John Ghiorso’s Post

A lot of agencies are just glorified nonprofits. From all outward appearances they're doing great... They have happy clients. They're growing top line. They're adding staff. Yet, they make no money. If you're an agency founder in this position, you need to focus on fixing your delivery margin, i.e. the money a client pays for your service minus the cost to deliver it. For a small agency (under 10 people) 60-70%+ is ideal. For a slightly larger agency (10-50 people), shoot for 50-60%. When you get this number to healthy place, you can run a well resourced operation while pushing the envelope on rapid growth. You can use your cash to over-invest in growth for as long as you want, and then pivot back to a healthy 25-30% net margin once you have momentum. The key is being unwavering in the maintenance of your delivery margin. If it starts to creep down, it can become a slippery slope right back to nonprofit territory. #AgencyLife #Agency #AgencyGrowth

The relationship between Form 990 and nonprofit fundraising is significant and multifaceted: 1. Transparency and Trust: Form 990 provides a public record of a nonprofit's financial activities and operational practices. When potential donors and grantmakers can easily access and understand a nonprofit's financial health, program expenses, and executive compensation, it builds trust and credibility. 2. Demonstration of Impact: Nonprofits can use Form 990 to showcase their program achievements and how they allocate funds. 3. Compliance and Eligibility: Regular and accurate filing of Form 990 helps maintain a nonprofit's tax-exempt status. Losing this status due to noncompliance can severely impact an organization’s ability to fundraise, as contributions would no longer be tax-deductible for donors. 4. Marketing and Public Relations: Although primarily a tax document, Form 990 can serve as a marketing tool. Nonprofits can highlight their successes and efficiency in the form's narrative sections, such as the Statement of Program Service Accomplishments. 5. Strategic Planning: Insights gained from preparing and reviewing Form 990 can help nonprofits identify strengths, weaknesses, and opportunities. Overall, the relationship between Form 990 and nonprofit fundraising is deeply intertwined, with the form serving as a key document that impacts a nonprofit's reputation, donor trust, compliance status, and strategic direction. #form990essentials #nonprofittransparency #irscompliance #nonprofitfinances #charityaccountability #financialtransparency #nonprofiteducation #990filing #nonprofitguidance #taxexempttips #cnrgaccountingadvisory

❓ Ask Manny: Blog Alert ❗ This week on #AskManny, Alex is seeking clarity on the obligations a small nonprofit has with Federal, state, and local governments. Understanding these responsibilities is crucial for ensuring compliance and smooth operations. Click the link below to access Manny Cosme, CPA expert advice:

💡 Top 4 KPIs Every Nonprofit Should Track for Success 💡 Effective financial management is essential for every nonprofit to achieve its mission. Here are the top 4 KPIs every nonprofit should be tracking: 1. Program Efficiency Ratio: This measures how much of your expenses are dedicated to programs and services vs. admin costs. A higher ratio builds donor trust and attracts funding. 2. Donor Retention Rate: Understanding how many donors are returning year after year is crucial for sustainability. Retaining 10% more donors can drastically cut fundraising costs. 3. Fundraising ROI: Track how much you’re raising for every dollar spent on fundraising efforts. High ROI means your fundraising is effective and efficient. 4. Operating Reserve Ratio: This tells you how many months your nonprofit could operate without new income. A strong reserve provides financial stability during uncertain times. Are these KPIs part of your nonprofit's strategy? Comment below! For personalized guidance on optimizing your KPIs, schedule a free consultation at www.thejcamillellc.com. #NonprofitKPI #CFOInsights #NonprofitFinance #MissionDriven #NonprofitSuccess #FundraisingTips #ImpactMeasurement #NonprofitLeadership #GrantWriting #SocialImpact

The Federal Office of Management and Budget (OMB) has made some changes to the rules related to federal grants to nonprofit organizations. This includes, an increase to the Indirect Cost rate from 10% to 15% and a rasie of the threshold for a Federal Single audit from $750,000 to $1,000,000. These changes take effect October 1, 2024. Learn more about the changes! https://lnkd.in/dN3ECvRc

Does applying for grants feel like spinning the Wheel of Fortune? Here’s how you can stop leaving your nonprofit’s funding to chance: 1️⃣ FOCUS ON YOUR GOAL Don’t chase funding that doesn’t fit. Stay true to your mission and avoid creating new programs just to land a grant. 2️⃣ CONSIDER YOUR RESOURCES Grant writing takes time. Make sure your team is ready to commit to the process and see it through. 3️⃣ RESEARCH YOUR FUNDERS Understand your funder’s priorities. Study their previous grantees and make sure your project is aligned with their goals. 4️⃣ CALL THE FUNDER A 5-minute conversation can reveal crucial details and ensure you’re on the right track before investing hours into an application. 5️⃣ USE GRANT ADVISOR GrantAdvisor gives you real reviews from nonprofits who’ve worked with the same funders. It’s like Yelp for grant seekers! 👇 I’ll drop a link to GrantAdvisor in the comments below. Ready to take the guesswork out of your grant strategy? DM me to book a call. #Nonprofit #GrantWriting #NonprofitLeaders #NonprofitSuccess

As a nonprofit, what is your #1 struggle with financial oversight? One common struggle for nonprofits is maintaining proper financial oversight. With limited resources and often busy schedules, it can be challenging to keep track of every transaction and ensure that all financial activities are in line with the organization's goals and mission. One of the main reasons for this struggle is the lack of dedicated financial staff or expertise within the nonprofit. Many smaller organizations rely on volunteers or staff members who have other primary roles within the organization. This can lead to a lack of understanding or experience in managing finances, making it difficult to properly oversee them. Another challenge that nonprofits face is navigating complex financial regulations and reporting requirements. Nonprofits are subject to different rules and regulations than for-profit businesses, which can be overwhelming for those without a background in accounting or finance. Sound familiar? If any of these challenges sound like something you've face and you need help, let's talk! #thewrightlawyer #nonprofitlawyer #lawfornonprofits #charitylaw #legaladvice #socialgood #nonprofitorganization #taxlaw #nonprofitmatters

Numbers are just numbers. Or are they? In nonprofits, they transform into stories of change. Let me share a journey. Years ago, a small nonprofit approached us at the brink of closure. Their mission was noble, but their numbers didn't reflect their impact. We stepped in and saw more than just figures. We saw potential. With disciplined accounting, we helped them uncover the hidden narrative. Each dollar spent became a chapter in their success story. Their story, once buried under spreadsheets, emerged as a tale of hope and resilience. Today, they're thriving, impacting lives more than ever. The numbers told a story. And they believed in it. Accounting isn't just about balance sheets. It's about breathing life into your mission. So, to every nonprofit, remember: Behind every figure, there's a story waiting to be told. What story will you tell today? #NonprofitImpact #PurposeDrivenFinance #StoryBehindTheNumbers #AccountingForChange #MissionDrivenAccounting #FinancialStorytelling #FinanceForGood #EmpoweringNonprofits #ImpactThroughNumbers #BeyondBalanceSheets #NumbersWithPurpose #NonprofitSuccess #TransformingCommunities #ResilientNonprofits #PurposeInNumbers

🎉 Ready. Set. Celebrate #NationalNonprofitDay (#NND) tomorrow, a great opportunity to thank #NPOs for the positive impacts they make on our communities and the world https://shorturl.at/4vv9Z (via National Today) Learn how Consultance Accounting can simplify and streamline your nonprofit accounting https://shorturl.at/iliJn #accounting

🌟 Diversify Funding Streams - And Not for the Reason You Think 🌟 Most people get concerned with government funding because of sudden budget cuts or delays in payment - leaving an organization scrambling. Yes, that's terrible. But you should be diversifying for other reasons, too. In my 15+ years of guiding nonprofits, a critical challenge stands out: heavy reliance on government funding. While these funds are vital, they often come with restrictive margins that can leave a nonprofit cash strapped with little wiggle room. 📉 The Reality: Government funding covers essential costs but rarely leaves room for unexpected needs or growth opportunities. This lack of flexibility can threaten an organization's stability and growth. It most certainly limits a nonprofit's ability to take risks that can really move the organization forward. Most organizations I see with a heavy concentration of government funding are, put simply, hanging on by a thread. 🏔 🎯 Strategic Solution: Diversify your funding. Strive for at least 50% of your income from unrestricted sources. This shift isn’t just about financial health; it’s about granting your organization the autonomy to pursue its mission without undue restrictions fully. Empowerment through Philanthropy: Embrace philanthropic contributions that offer unrestricted funding. These resources are crucial for allowing your nonprofit to innovate, plan strategically, and remain resilient in the face of financial fluctuations. Put another way, don't push a donor to put restrictions on gifts when they aren't trying to attach the strings (I see this a lot with pushing for restricted endowment gifts). 🔍 Future Focus: Let’s redefine how we finance our missions. By diversifying our revenue streams, we ensure our nonprofits are surviving and thriving. #NonprofitSustainability #FinancialFreedom #nonprofit #fundraising #philanthropy #development #government #thecharitycfo #accounting #grants #grantwriting