Are you feeling overwhelmed as the end of the fiscal year approaches? Don’t worry; you’re not alone. Every nonprofit faces challenges with closing out the books. But with a little preparation, you can make the process go smoothly. Here are some tips to help you prepare for the fiscal year’s end.
Analyze Your Budget
One of the most important things you can do to prepare for the end of the fiscal year is to inspect your budget. This is the time to identify areas where you may have overspent or where you can cut costs. For example, if you’re paying for an expensive internet service, now is the time to look for a more affordable alternative. There are many low-cost internet services available and providers who offer mobile hotspots and internet for nonprofits that can help you save money.
Another important thing to look at when analyzing your budget is your revenue. Take a close look at where your money is coming from and see if there are areas where you can increase revenue. If you’re bringing in less money than you’d like, consider ways to attract more donors. There are many ways to do this, such as through fundraising events or social media campaigns.
Prepare for IRS Audits
The IRS audits many nonprofits each year. This means you need to prepare should the IRS audit your organization. One of the best ways to set yourself up for auditing success is to keep accurate records of your finances. This includes maintaining detailed records of all donations and expenses.
Update and Organize Your Record
Another important end-of-the-fiscal-year task is updating your records. This includes ensuring you properly documented and recorded all your donations. It’s also a good time to update your contact information for donors, vendors, and other important people in your network.
While updating your records, take some time to organize them, too. This means gathering all your financial documents and putting them in order. It’s also a good idea to create a system for tracking expenses. This will make it easier to keep up with your spending and identify any areas where you may have overspent.
Prepare Your Taxes and Financial Reports
One of the most important things to do as the end of the fiscal year approaches is to prepare your taxes. Gather all the necessary documents and forms. It’s also a good time to review your tax deductions and make sure you’re taking advantage of all the deductions available to you.
You’ll also want to prepare financial reports near the fiscal year’s end. This includes things like your income statement and balance sheet. Your board of directors and other stakeholders use these reports to review your nonprofit’s finances.
Determine Fundraising Strategies
Now is the time to consider next year’s fundraising strategy. For instance, set fundraising goals and determine which fundraising activities you’ll pursue.
For fundraising, there are many things to consider. One of the most important is to set realistic goals. If you set your goals too high, you may feel unsatisfied when you don’t meet them. But if you set them too low, you may not raise enough money to meet your needs.
Another important thing to consider is the type of fundraising activities you’ll pursue. There are many different types of fundraising, such as online fundraising, events, and direct mail campaigns. Choose activities that work best for your nonprofit.
The end of the fiscal year doesn’t have to be stressful. With a little preparation, you can make sure everything goes smoothly. These tips will help you prepare for the fiscal year’s end and ensure that your nonprofit is in good financial shape.