Fortunately, the vast majority of nonprofit organizations (NPOs) are like superheroes, using our special powers and abilities to further a noble cause and do good. Unfortunately, there are a handful of NPOs out there who behave more like super villains, taking advantage of trusting donors and volunteers. For the good guys, this means that we have to hold themselves and their organizations to higher standards. NPOs need to take the extra steps to show the world that they will actually deliver on their promise and follow up on every pledge with complete transparency throughout the process. While there are numerous laws, statutes and guidelines in place for every NPO to follow, there are some good processes to implement to show goodwill and to promote transparency across the board. Let’s take a closer look.
- “Go ahead. Check out my NPO,” using the IRS’s Tax Exempt Organization Search
While the IRS no longer publishes, or maintains a list of registered nonprofits that are eligible to receive tax-deductible charitable contributions, you can still help to promote transparency by referring potential donors, volunteers, or anyone who might be interested or even just curious about your NPO, to the IRS’s handy online search tool: Tax Exempt Organization Search tool. With a few clicks, anyone can easily check and verify certain information about its federal tax status and filings. Specifically, with this online search tool, you can…
-
Confirm that an organization is eligible to receive tax-deductible charitable contributions (Publication 78 data). Users may rely on this list in determining deductibility of their contributions.
-
Check to see if an organization has had its tax-exempt status revoked.
-
Check to see if an organization has filed Form 990-N, usually required of those organizations whose annual gross receipts are $50,000.00 or less.
- “Are you down with B.B.B.? Yeah, you know me!”
A seal from the Better Business Bureau (BBB)? Yes, you want that because it’s not just for businesses anymore. The Wise Giving Alliance, an association of charities formed by a merger of the National Charities Information Bureau (NCIB), the BBB and its Philanthropic Advisory Service (PAS), have provided a way for anyone to check up on the behavior and history of an NPO, just as they would for a regular business. Ideally, your NPO meets and exceeds the BBB’s Standards of Charity Accountability. If it does, your organization can apply for the Bureau’s accredited charity seal. Being able to display this seal wherever your organization operates goes a long way towards showing credibility, and takes your cause a step further toward promoting transparency.
- “Got your 990?”
No, 990 is not some mythical credit score that King Arthur pulled from the stone ages years ago. Your NPOs’ 990 tax return form must be available for anyone inquiring and wanting to see it. It’s always good to have a copy ready to show at your main office, but why not have it posted on your website as well? That’s taking transparency to a new level.
While your posting your 990 for all to view, do a little NPO extra credit by ensuring that your site has all of your basic contact information as well. This includes all current…
-
Phone numbers,
-
Fax numbers,
-
Board of Directors, and
-
Senior Staff.
This simple publication lets those who may be inquiring about your NPO know that there are real (and accessible) people behind your organization’s name. Doing this helps to lower the veil of skepticism by showing others that you’re more than just a website and a P.O. Box address.
- Streamline Your Operations for Better Data Transparency
If your NPO is having difficulty producing timely and reliable reports, give yourself a boost by switching to a streamlined, compliant accounting solution like Gravity Software® (Gravity). Gravity delivers efficiency, data transparency and more. Nonprofits can find their second wind, meet new requirements and achieve the same goals when upgrading to Gravity because they’re able to accomplish more in less time.
With ease of data accessibility and intuitive dashboard drill down capabilities,
-
financial reports are generated,
-
expenses are tracked,
-
audit trails are illuminated, and
-
disclosures are clear
- so transparency and efficiency are never sacrificed.
Gravity’s goal is to fill the gap between entry level accounting software like QuickBooks and expensive enterprise applications like Sage Intacct. Learn how you can apply this exciting technology to your business. Gravity offers special pricing in conjunction with Microsoft, why? Because we care. With the proper accounting solution for your NPO, you can focus on what matters to you most, your mission. Learn more and schedule your online demo today! My business is connected. Is yours?
Gravity Software
Better. Smarter. Accounting.
