Amid the 2008 financial melt down organizations and individuals have been further adversely effected with the traditional financial institutions. The yield on savings, money-market accounts, and certificate of deposits are dropping dramatically.

There are basically only two types of entities who are giving a better return;  Credit Unions and Small Banks.  It just goes to show you that local banking just might be a better way to bank and an avenue to building sound financial relationships.

The change in accounting standards will cause two surprises for nonprofits.

Audit costs are likely to increase up to 20%.

Your audit will cite internal controls and other processes in your organization which it had previously ignored in prior years.

To control your audit costs, be better prepared to provide your auditor the financial material in an organized manner. Your organization will be billed for each minute. Your mess is billable for them and they are not required to tell you how to decrease your costs.

Second, make sure more employees are trained on your internal control processes. The more you can document the checks and balances the better for management and the board to show their fiduciary responsibility.

Nonprofits service millions of people each day.  The government gives a break on fuel costs to millions of individuals each day but not to nonprofits.

While non profits are exempt from paying property taxes and income taxes, they are required to pay gasoline taxes and fuel taxes and to reimburse employees for transportation costs. 

So I challenge the nonprofit community to show the government how much it contributes annually in fuel and transportation related taxes.

As the largest employer sector in the country, you make a big difference and get little credit.

Stand up and be counted.  Being part of an Association is one way to be that voice.