With inflation, bank closures and economic uncertainty, it is no wonder that many nonprofits are concerned about their balances.
The first step might be to take account of what you have, according to “How to be confident about your cash balances” by Kate Barr of Propel Nonprofits. The FDIC insures your bank balance of up to $250,000 in any one place, which is comforting for many nonprofits.
If your funds are invested in short-term investment accounts, it may be wise to read up on the fine print and find out how your investments may be affected by recent market fluctuations. Propel Nonprofits also states that you may want to have a discussion with your board’s finance committee and decide if you need to make changes in your nonprofit’s investment policy.
Another option is to consider the Employee Retention Credit (ERC) to be sure your nonprofit is not leaving money on the table. This tax credit expired in September 2021, but it may still be possible to retroactively receive ERC claims in 2023.
Claim ERC funds by:
– April 15, 2024 for Q2, Q3 or Q4 of 2020
– April 15, 2025 for Q1, Q2 or Q3 of 2021
Please note that this post does not constitute financial advice and the content is for informational purposes only.