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.

If you took a moment to understand where bottle water comes from and its degree of regulatory safety review you might rethink its purchase.

Bottle water is one great sales gimmick.  You pay for the plastic the bottle is shipped in, you pay for the truck carbon imprint that delivers the bottle water, you pay for the production of the fuel to support the truck, you pay for the drilling for water, you pay for the environmental impact of the drilling.  You take your chances with the unregulated or tested bottle water industry.  You take chances with the bacteria and mold that builds up in the water coolers due to the air entering the system each time you change the bottles. 

Oh, how about the fact that you’re paying the square footage to store all of those bottles.

If you review the amount you spend on the water and what perks you could do for your employees in lieu of it, you would be surprised.

You can create the same if not better result with Reverse Osmosis Systems and lower your costs dramatically.

Water coolers are connected to a filtration system. Gone is the need to store bottles, change the bottles, clean up the slippage and running out of water.

If you want a recommendation, check out the company the Commonwealth of Massachusetts has selected at: http://www.atlaswatersystems.com

I have no association with any company but feel that this option is a great one for any nonprofit that goes through 6 bottles plus a month. 

Circle Lending now called Virgin Money is a great resource for creating personal and business loans between between associates, relatives and friends. http://www.virginmoneyus.com/Home/tabid/36/Default.aspx

Governing Magazine:  A resource on states and localities.  Great for keeping the pulse on what is happening in states and localities.   http://www.governing.com

Nonprofit Quarterly:  A magazine that provides valuable management information and proven practices. The information is cutting edge, relevant and useful.    http://www.nonprofitquarterly.org

Mission Fish:  The easy way on Ebay to convert in-kind donations into cash or a new way to invigorate your fundraising efforts http://www.missionfish.org/ForNonProfits/fornonprofits.jsp

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. 

The Wall Street Journal reported this week six banks will pay more than 5% on six month, one year CD’s or money market accounts.

AMTrust Direct

6-month CD: 5.36%

1-year-CD: 5.31%

E-Money Market: 5.31%

Capital One

6-month CD: 5.00%

1-year-CD: 5.00%

Money Market: 5.00%

Countrywide Bank

6-month CD: 5.5%

1-year-CD: 5.5%

Savings Link Account: 5.5% (on balances of $10,000)

IndyMac Bancorp

6-month CD: 5.25%

1-year-CD: 5.5%

On line Money Market: 5.75%(on balances 25,000 plus)

ING Direct

6-month CD: 5.15%

1-year-CD: 5.15%

Washington Mutual

6-month CD: 5.5%

1-year-CD: 5.1%

On line Savings: 5.0%

How’s that for giving you a safe return on principle during the turbulent market?

See if your local Bank will match the return.

In your cash flow management it may be prudent to take advantage of these types of six and 12 month CD’s. For financial Institutional Management and Retirement Plan Management I refer you to Fisher Investments which I previously mention in an earlier Blog. I would suggest John Wasiejko at Fischer Investments john@fischerig.com 603-361-4540