Simple Password Storage Can Save You Major Headaches
One day I walked into an office and saw a bunch of small post it notes everywhere. When I looked closer, I saw they were username and passwords to a bunch of different websites. 😱
I commented that it would be a good idea to put those login credentials in a safe place and the response was “I’m good with it like this”.
Many people have passwords on paper, post its, and other documents that could be easily stolen or destroyed, putting the organization’s security and assets at risk. 🫢
There is a simple solution to this: Start using a password manager!! 💻
➡️There are many of them out there such as Last Pass, Nordpass, 1Password, and many more. They are generally a few dollars a month and you will have a place to keep all of your password.
Having a password manager will:
☑️Save time as you will not have to go searching for login information
☑️Secure your vulnerable information
☑️Secure other information such as notes, PIN numbers, and other sensitive documents
☑️Share passwords securely
☑️Generate strong passwords for you
☑️Many password managers also have an app available
Taking the simple step of investing in a password manager will save you time and ensure your assets and access to accounts are secure.
What You Should Ask for Funding
If you are applying for funding for the first time, you may be wondering what is the first project or service you should ask funding for first. A good place to start is asking for funding for existing services.
With existing services, you have experience, a track record, data, outcomes and can talk confidently about those services when the funder talks with you about it. The requested funding can be used to cover existing expenses or expansion of existing services.
Once you’ve established a relationship with the funder, and the relationship is going well and trust has been established, you can then request either an increase in funding or request funding for a new project.
Often, funders will award first time recipients a lower amount, and then increase funding the following year once the awardee has shown he/she can be trusted with awarded funds.
Difference Between an Accountant & CFO and Why it Matters
⚾ An accountant is someone who records financial transactions and creates financial statements. Think of an accountant as the person who keeps the score at a baseball game.
🔭 A CFO (Chief Financial Officer) is someone who is forward looking and focuses on planning. Think of a CFO as the person who is on this ship looking ahead with a telescope.
The main difference between the two is that one is forward looking and the other looks behind. Both are very important as part of any organization.
However, most organizations have an accountant, but not a CFO. Or the CEO acts as the CFO, which is perfectly fine. Other times, organizations try and make the accountant into the CFO, which doesn’t always work, especially if the skill set is not there.
🚢 Without the CFO, without some type of financial planning in place, you are like a ship being drifted by the sea and going nowhere in particular.
I believe every organization should have a CFO or CFO function.
Not everyone can afford a CFO, or they are not large enough to have one.
If you do not have a CFO, here are some things you can start doing to get yourself going in the right direction:
➡️ Create a budget. This will get you thinking about the financial future.
➡️ List 3 organizational goals for the next 12 months. Once those goals are listed, think about how it will affect your organization financially.
➡️ Talk with an advisor. He/She can provide some insight on what you should focus on.
Involving Staff in Reducing Organization Risk
As I’ve spoken about in previous posts, it is important to implement internal controls. Internal controls are processes in procedures put in place to prevent and deter fraud, errors, and waste.
Frontline staff know firsthand what is going on in the day-to-day operations of an organization. They see where mistakes can be made, how processes can be improved, and potentially fraudulent activity.
Sometimes when management and executives are creating internal controls, it is a strong possibility they may miss important details because they are far removed from everyday activity. What’s worse is they may implement policies in an organization and that policy doesn’t address the root of the potential risk that could incur.
So, when discussing the creation of internal controls, involve at least 1 or 2 staff in the process to gain a full understanding of what is going on in the organization. Then, you can identify more risks and address them properly.
Why I Begin Walking Throughout the Day
When I began working from home, I noticed I was not moving as much. Some days I would look down at my FitBit and notice I had taken less than 3,000 steps. I had to face the fact that I was becoming more and more sedentary with each passing day, and this was not healthy.
So, I made a commitment to get 10,000 steps each day. I worked my way up to this. I started with 6,000 per day, then 7,500, and then 10,000.
This required me to make some changes to my workdays. To achieve 10,000 steps, I began:
🚶♀️➡️walking in the morning
🚶♀️➡️taking breaks throughout the day
🚶♀️➡️purchased a walking pad
🚶♀️➡️following walking videos on YouTube
As a result, I noticed the following:
🔶Clearer mind since I was giving myself breaks
🔶Less strain on my eyes from getting away from the computer
🔶More energy
🔶Increased problem-solving skills
🔶Increased physical agility
If you are someone who sits most of the day and gets little steps, I would encourage you to begin walking and getting more steps in each day to give your body the movement it needs.
Building Operational Reserves for your Non-Profit
The 2019 pandemic caught everybody by surprise. For many, it was a period of struggle, isolation, loss, and chaos. Many businesses were hit hard and even had to close. Others were able to bounce back, and some are still struggling. 😞
One thing we can learn from this is that it is best to be prepared. For non-profit organizations, this means having operating reserves. Think of this as a rainy-day fund or an emergency fund. Having this will help alleviate some stress when the unexpected happens.
These extra funds can come from a variety of sources. They can come from
▶️Donations
▶️Surpluses
▶️Unrestricted Funds
▶️Selling of Assets
If you are a non-profit and do not have operational reserves, the first step is talking with your Board of Directors about building one and putting a plan in place to do so.
While things are better now, you can use this period to prepare. You want to dig your well before you’re thirsty, not when you get dehydrated.
Be Aware of Vocal Cloning
As AI (artificial intelligence) becomes more advanced, there are both many benefits that come with it such as finding a quick answer through Alexi, make automated processes more efficient, and reduced human errors.
However, dangers come with AI as well. One in particular is Vocal Cloning.
🗣️This is a technology that creates a digital copy of a person’s voice. AI can replicate a person’s voice, clone it, and use it for other purposes.
Unfortunately, this can be used for fraudulent purposes. Here some negative consequences to vocal cloning:
📣A scammer could gain access to the voice of an Executive Director or CEO and trick employees into providing sensitive information.
📣Lead to identity theft.
📣Erode public trust and reputation.
What can you do?
📣Make employees aware of vocal cloning. Communicate the risks involved and how it could damage the organization.
📣Add a Vocal Cloning to your security policies. Regularly review this policies along with other policies.
📣Create an environment in which staff are cautious and encouraged to ask questions, especially for odd or unusual request.
Technology can be a wonderful thing, but unfortunately there are bad players that take advantage of this and use it for evil.
Do This before Filling Out a Grant Application
So, you’ve found the perfect grant application for your organization. YEA!!! But before you invest time into filling it out, you should do these things first.
✅Make sure you’re eligible. I know it seems simple, but it’s best to double check.
✅Do you have enough time to complete the application? Find out when the grant application is due. Some funding applications are short in nature, but others take hours to complete. This is especially true of Federal grants.
✅Does the award meet your funding need? If you need $100,000 and the funder only awards $1,000, then it may not be worth your time completing the application.
✅Review the 990-tax return. This will show you who the funder has awarded funding to already. You can see if the agencies they’ve funded are like yours to determine the likelihood of them selecting your organization for an award.
✅Don’t try to force your services to line up with the funder’s expectation. If you help the homeless community and the funder awards money for stray animals, it is not worth your time.
The most important part of grant writing is ensuring you are applying for and investing time into the right grant applications in which you are most likely to be awarded.
Why Only Cutting Costs to Increase Your Bottom Line is a Bad Idea
When looking for ways to increase net income or get out of the red, the first thing many businesses and organizations do are look for ways to cut costs. This is not a bad thing, only many organizations spend most or all their efforts on cutting costs.
In addition to cutting costs, organizations should also spend time looking for ways to increase revenue. You can only cut so many expenses, but this is not so with increasing revenue.
Increasing revenue is easier said than done. It involves creativity, game planning, additional hours of work, financial investment, and doing something different. For some, it can be a scary thing. But this gives you the opportunity to grow and expand your organization.
Constantly cutting costs without focusing on increasing revenue will lead to a contraction in your organization. Many organizations cut administrative staff, which leads to overworked and dissatisfied employees that remain.
One of the best times to focus on increasing revenue is when you have a healthy bottom line. Then, you will not be so pressured and stressed to do something about your situation.
Labor Day
Labor Day grew out of labor activists who wanted a fair, just and equitable workplace. The first was celebrated in New York in 1882 by having a Labor Day parade. It eventually became a nationwide holiday to honor the American Labor Movement.
Many Americans go to work hard 8 plus hours everyday serving customers, clients, coworkers, and employers. Without dedicated and faithful workers, we wouldn’t have the businesses and organizations we see today.
In our society, we often go long periods of time without taking any type of break or rest. In fact, it is considered admirable to work a substantial number of hours per week, and to do it week over week.
The bible teaches to that we should take a Sabbath day to rest. This gives our body and mind a chance to recover and rejuvenate.
So on this Labor Day, make sure you take some time to rest. This may be barbequing, being with friends, or binging Netflix 😊.
The Finance Committee…… Should Your Nonprofit Have One?
The primary purpose of a Finance Committee is to oversee the financial functions of a nonprofit. It is a dedicated group that focuses on all things financials. It can include board members and even individuals outside the organization if they possess the needed skill set.
Do all nonprofits need a Finance Committee? 🤔 Not necessarily. If you are a smaller nonprofit, you probably do not, but a larger one may find one useful so that all the financial responsibility is not placed on one person.
Here are some of the responsibilities of a finance committee:
🪙Create and review yearly budgets with Board Members
🪙Monitor internal controls and create financial policies when needed
🪙Ensure financial statements are accurate and completed in a timely manner
🪙Contact person for financial statement audits
🪙Oversee investment activities
🪙Anticipating any financial problems
Already have a finance committee? Are they overseeing all the financial functions in your nonprofit? Do adjustments need to be made? If you don’t have a finance committee, think about what your nonprofit needs in terms of finances and then determine if you should form one or not.
5 Types of Funding Foundations
Funding Foundations can be small and very large. According to Candid, as of 2021, there were 127K Foundations with $1.2 Trillion in assets. That is a lot of money! In order to gain access to this funding, it is best if you understand the different types of Foundations.
➡️Family Foundations – Generally have very focused giving patterns based on the donor or current family. These are generally very small.
➡️Independent Private Foundations – This type of foundation is like the family foundation, but generally has a small staff. It may have started as a family foundation but is no longer controlled by them.
➡️Federated Foundations – These foundations were created to benefit the community. They collect donations from individuals and businesses and use those funds to support nonprofit organizations. One of the most popular federated foundations is the United Way.
➡️Corporate Foundations – These foundations are funded by the corporation themselves. They operate like other foundations but tend to fund projects to the corporation’s own goals.
➡️Community Foundations – These foundations are found in every state of the USA. These contain funds from donors who do not wish to set up foundations in their own name but want their funds to benefit the community. If you want to know if there is a community fund in your area, your local library would be the best place to start or visit The Grantsmanship Center.
The 3 Ingredients for Fraud
It is often believed that people who work for a non-profit organization would never do any intentional wrongdoing because the organization is helping people. This could not be further from the truth. Given the right circumstances, people will fall in the temptation of committing fraud. Here are 3 ingredients for fraud
1️⃣ Opportunity – Refers to circumstances which allow fraud to occur. It is generally the result of poor internal controls such as lack of separation of duties, no written policies, poor oversight, and unethical behavior from the top. This is the only ingredient organizations have control over.
2️⃣ Incentive/Motivation – Pressure to commit fraud. This generally stems from a personal reason such as an unexpected bill, a partner job loss, or wanting nice things to keep up appearances.
3️⃣ Rationalization – Represents the person justification of fraud. The person generally makes statements such as “They are underpaying me”, “Nobody will ever know it’s missing” or “A lot of money is wasted anyway”.
Being aware of the above will put you in a position to prevent fraud from occurring in your organization and be on the lookout for such behavior. Many people will not commit fraud, but it is the small number of people who will and generally in a big way.
Choose Your Hard……
Being fit is hard
Being overweight is hard
Being in debt is hard
Being fiscally responsible is hard
Starting a business is hard
Being an employee is hard
Forgiving yourself is hard
Living with guilt is hard
Asking for help is hard
Going it alone is hard
Eating healthy is hard
Having health problems is hard
Being proactive is hard
Being reactive is hard
Taking risks is hard
Regretting inaction is hard
Choose your hard or your hard will choose you!
What Happens when a Non-Profit Fails to File the Yearly 990 Tax Return
The form 990 tax return is required to be filed every year. It is an informational return the IRS uses to obtain the details of the activity incurred for the year. The 990 return is a public document and is used by donors and funders so they can make informed decisions before sending money.
The below lists a few consequences when a non-profit does not file the 990 return:
💠Penalties & Fines – The IRS could charge penalties starting at $20 per day, up to a maximum of $10,500 (or 5% of gross receipts) whatever is less. For larger organizations, the maximum fee is $52,000… ouch! 😖
💠Lose Tax-Exempt Status – Failure to file the 990 three years in a row could mean losing your tax-exempt status. If lost, you would then need to reapply for the status all over again, which takes a lot of time and could be costly.
💠Credibility Issues – Some funders and donors want to or require viewing of your Form 990 before sending money. Failure to provide this information creates trust issues and loss of funding opportunities.
To avoid the above, it is important for you to find a tax accountant, if you’ve not already done so, and file your tax returns. If you are going to be late, have your tax accountant file an extension and file your taxes then.
Common Misconceptions About Using a Grant Writer
I met with a non-profit who inquired about applying for grants. I explained the grant writing process to him.
🗣️ His response “Wait, I have to be involved in this process? Can’t I tell you what I want and then you take care of everything else? I’m busy, I do not have time to be involved.”
🗣️ My response “Yes, I am going to need your help to successfully complete the grant writing process.”
Here are some common misconceptions about getting a grant writer
1. Grant writers can guarantee funding
✅ Fact: Grant writers can substantially increase your odds of securing funding, but can never guarantee it.
2. Grant writers can handle the whole grant writing process alone
✅ Fact: Grant writers need the help of staff in the organization to complete the grant application process
3. Grant writers can write one proposal and send it to multiple funders
✅ Fact: Each funder has its own set of requirements and guidelines the funded must adhere to.
4. Grant writers should get paid on commissions
✅ Fact: This is viewed as unethical because it causes conflict of interests. Grant writers are generally paid a flat fee or hourly fee.
5. As a nonprofit leader, I don’t need to know anything about grants
✅ Fact: If your organization is applying for grants, you need to have a basic understanding of grants so you know what you are getting involved in and what is expected of your nonprofit.
3 Simple Things You Can Do to Increase Odds of Winning Grants
Sometimes the simple things are overlooked when achieving goals, and that includes being awarded grants. Here are 3 simple things you can do to increase your odds of winning grants.
1️⃣ Get clear on what needs funded. If you do not know what needs funding, then do not waste your time looking for grants. You’re going to be wasting your time and spinning your wheels.
2️⃣ Set aside time to work on grants. Applying for grants takes time and energy. It is best to schedule time to do this so other activities don’t get in the way.
3️⃣ Have someone review your grant application before submission. When working on grant applications, we can become “blind” to it because we are in the weeds of the process. Having a fresh set of eyes review the application before submission will help identify errors.
Taking these steps will move you closer to receiving the grant funding you need to carry out your mission. 🙂
Be Sure to Double Check Your Bills – You Might be Paying for Something That Isn’t Yours
Scammers have been around since the beginning of time. Technology has only made it easier for these scammers to commit fraud. 😭
During my time as an accountant, I have received bills out of nowhere, requesting that they be paid immediately. This is especially true with medium to large organizations. Their hope is that the Accounts Payable clerk (or whoever is paying the bills) blindly pays the bill, resulting in a payday for the scammers. ☹️
Unfortunately, some of these bills get paid to the scammer. Maybe the AP clerk isn’t paying attention, or an Executive Director is paying bills while exhausted and doesn’t notice it.
How can you avoid an error like this?
✅ Have a system in place in which someone must sign off on all bills before they get paid. That way, bills have at least two sets of eyes on them. The person receiving the bill and the person approving it. 👀
Thank You to All Fallen Veterans
As Memorial Day draws near, I want to formally thank all the fallen soldiers who bravely fought for the United States. We are able to enjoy the freedoms we have today because of the brave men and women who sacrificed their own lives. 🙏
While many (including myself admittedly) will view this as a day off work, I believe it is important to take a moment to reflect on the day and honor those who gave the ultimate price.
Remember, freedom isn’t free. Although the United States may have its problems, we enjoy many freedoms that others around the world could only dream of.
Is Quickbooks Desktop Going Away in 2024?
If you are a Quickbooks Desktop user, you will still have access to your Quickbooks account.
☝️However, effective August 1st, 2024, Quickbooks will stop selling the desktop version to new subscribers.
Earlier this year, Quickbooks discontinued several services for Quickbooks Desktop 2021; including payroll, payments, online backups, etc.
Although you can still use your Quickbooks Desktop today, the writing is on the wall…. at some point, Quickbooks will discontinue its Desktop version altogether in the near future.
If you are still using the desktop version, my recommendation is that you start looking at transitioning to Quickbooks Online. Review what you are using currently in the Desktop version and select the Quickbooks Online subscription that is right for you.
This may be a tough transition for you if you’ve used the desktop version for years, but remember, change can be a good thing too. 😌
#nonprofit #quickbooks #quickbooksdesktop