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7 Ways Your Nonprofit Can Build a Strong Financial Foundation in 2024

Blackbaud

Calculate Your Indirect Cost Rate Complete and correct cost allocation is key to the financial stability of your organization. If you aren’t including indirect costs—such as salaries or rent—into your funding requests or program planning, you are setting yourself up for stress later in the year. Watch an on-demand product tour today.

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Your Unrestricted Funds Need Stewardship, Too

Blackbaud

Many don’t cover operating costs or have a small allotment for indirect costs such as salaries, insurance, and utilities. Don’t Settle for Commercial Accounting Software On the surface, unrestricted funds are easier to manage than restricted funds. Restricted funds often outline what they will fund and what they won’t.

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The Nonprofit Administration Dilemma: How Much Should You Spend on Fundraising?

Get Fully Funded

These are also known as indirect costs, expenses that cannot be tied directly to programs. Donor management software and other technology tools used for raising funds. This total should not go over 35%, the cap recommended by the Better Business Bureau here in the U.S. Expenses related to events. Fundraising training. Legal services.

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Finding Funding for Research

Peak Proposals

If you understand how to build a project budget—and you are familiar with concepts like overhead, indirects, and fringe benefits and how they impact a project— it will make you a more competent grant seeker and ultimately project director if the proposal receives funding. 4 laptops, 3 iPads, and 3 mobile phones.

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Accounting: Data Behind Functional Expense Reporting

The NonProfit Times

Indirect allocation is the more complex method and should be used when the cost benefits multiple functions. The most common allocation methodologies for indirect allocation include employee time and square footage. Square footage percentages can be used to allocate rent, depreciation, certain insurances, and utilities.