Entries with Author: Scott Curry

Social media has taken over millions of nonprofits. It provides a cheap, easy way for agencies working on a limited budget to reach their target audience and build new contacts. And, it can be one of the most effective ways for nonprofits to spread word about what they do and how they do it.

Recent reports show that despite shrinking budgets, and extensive staffing challenges across the board, nonprofits are still finding value in growing their social networks. According to one blogger, recent studies have found that:

  • 98% of nonprofit agencies have a Facebook page with an average community size of over 8000 fans.
  • Average Facebook and Twitter communities grew by 30 and 81% respectively.
  • Average value of a Facebook “like” is $214.81 over the 12 months following acquisition.
  • 73% allocate half of a full-time employee to managing their social networking activities.
  • 43% budget $0 for their social networking activities.
  • The top 3 factors most nonprofits are using to gauge the success of their social media are: strategy, prioritization, and dedicated staff.

Statistics compiled by Katya’s Non-profit Marketing Blog

But still, social media presents some distinctive challenges for nonprofit organizations.

Because social media provides captive audiences with thousands of attention-grabbing options, nonprofits have to find quick, easy ways to distribute their information and to keep fans engaged. Using interesting infographics goes a long way to keeping your audience aware and involved with a nonprofit mission though.

Innovative and easy to digest, infographics combine key

facts, compelling stories, and interesting imagery that work to start conversations both online and off. “Good visualizations can also help charities better understand their own data and use those insights to improve their programs,” said Jake Porway, founder of Data without Borders, in an article published by The Chronicle of Philanthropy.

By sharing simple messages that can be understood with little or no prior knowledge of the subject matter, nonprofits are finding that they can easily improve their operations and increase their reach.

For more examples of well received infographics and tips on how to make your own, read the full article on The Chronicle of Philanthropy.

Using a business model has grown to become an essential tool when making any business or financial decisions within the nonprofit sector. When incorporating a new business model, a few key components should be discussed to ensure the business model will not only provide financial stability but also further the growth of operations within your organization. Along with understanding the financial side of a new business model, it is important to factor in the daily tasks that occur in a business, including cash flow—money being transferred in and out of an organization. 

Cash flow can be simply defined as a movement of money within the organization’s accounts. It is where the numbers and financial reports show how the money has moved and how it’s been accounted for. When managing cash flow, the question you will be asked repeatedly is “When?” —when do you pay your staff, when will you be receiving a grant payment or  when is a particular bill due. And while all nonprofit business models are different in one way or another, they all rely on the “when” with the movement of money. 

When creating a nonprofit business model, there are two main components to factor in—what kinds of programs and services does your nonprofit offer to the community and most importantly, how are they funded. Each of these components require the understanding of organizational cash flow in order to have effective financial planning. To further understand what kinds of programs and services a particular organization offers, you would look at where and how money is being spent.

When looking at how an organization is funded, this can provide a better understanding of what’s to come in terms of cash coming into the business. If by chance the cash flow doesn’t quite match up with the services offered, this could be further explained by how the organization receives its funding. Each type of income varies based on certain implications and challenges for cash flow, so if a business model is built primarily around one type of funding, this will have to be factored into the structure of the business model.

Creating a smart and strategic business model requires you to be informed and collaborative in cash flow management. This will ensure that your nonprofit’s long-term strategy isn’t hindered by obstacles that could have been avoided. 

In December 2007 when the Great Recession officially began, it’s doubtful that anyone could have predicted that over the next several years almost 35 states would face insolvent unemployment insurance (UI) trust funds.

For Connecticut, and its pool of steadily increasing jobless workers, it took just over two years.

And now, three years after reaching insolvency, the price of the state’s debt is being leveraged on all employers remaining in the tax rated state system.

Although the principal balance of the $632 million loan isn’t yet due, employers are already being called on to cover the interest payments for the debt. For nonprofits remaining within the state UI system, their organization can expect to add approximately $1.70 per thousand dollars of taxable payroll, or about $25.50 per full time employee to their 2012 UI taxes.

As required by law, all employers within the state tax system will be billed directly for this assessment on or about August 1, which must be paid by August 31. Paid outside of the normal state UI system, this additional fee will add on to the gross overpayment of more than $162 million made by Connecticut in the past three years.

For nonprofits still in the state system, there are other options, such as leaving the state to join a Trust, like the Unemployment Services Trust (UST), that can help save more money and gain greater predictive control over yearly budgeting.

By reimbursing the state dollar-for-dollar the claims of only their own former employees, nonprofits that join UST are able to stop overpaying in the state tax system and do more with their money. In fact, Connecticut nonprofits with 10 or more employees can expect to save an average of $10,484 a year after joining UST.

Written by Barry Omahen, CPA, Managing Partner, and Stephanie Kretschmer, Marketing Manager, Lindquist LLP

If your organization is considering having an audit for the first time or changing auditors, it is wise to exercise due diligence when obtaining bids for services. With the continued focus on transparency and accountability by government agencies, donors, parent organizations and the general public, the selection of a qualified certified public accountant (CPA) has become increasingly important.

Quality audit and accounting services help nonprofit organizations safeguard their assets; improve internal controls and efficiency; complete timely and accurate returns to comply with federal and state regulatory filing requirements; and stay on top of regulatory requirements, accounting standards and industry best practices.

Before you request bids, your organization needs to answer a few key questions:

  1. Who is going to be responsible for the selection process? Will it be an individual (Executive Director, Director of Finance or Controller) or a group (Board of Directors or Audit Committee) Does your organization have an Audit Committee and, if not, would it make sense to create one?
  2. What services do we need? Define your organization’s needs and create a list of required services. Getting clarity on exactly which services are needed will help ensure that you are comparing apples to apples at decision time.
  3. When do we need these services? Consider your year-end deadlines, filing deadlines and scheduled meetings of the Board of Directors. How quickly after year-end do you close your books? When do you want the financial statements presented? You will need to communicate any timing expectations to prospective bidders.
  4. Upon which criteria are we going to base this decision? Consider: prior experience with not-for-profits; organization, location, size and structure of the firm/individual; understanding of the work to be performed, including ability/plan to complete services according to the organization’s timeframes; experience of references; price; industry knowledge and approach to communications. Some organizations develop a weighting system to help ensure they are objective when making the decision.
  5. What is our process and time frame for making a decision? Determine whether you are going to allow candidates to come onsite to meet with accounting staff or wait until you have received proposals and identified finalists for the decision-makers to interview—or both. Outline when you are going to issue a request for proposal, how long candidates have to ask questions or request an onsite visit, when candidates need to submit a proposal, when you expect to interview finalists, and when you expect to reach a decision.

Gone are the days of calling a couple of CPAs to say, “Give me a bid,” and reaching an agreement with a handshake. Today’s organizations need to be conscientious about their selection of a CPA. Conducting a diligent and thorough selection process not only satisfies key stakeholders, but ultimately helps protect the organization.

Barry Omahen, CPA, is the Managing Partner of Lindquist LLP, a certified public accounting firm specializing in audits of not-for-profit organizations and their related employee benefit plans. Barry’s chief responsibilities include supervising Lindquist LLP’s day-to-day operations and the firm’s quality control review process. Email Barry at bomahen@lindquistcpa.com.

Stephanie Kretschmer, Marketing Manager, helps the professionals in Lindquist LLP’s four West Coast offices attract and retain clients. She oversees firm communications and has responded to hundreds of requests for proposal in her career. Email Stephanie at skretschmer@lindquistcpa.com.

To learn more from Lindquist’s nonprofit-focused CPAs, watch the recorded webinar: “Beyond the Numbers- How to Review your Organization’s Form 990.”

Already Offering Multiple Nonprofit-Exclusive Programs, Designed to Streamline Operations and Reduce Overhead Costs, UST Launches Unemployment Insurance Program to Further Safeguard Nonprofits.

Santa Barbara, CA (October 19, 2017) The Unemployment Services Trust (UST), a program dedicated to helping nonprofits ensure compliance and protect assets, today announced it is rolling out a fully insured program, called UST Secure, which will provide full coverage for all claims within the year as well as access to claims management tools, certified HR guidance and award-winning outplacement services.

Already working with more than 2,200 nonprofit participants from across the nation, UST aims to provide nonprofit organizations with workforce solutions that reduce costs and strengthen their missions. Having received frequent requests for an insurance option over the last few years, UST is partnering with Ohio Indemnity Company to deliver an insurance solution specifically for 501(c)(3) employers.

“We are honored and excited to work with UST,” said Ron Lucki, Vice President of Business Development at Ohio Indemnity Company. “As one of the nation’s leading specialty insurance carriers for nonprofits and financial institutions, we look forward to growing with UST and offering insurance options that will enable UST to serve their clients with insurance protection and peace of mind.”

“UST Secure is another way we can provide financial relief and an invaluable sense of security to the nonprofit community.” Donna Groh, Executive Director, UST

Ohio Indemnity Company is a fully licensed and admitted insurance company that has provided specialty insurance products to all 50 states plus District of Columbia for nearly 60 years. OIC’s financial stability has earned them an “Excellent” rating by A.M. Best, a global full-service credit rating agency and is also listed by the U.S. Treasury as an approved surety bond provider.

“No nonprofit is alike, so we have continuously looked for new resources and program offers to expand our reach within the sector,” says Donna Groh, Executive Director of UST. “UST Secure is another way we can provide financial relief and an invaluable sense of security to the nonprofit community.”

501(c)(3) nonprofit employers who are interested in learning more about UST Secure can reach out to a dedicated Unemployment Cost Advisor at 1-888-249-4788.

“If there is one lesson the nonprofit sector has learned in the past few years, it is the value of maintaining healthy reserves,” says Hilda Polanco in a recent article from Philanthropy Journal.

Here at UST, where we help our members create reserves to pay unemployment claims, we couldn’t agree more.

But finding those unrestricted dollars to fund a reserve is easier said than done. However, it is a necessary step in managing sustainability – a lesson all too clear to many nonprofits during the recent economic downturn. Ms. Polanco provides some insight into how nonprofits can start building their operating reserve. Here is what we learned:

1. Start with nurturing a culture (all the way up to the Board) that strives to produce revenue and surpluses – not just “breaking even”

2. Next, when creating your budget, insert a line-item for “Current Year Contribution to Reserves” so that it is a clear priority for both management and staff.

3. Finally, there must be a reserve policy that states when reserves should be accessed, and defines “when is it a ‘rainy day’?” or “what constitutes an emergency?” This will provide the purpose of the reserves based on your organization’s own individual mission.

Overall, says Polanco, the board should figure out “how much of its unrestricted net assets to make available for management to use as needed (“Operating Reserve”), how much to set aside for a rainy day (“Board Designated”) and how much to earmark for a specific strategic goal (“Special Purpose”).” A reserve is not something that will appear overnight, but by taking these few steps your nonprofit will be on its way toward being a stronger, more stable organization.

Tip 10: Work with an Unemployment Trust.

Working with an unemployment trust like UST can provide you with a partner that works with you at every stage of the unemployment process. Whether you need help with unemployment claims, appeals, hearings, charge audits, best practices, unemployment reports or client education, a trust can help cut down on costs and administrative burden.

For example, UST helps nonprofits to:

1) Evaluate whether they should opt out of the state unemployment tax system

2) File the paperwork with the state to become a “reimbursing” employer

3) Set up an account reserve just for unemployment costs

4) Provide web reporting with the tools that help you stay abreast of unemployment activity

Unemployment trusts like UST can also offer guidance, preparation and representation at hearings to help you win a claims appeal for improper charges.

By working with the Trust’s claims monitor, especially at the initial level of the claim, an unemployment trust can help you avoid penalties, loss of appeal rights, and it can keep you from being charged for benefits improperly collected. Working with a trust can make the difference in saving your agency thousands of dollars in claims costs each year.

Trusts are best for nonprofits with 10 or more full time employees who have somewhat stable employment. Those with seasonable employees or volatile unemployment claims are best staying in the state unemployment tax system. Read more about your options as a nonprofit.

To find out if your agency would benefit from opting out of the state unemployment tax system and working with UST, request a Savings Evaluation today.

Tip 9: Consider re-employment strategies!

Helping transitioning employees find another job rapidly after a staff reduction, position elimination, or other involuntary, non-misconduct separation can help your nonprofit control the duration of non-protestable unemployment claims.

Because these claims typically result in the longest duration and highest total benefit payout, they can be the most costly for your organization.

An unemployment claims monitor or Trust can help you by providing one-on-one job coaching, e-learning, and other key outplacement elements

Tip 8: Weigh the consequences of partial employment, systematic layoffs, and independent contractors before you use them!

It should be self-evident, but too often employers act impulsively and don’t review all of their options before laying employees off, which ultimately raises their UI tax rates, or their cash on hand if they are a reimbursing employer. Layoffs can cost thousands of dollars in unemployment benefits.

Know when employees are eligible for partial weeks of unemployment, how a systematic layoff will affect your contribution rate, and whether independent contractors are a good idea for your agency.

In the case of layoffs, helping severed employees find jobs benefits the employer and employee.

Independent contractors may file for unemployment, and the employer needs to be able to prove he or she is not an employee of your company.

If you work with an unemployment trust or claims administrator, they can provide you with a listing of state-specific guidance that can highlight how helping severed employees find a new job will benefit both them and your nonprofit, as well as helping you properly document that independent contractors are not an employee.

Tip 7: Appeal benefit collections when it is warranted.

An appeal is your request to the state to assign a hearing officer to review the facts of a particular case because you believe the eligibility rules have not been properly applied. Appeals aren’t something you should do by default though.

Appeal only if you adamantly disagree with a decision allowing the claimant benefits, and be prepared to present the facts and evidence that show why your former employee should not be allowed to collect.

If you work with a claims administrator or unemployment trust, you should be prepared during an appeal to give all documentation and preparation to a hearings representative who will help your organization determine who should be contacted for the hearing, and how their testimony will work with your case.

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Your use of this site and the provision of basic information constitute your consent for UST to use the information supplied.

UST may collect generic information about overall website traffic, and use other analytical information and tools to help us improve our website and provide the best possible information and service. As you browse UST’s website, cookies may also be placed on your computer so that we can better understand what information our visitors are most interested in, and to help direct you to other relevant information. These cookies do not collect personal information such as your name, email, postal address or phone number. To opt out of some of these cookies, click here. If you are a Twitter user, and prefer not to have Twitter ad content tailored to you, learn more here.

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This Privacy Policy and the Terms of Use for our site is subject to change.

Privacy Policy

Privacy Policy and Terms of Use

UST maintains a secure site. This means that information we obtain from you in the process of enrolling is protected and cannot be viewed by others. Information about your agency is provided to our various service providers once you enroll in UST for the purpose of providing you with the best possible service. Your information will never be sold or rented to other entities that are not affiliated with UST. Agencies that are actively enrolled in UST are listed for review by other agencies, UST’s sponsors and potential participants, but no information specific to your agency can be reviewed by anyone not affiliated with UST and not otherwise engaged in providing services to you except as required by law or valid legal process.

Your use of this site and the provision of basic information constitute your consent for UST to use the information supplied.

UST may collect generic information about overall website traffic, and use other analytical information and tools to help us improve our website and provide the best possible information and service. As you browse UST’s website, cookies may also be placed on your computer so that we can better understand what information our visitors are most interested in, and to help direct you to other relevant information. These cookies do not collect personal information such as your name, email, postal address or phone number. To opt out of some of these cookies, click here. If you are a Twitter user, and prefer not to have Twitter ad content tailored to you, learn more here.

Further, our website may contain links to other sites. Anytime you connect to another website, their respective privacy policy will apply and UST is not responsible for the privacy practices of others.

This Privacy Policy and the Terms of Use for our site is subject to change.