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Financial Solutions for Nonprofit Organizations
http://www.michronicleonline.com/articlelive/articles/1843/1/Financial-Solutions-for-Nonprofit-Organizations/Page1.html
Andrea Morrow, CPA
 
By Andrea Morrow, CPA
Published on 10/18/2007
 
Articles about giving and solicitations to give typically bombard the public around the holiday season. Probably because charitable organizations and others know that most people are predisposed toward giving at that time. Since we have already been programmed to spend money and give gifts, many charities hope they too will be included on gift lists while the mood is generous.

The joy of giving
Articles about giving and solicitations to give typically bombard the public around the holiday season. Probably because charitable organizations and others know that most people are predisposed toward giving at that time. Since we have already been programmed to spend money and give gifts, many charities hope they too will be included on gift lists while the mood is generous.

However, many nonprofit organizations actually end their operating year during the summer and early fall instead of Dec. 31, unlike many for- profit organizations. In some instances, this allows them to save on audit fees. Since audit firms are swamped after Dec. 31, completing audits and tax returns for corporations seeking profits, the fees tend to be higher and the turnaround may take longer. The summer and early fall months tend to be slower for these firms; therefore, nonprofit organizations are usually able to get more time and attention for less money. Or the nonprofit may try to coincide their year-end with that of their main funding source to simplify recordkeeping, although as accounting software has become more flexible, this has not been as big an issue.

Nevertheless, when a nonprofit organization reaches the end of its fiscal year, there is pressure to break even at a minimum (i.e., revenues equal expenses) or show forth a slight profit (revenues exceed expenses). Even greater is the desire to meet their cash flow needs. Grants may be depleted earlier than anticipated and unknown expenses may have surfaced.

So don’t wait until Thanksgiving or even Christmas to think about giving of your time and talents to a nonprofit organization in your area. The gift of giving is accompanied by a special benefit. No, not a house or car, etc. True giving brings the gift of joy to the giver. It makes you feel good on the inside. True giving is unconditional. Gifts given with an expectation of a return are weighty, stressful. People get angry when they expect something and receive nothing in return. The concept of debt surfaces, the feeling that they am owed something for their benevolence.

There is the expectation of equality, whether the gift received in return is equal to or better than the one given. If the gift is deemed of lesser value, here comes that angry feeling again, if it is of much higher value, people worry that their gift was inadequate. There is the issue of time: when will I receive my return gift? There is the issue of taste: do you even like the gift received in return? There is the issue of celebrity:they didn’t advertise my gift or left my name off the donor list. All of this conditional giving — sound joyful to you?

Some have never experienced the gift of joy because they have never truly given. Small wonder when we look at all the stress involved in giving to receive.

Today, there are many organizations right in your community that could use a helping hand, and you may never see the one you have helped, or receive a personal thank you. Don’t worry that your donation may be too small. Boys Town created quite an empire by asking for $1 donations. Pool your resources. If you have $20, get together with ten more friends and send $200. Clean out that closet. Don’t kid yourself, you are not going to wear those clothes and someone else could. Don’t give the damaged ones, throw them out. It won’t make you feel good to give someone damaged clothes you would not wear. Give an hour of your time. Be a big spender and give two hours. Ask five friends to go with you.

Nonprofits are overloaded with volunteers during the holidays and can hardly find any help the rest of the year. Give something away. Don’t wait until the holidays when you’re trying to ease your conscience about spending too much. Try the test of true giving and I guarantee you will receive something that money cannot buy. Can you use a little joy in your life? I know I can.

Andrea Morrow is president of Nonprofit Resource Group, Inc., a consulting firm specializing in providing accounting and organizational management solutions to nonprofit organizations. For consulting or board training services, contact Andrea Morrow by e-mail at NPRG@att.net.