Addressing Key Questions and Trends
A new year ushers in a fresh batch of resolutions and goals. It’s also a time when new questions pop onto the radar. That’s certainly the case even in these early days of 2024. Here are a few of the top questions we’re already hearing from our nonprofit partners, along with answers to help you navigate the year ahead.
“What is the new Corporate Transparency Act, and do we need to do anything about it?”
Recently enacted, the Corporate Transparency Act is part of the broader Anti-Money Laundering Act of 2020. Its primary aim is to create a comprehensive database of “beneficial owners” for companies where such information isn’t easily accessible (like in publicly traded companies). The Act’s core goal is to thwart efforts to disguise ownership in entities used for illicit activities like money laundering, terrorism financing, tax evasion, etc. Some good news for nonprofit organizations, particularly those under 501(c)(3), is that they are exempt from the requirements of this Act.
“What are some key fundraising trends to look out for in 2024?”
In light of challenges reminiscent of past financial downturns, fundraising has become a focal point for organizations and their governing bodies. Prioritizing development strategies that stand out to attract new benefactors and strengthen ties with existing ones is crucial. Tactics involving influencer outreach, fostering donor trust, and a deep understanding of how donor-advised funds operate (don’t hesitate to contact our team for more info!) are topping the list of strategies for 2024 fundraising agendas.
“How can we ensure we’re respecting donor wishes?”
With recent news spotlighting issues around donor intent, charities are seeking ways to guarantee compliance with these stipulations. The key is to exercise caution, particularly when fundraising for your endowment or organizing planned donations. If a donor shows an interest in placing restrictions on their contribution, getting in touch with our community foundation team is advisable. Often, we can assist both you and the donor in setting up a fund at the community foundation that aligns with the donor’s wishes, supports your goals, and minimizes the risks of misinterpretation and legal complications.
