Whether you’re starting up a not-for-profit organization or your nonprofit has existed for years, you may have questions about insurance. For starters: What kind do you need? How much? Are you required by your state or by grantmakers to carry certain coverage?

Much depends on your organization’s size, scope, and programming. But your goal should be to carry what’s required to meet any regulatory or funding mandates and to address legitimate risks. Although there are many types of insurance available to nonprofits, it’s unlikely you need all of them.

If your not-for-profit receives significant federal funds, it may be subject to the Office of Management and Budget’s Administrative Requirements, Cost Principles, and Audit Requirements (Uniform Guidance). And if your nonprofit spends $750,000 or more in federal awards in a fiscal year, it probably faces a single audit — an annual financial statement audit and examination of your organization’s compliance with federal grant fund requirements. So it’s important to ensure you’re complying with the rules for government grants and contracts.

Many not-for-profit leaders are nervously watching macroeconomic signs — inflation, rising interest rates, and the possibility of recession — to predict how their organization will fare in the coming months and years. But threats to your nonprofit’s well-being may be closer than you think. Whether you’re an executive or board member, make sure you’re looking out for these four internal warning signs:

Not-for-profit organizations are compelled by federal and state wage-and-hours laws to perform a certain amount of time tracking. Funders may also stipulate timekeeping practices. Fortunately, timekeeping software can make the job a lot easier for staffers and managers. Here’s how to ensure your nonprofit complies.

Despite recent accusations that the IRS targets certain types of tax-exempt organizations for audit, not-for-profit audits generally are rare. That’s because most nonprofits owe no or very little tax. However, as the IRS receives funding as part of the Inflation Reduction Act, it’s expected to hire new agents for all divisions, including the Tax Exempt and Government Entities Division. So nonprofit compliance checks and audits potentially could become more common. What should you do if your nonprofit hears from the IRS?

To control your not-for-profit’s expenses and improve operating efficiency, you need to keep an eye on the numbers. This should come as no surprise. But which measures are important? Which ratios can help you identify how much currently goes toward programming (as opposed to administration), how much you spend on fundraising (compared to funds raised), and how much your nonprofit needs in operating reserves? Key measures In general, these four key ratios should be regularly monitored:

According to the Association of Certified Fraud Examiners (ACFE), not-for-profit organizations make up 9% of all defrauded organizations. Such attacks — and losses — can be enough to destroy a nonprofit. Although the best defense against fraud is a strong offense in the form of internal controls, you should also have a recovery plan should fraud occur. Here are some best practices to consider.

Whether your not-for-profit is holding an in-person or online auction to raise funds, you need to be careful to adhere to tax requirements. For example, you should provide written acknowledgments (including good faith estimates of any goods or services provided in return for contributions) to donors of items valued at $250 or more. Here’s an overview of auction-related tax issues — including those your donors should be made aware of.

Data analytics is the science of collecting and analyzing sets of data to develop useful insights, connections, and patterns that can lead to better-informed decision-making. It can be enormously useful for not-for-profits. For example, data-driven nonprofit Community Solutions partners with local charities to help them reduce, and even end, homelessness in their communities. Among the tools, it uses are databases that account for individuals experiencing homelessness and their history, health, and housing needs, as well as real-time data on available housing. But what about nonprofits that don’t have the expertise to pursue tech-driven solutions? If this sounds like your organization, take heart: Using data analytics is easier than you might think. And deploying it successfully can save your nonprofit time and effort over the long term.

The arrest last year of a high-profile cryptocurrency exchange founder for fraud not only hurt the crypto business but also cast a shadow on “effective altruism.” This philosophy employs evidence and statistics to determine strategic ways to benefit others — and the alleged fraudster is a vocal proponent. He has claimed that he earned as much money as possible to give most of it to charity. Is this a case of one bad apple spoiling what’s otherwise a sound approach to giving? After all, effective altruism is particularly popular among tech millionaires and billionaires. Or should your not-for-profit be wary of philanthropists who espouse it?

Unless 501(c)(3) organizations prove they’re publicly supported, the IRS assumes they’re private foundations. The distinction is important because publicly supported charities enjoy higher tax-deductible donation limits and generally are exempt from excise taxes and related penalties. The tax code recognizes several types of publicly supported organizations, but most 501(c)(3) charities fall into one of two categories. The first, Sec. 509(a)(1) organizations, primarily rely on donations from the general public, governmental units, and other public charities. The second category, Sec. 509(a)(2) organizations, has significant program revenue. The IRS has established tests for each type of organization. If your nonprofit doesn’t pass the 509(a)(1) test, it may qualify under Sec. 509(a)(2).

When Accounting and Development teams don’t work well together, the situation can lead to more than employee hostility and conflict. It can affect the not-for-profit’s financial statements and lead to the forfeiture of grant funds. To ensure the staffers in your Accounting and Development departments communicate fluidly, you may need to revise certain procedures and actively encourage collaboration.

Giving circles — generally small groups of people who make a charitable impact by pooling their money — are growing in popularity. If your not-for-profit isn’t already actively appealing to them, you need to get up to speed because they’re capable of providing substantial financial resources.

When inflation is high, it’s common for people to cut expenses by deciding not to renew subscriptions and memberships. For charities and associations that depend on membership fees, this trend can be distressing — if not catastrophic. If you’re not-for-profit’s membership rolls are declining due to non-renewals, you need to address the problem immediately. Here are some ideas for keeping members in the fold.

If your not-for-profit has an endowment, you probably know it’s a significant responsibility. Endowment investments generally need to be managed by a financial expert. Your organization must adhere to certain regulations, particularly regarding spending. As a refresher — or primer for new employees or board members — here are the basics of endowment management.