An Executive Director’s Guide to Financial Leadership

AN NPQ CLASSIC. There is a world of difference between financial management and financial leadership, and refocusing your approach from fiscal management to fiscal sustainability and agility gets you there. Outlined in this expert guide are such essential steps as transforming your annual budget analysis, deciding whether or not income diversification is the way to go, achieving a robust reserve, and equipping your board for effective financial governance.

Does My Nonprofit Need to Pay Tax? Understanding Unrelated Business Income Tax

While nonprofits are, generally, tax-exempt, they must pay income tax when operating outside the scope of their exempt purposes. But determining what are an organization’s exempt purposes is not always as clear as one might think, and distinguishing between related and unrelated activities can be tricky. There are clear rules, as well as several exceptions to those rules, that can help guide an organization in the right direction. But, as Kupfer underscores, while this article outlines key concepts of UBIT, “specific advice should always be sought from a competent tax counsel.”

Philanthropic Equity: Promising Early Returns

Practitioners agree that regulatory support is essential to Philanthropic Equity’s survival, but even if common standards and IRS guidance are put into play, PE is not for everyone. As the author explains, “Philanthropic Equity is about making sizable bets on plans and teams whose success is uncertain.” But he continues: “If only 1 percent of the funds currently flowing to U.S. nonprofit organizations were in the form of Philanthropic Equity, it would be sufficient to radically alter the growth trajectories of many of the highest-potential organizations in the social sector.” What do you think?

Dr. Conflict

When a new employee asks for help handling the office gossip, Dr. Conflict advises first against upping the conflict by putting said gossip on the defensive, and second to check out the office culture before leaping into the fray. Perhaps surprising to some, he also reminds the frustrated employee that while one should not pay attention to every detail of what goes on in the workplace, it is never a good idea to stay disconnected, either, as “today’s gossip may be tomorrow’s fact.”

Cautionary Tales . . . Nonprofit Style

Why do so many of us insist upon learning from our own mistakes rather than those of other poor souls? Here we give you one more chance. Take heed of these tales of nonprofit organizations—large and small—that wander down the wrong path and embarrass themselves.