Many nonprofits are poised to grow, but recognize risks
More than three-quarters of nonprofits are at least “somewhat likely” to pursue growth through expanded fundraising efforts during the next 12 to 18 months, according to a recent study. Nonprofit Finance Study: Managing Growth, conducted by nonprofit software firm Abila, also found that 84% of the financial professional respondents expect to seek new grant funding opportunities. Nonprofits are at least “somewhat likely” to pursue partnerships with other organizations (72%), provide new services that will bring in new revenue (69%) and seek corporate sponsorships (67%).
The results don’t only highlight a desire to grow among nonprofits. 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 somewhat or much harder.
If your organization is poised for growth, the report suggests a number of risk management activities. Among them: creating contingency plans for future funding uncertainty, maintaining compliance with funding requirements, assessing internal controls and training employees.
Your 990-EZ filings get easier
One out of three nonprofits that file paper Forms 990-EZ make a mistake. That’s according to the IRS, which is attempting to reduce errors with an updated form. The form has 29 “help” icons to help small and midsize nonprofits 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. Once organizations complete their forms, they can print them for mailing to the IRS. SKR+CO 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. And some nonprofits have found particularly innovative approaches to compound the efforts they make and donations they receive. The Los Angeles Times reports, for example, 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 — largely from young, male first-time donors — have prompted more nonprofits to reach out to the gaming community to build alliances.