Income Test for Private Operating Foundation

In order to qualify as a private operating foundation, a nonprofit organization should prove that majority of its resources are used to run its own charitable programs or to provide its own charitable services. IRS has mandated ‘Income Test’ as a method of distinguishing between a private operating foundation and a public charity. Income test […]

Stakeholders of a Typical Non Profit Organization

A stakeholder is an individual or group which has an interest that the non profit fulfills its mission. Anyone who is interested or affected by the nonprofit organization and its services is a stakeholder. Stakeholders in the nonprofit sector include the following: BENEFICIARIES – The people and parties who actually use the services and goods […]

Options for Structuring a Nonprofit Organization

If you plan to start a nonprofit organization you can choose any one of the following structures for your organization. There are generally five possible structure options for forming a non profit organizations which are as follows: CORPORATIONS – A state law creates a corporation which is generally limited by and created under statutory law. […]

Best Nonprofit Accounting and Book Keeping Software

If your nonprofit organization has more than 300 transactions a year (just a thumb rule), it’s better to graduate from manual accounting system to more specialized Nonprofit Accounting and Book Keeping Software programs. Although these programs will require you to invest some money and time in getting used to their interface, they are worth giving […]