The State of the Not-for-Profit Sector in 2015 June 05, 2015 Share Subscribe RFP The 2015 edition of The State of the Not-for-Profit Sector offers an in-depth focus on trending issues, with perspectives and action steps for leaders. Within these pages you will find articles that apply to the not-for-profit industry in general, as well as specific features for each of the key sectors that comprise our industry practice — social services organizations, trade associations, religious organizations, cultural institutions, private foundations, and Jewish and Israeli organizations (we cover our seventh sector, higher education, in a separate publication, The State of Higher Education in 2015 — see grantthornton.com/highered2015). Issues and challenges are described, and as importantly, solutions and alternative approaches are offered. We hope you find The State of the Not-for-Profit Sector in 2015 to be a valuable resource. Browse the articles or download the full report (PDF): 12 ways to enhance financial performance through SBA In order to balance financial results and mission-driven outcomes, nonprofit leaders are performing strategic business analyses (SBAs) to transform their operating models and bottom line financial health. Social services: Meet managed care demands with operating solutions Needs are rising, but funding is not necessarily following suit. With an understanding of the changes to come, not-for-profit social service agencies will have a clearer view of their options. Compensating board members is on the table Some not-for-profit board members are compensated beyond expense reimbursement; reasons are attracting and retaining unique skill sets, competing with public or private companies for talent, and fairness about extraordinary time and effort expectations or exposure to high-risk levels. Museums and cultural institutions: Get real with funding requests To keep current and relevant, institutions have to be willing to take on the subject of realistic cost estimations in determining funding needs and requests. Evaluating an M&A strategy to expand impact and enhance outcomes Successful organizations looking to do more, as well as struggling organizations aspiring to financial stability, have explored M&A to maintain financial viability, add depth and breadth to offerings, enhance reputation and brand, and reposition themselves for long-term success. Trade and membership associations: Best practices for corporate credit cards The solution to credit card misuse is to implement a risk management strategy — determine who should receive a card, and then apply strong controls throughout the travel and entertainment process. Strategic ways to pursue unrelated business income As you pursue UBI, ready your organization for an IRS audit by preparing a revenue analysis, following framework recommendations. Religious organizations: Align institutional value to constituent priorities A key strategy to better understanding and connecting with constituents is linking the value of services provided to members’ interests, needs and values. For effective governance, boards must set a stronger tone Boards are recognizing that proper composition, with expanded diversity, is critical to board and mission performance, and they are increasingly setting their own high standards and taking action to meet them. Jewish-Israeli organizations: US nonprofits must control operations funding A U.S. nonprofit raising funds for an Israeli service organization must control how associated overhead costs are covered in order to remain transparent to donors, efficient in operations and compliant with requirements for tax-exempt status. Enhancing the strategic value of the finance function Finance professionals are increasingly being asked to offer insights and deliver greater strategic value to their organization’s long-term planning and resource allocation decision-making. Private foundations: Achieve alternative investment payoff With considerable complexity in alternative investments and more sizable positions taken by private foundations and other nonprofits, it is critical to have the proper policies, procedures and controls in place for evaluation and reporting. Cloud computing’s next step — Recognizing, managing risk Cloud computing is transforming IT and business models in every industry, including the not-for-profit sector; investments are increasing, while spending on traditional hardware infrastructure is decreasing. Download the full State of the Not-for-Profit Sector in 2015 report (PDF). See our State of Higher Education in 2015 report.