What are the Biggest Challenges Facing Non-Profits?
Posted on: April 21, 2015 by Care Providers Insurance
Your non-profit clients have many considerations to make when it comes to figuring out the best way to run their business. Where will their funding come from? What is their organization’s mission statement? Do they have the right Non-Profit Insurance Policy? Amongst these questions though, are not even the biggest challenges that non-profits frequently face. So what are those, exactly?
Advances in Technology
Due to the lack of disposable income, non-profits are rarely able to dedicate huge resources to the development of their website or the management of their social media accounts. Online marketing plays a huge role in raising money and awareness towards a cause, so this type of investment into technology is well worth it. Doing so will also help non-profits be aware of important changes online, such as Google’s recent announcement that mobile-friendliness will now be a required ranking factor.
Caps on Donations
The National Counsel of Nonprofits recently reported that many federal policymakers are looking to decrease the federal debt by reducing or eliminating charitable contribution incentives. Typically, non-profit donations are tax-deductible for the donator, but these caps would change that; making a charitable donation no different than tipping a waiter at a restaurant.
Rules and Regulations
About a year and a half ago, the Financial Accounting Standards Board (FASB) proposed changing the nonprofit reporting standards. These changes would include adding identification of donor-imposed restrictions on funds, requiring that these funds be itemized as separate assets. More recently, the FASB proposed another Accounting Standards Update, which would propose changes to the current net asset classification scheme as well as the required information about an organizations liquidity, financial performance, and cash flows.
The above mentioned challenges are certainly not the only opportunities your non-profit clients face. However, understanding these challenges could help them to run their business more effectively, and potentially reduce their risks.
At Care Providers Insurance Services, we’ve been offering a comprehensive, affordable insurance program for those that care for others for the past 25 years. For more information about our products and services, please contact us today at (855) 790-7379.