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Nonprofits inherently feel a squeeze on resources. Most funds tend to be directed toward advancing your external cause rather than to supporting administration. Getting more than core objectives accomplished can be a real struggle—and doing so within budget, nearly impossible. 

Nonprofit managers and administrators are accountable for the financial activities of the organization to benefactors, boards of directors, and often their community. And grant applications or other funding pursuits must demonstrate your organization’s accountability, sound management, and reliable resources.

PSK satisfies your assurance needs and financial reporting requirements for boards of directors. We also perform accounting, bookkeeping, and audit procedures that help bring to fruition a stable, sustainable operating plan. By having our team scrutinize your accounting processes and records, everyone involved can gain confidence in your financial security.

Charities, trade associations, churches, national sororities, and private schools often rely on volunteer efforts to coordinate programs and events. Many volunteers handle cash regularly, but few organizations have proper controls in place to assure cash and other assets are safeguarded.

Fraud audits can also be performed to detect a known or suspected fraud occurrence—or just reduce the opportunity for it. As much as we hate to mention it, groups with an altruistic mission tend to trust volunteers too readily, and some people actually prey on that.

Maintaining 501(c)(3) tax exempt status is a key concern. Our team prepares your Forms 990 and other reports. We also develop internal control systems, record keeping procedures, statistical benchmarking reports, and help with annual projects such as budget preparation and analysis.

If your needs don’t require, or your budget prevents employing a full-time controller or CFO, PSK provides interim or part-time financial oversight through our rent-a-controller services.

Call on the CPA firm that knows how to help you further your organization’s cause.
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Are You a Fortress or a Sponge?
7/26/2010 10:00:50 PM About.com Nonprofit Charitable Orgs

In this case, it's best to be a sponge. That's because socially networked nonprofits operate like sponges...not like SpongeBob or a kitchen sponge...but like a sea sponge, transparent and open, yet grounded.

In their new book, The Networked Nonprofit: Connecting With Social Media to Drive Social Change, Beth Kanter and Allison Fine categorize nonprofits into three types:

  • Fortresses that build their walls high, man the parapets to keep out intruders, and even build moats to discourage the curious.
  • Transactional organizations have their eye constantly on how many...visits, donations, number of volunteers.
  • Transparents are like deep sea sponges, anchored but open, clear about what they do best, averse to complexity, trusting of others, relationship building.

I have to admit that I've mostly worked in the fortress variety and even helped reinforce those barrier walls in an effort to "control" interactions with what often looked like a dangerous world. But, I'm recovering, as I hope you are, and learning to use the new tools of social networking to open those gates...More...

Why Monthly Giving Works or Doesn't: A Tale of Two Monthly Donations
7/25/2010 10:00:46 PM About.com Nonprofit Charitable Orgs

My good friend, and fundraising expert, Pamela Grow, recently wrote about monthly giving programs and used Best Friends, one of the most loved animal welfare organizations in the country, as an example.

I happen to be a supporter of Best Friends and donate monthly. It's not a big amount, but I'm sure when Best Friends adds up all of their small monthly donations, it comes out to be quite a lot.

I began thinking about why I'm so happy with my automatic giving program with Best Friends. Actually, I am giving monthly to another organization as well. And I'm not happy about it. What makes the difference between the two?

I won't mention the other organization, but I was not enthusiastic about signing up when I got a phone call from a relative that was working the phones for this unnamed group. I said yes, really against my better judgment. I've regretted it ever since. So this donation is coming out of my checking account every month and pretty soon I'm going to screw up my courage and cancel it.

Why am I unhappy? I've never heard a word from that organization since I signed up over the phone. Not a thank you, an email, a newsletter...Nada!

Why haven't I canceled earlier? It isn't that easy. I'm not sure now how to reach the organization, and I'm rather embarrassed to call my relative and ask for more information. This is how automatic payments, whether they are a contribution or a recurring subscription or other kind of purchase, get a bad name. It is not always transparent and, since we are all convenience addicted, it takes considerable effort and dissatisfaction to intervene. That may be why Americans are rather adverse to signing up for automatic payments. They have probably had a bad experience with them.

So, why am I so satisfied with Best Friends? For starters, I wasn't coerced into donating. A friend of mine mentioned that she was checking out some local potential adoptive parents of a dog from Best Friends. I asked how that worked and what is Best Friends. She said she had been a supporter of the organization for a long time, and they asked her to do a home visit in our town for this potential adoption. She was thrilled to do it.

Curious, I checked out Best Friends online. I must have spent an hour or two entranced with the website and all the stories of animals that donors can sponsor. By the next day I had decided I wanted to donate to a special dog that had been rescued by the organization, in honor of my late dog, Lucy. So I signed up, agreeing to allow Best Friends to deduct a small amount monthly through my credit card.

I was brand new to Best Friends, but because my dear friend was a supporter, I felt comfortable donating. The website is appealing, and I was donating to a particular animal. I do know that the method works...it's called "singularity" by Dan Ariely, author of The Upside of Irrationality: The Unexpected Benefits of Defying Logic at Work and at Home. I recently attended a webinar at NetworkforGood that featured Ariely. The fact is that we are more generous when we can empathize with one particular person, or animal in this case, than if we just hear abstract numbers or even are presented with a small number of recipients.

But besides the singularity angle, Best Friends came through in a number of other ways. I got an email thank you and a mailed thank you. I receive an email from Best Friends at least once a week, usually with a neat story about their work (like the Gulf Oil Spill animals that are showing up in shelters and need adopters). They send an email newsletter frequently as well. You can see an example here.

But, I also receive a beautiful magazine every couple of months that I always sit down and devour right away. Besides that, when I tweeted to Pamela Grow about her blog post about the organization, saying that I was a fan, Best Friends tweeted me to say again how grateful they are for my support. They are listening to their supporters through social media.

I have never considered canceling my monthly donation to Best Friends. In fact, I'll likely increase it They really have me, hook, line and sinker.

If your organization is thinking about a monthly giving program for your donors, make sure you can follow through the way Best Friends does. Otherwise you're going to have some unhappy people who will start canceling as soon as they can figure out how.

Remember:

  • Singularity
  • Thank you letters
  • Frequent communications to keep your organization fresh in your donors' minds.

Is there an organization you think is doing a particularly fine job with monthly donations? Let me know in the comments.

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