If you’ve recently started a new charity, you should be awarded for your efforts. Most people understand that launching a not for profit organization involved a huge amount of investment, and so your pitch must have been perfect. Of course, it’s vital that you now deal with all financial matters in the most professional way possible. People who run charities can often find themselves in hot water if they fail to keep accurate records and report on their income properly. Our tips today should help you to cover all the bases and guarantee you are never in trouble with the tax man.
Employ the assistance of an expert
There is no getting around this one. The very first thing you must do is look online for a specialist accountancy company that has experience in dealing with charities. For those of you who have very complicated books, this non profit accounting firm has the sort expertise you’re looking for. However, there are thousands of them out there at the moment, and so it’s a good idea to select one that is based in a town or city near you. That will make it easier to ensure that there is always someone on hand to give you help and advice as and when you need it.
Start keeping accurate records
Record keeping is exceptionally important when running a charity. While you might have the best accountancy specialists on your side, they will have a hard time completing your books at the end of the year when there are no records. You must keep hold of every receipt you receive for purchases, and you must save or print every invoice you send out. They will help to determine exactly how much cash has moved through the charity during the tax year. Failure to do that could mean you undergo an audit, and that can be an incredibly stressful time.
Outsource wherever possible
Outsourcing is always a good idea when it comes to managing finances for a charity. There are a number of tasks that would be better performed by people who are not directly employed by your charity. For instance, the job of encouraging and managing donations will require a lot of dedication. Unless you want to employ someone in-house to deal with that, you should outsource it to an experienced expert. Believe it or not, there are a number of firms out there that focus their efforts on making sure charities get all the funding they require. Perhaps you should contact them?
As you can clearly see from the points made in this post, there is nothing to worry about when it comes to dealing with finances for your charity. You simply have to follow our advice and let other people do most of the complicated work. At the end of the day, your role is to push the charity forward and help it to gain lots of public attention. Money matters are better handled by those who experience and qualifications in the subject.
Good luck with your new charity! We hope everything goes according to plan.
Category: Philanthropy Charitable Giving