees?
It is a good idea to have a formal orientation program so that all newly hired employees get the same treatment and information. This orientation period will probably last several weeks. You will want to be both welcoming to your new employee, and attentive to legal...
Should Our Nonprofit’s Executive Director be an Employee or an Independent Contractor?
1. The IRS will make its own assessment of whether a person is an employee or independent contractor of an organization based on the level of control the employer has over that hired person’s conduct and work. It is important for the organization to evaluate...
What is the Difference Between a Nonprofit Employee and a Nonprofit Independent Contractor?
Employee – Black’s Law Dictionary describes an employee as “A person in the service of another under any contract of hire, express or implied, oral or written, where the employer has the power or right to control and direct the employee in the material details of how...
When Does My Nonprofit Organization Need an Audit?
An annual audit is an examination of an organization’s financial systems and transactions at the end of a year by an independent, certified, professional auditor. The audit assesses whether or not financial statements have been prepared in conformity with Generally...
What Financial Information Should My Nonprofit Provide to the Board?
Board members are responsible for understanding the financial condition of their organization in order to fulfill their fiduciary obligations. The IRS Life Cycle states that “Directors are stewards of a charity’s financial and other resources. The IRS encourages the...
Does Our Nonprofit Organization Need a Conflict of Interest Policy?
Nonprofits enjoy the public’s trust, and therefore must comply with a diverse array of legal and regulatory requirements. Organizations should conduct periodic reviews to address regulatory and fiduciary concerns. One of leadership’s fundamental responsibilities is to...
Nonprofit Advocacy Works! Success in Protecting or Expanding Important Protections and Services
Nonprofit advocates achieved major successes in the recently ended 2018 General Assembly Session. The Legislature restored planned budget cuts to providers of critical services, and to important programs. There was significant progress on numerous policy...
What is a Conflict of Interest?
Nonprofits enjoy the public’s trust, and therefore must comply with a diverse array of legal and regulatory requirements. Organizations should conduct periodic reviews to address regulatory and fiduciary concerns. One of leadership’s fundamental responsibilities is to...
I’m a Nonprofit Executive Director. Can My Board Hire or Fire an Employee or Tell Me Who to Hire or Fire?
The board is responsible for hiring, evaluating, and, if needed, firing the executive director (ED). Though not illegal, the board should not be involved in hiring, evaluating or firing any other employee. This is the responsibility of the executive director and, if...
Can Nonprofit Executive Directors Serve on the Board?
Best practices suggest that it is not a good idea to have the Executive Director playing such a role within the organization, whether the position is a voting or non-voting position. Keep in mind the following precautions if the organization decides to place its...