Nonprofits often receive funding that comes with specific restrictions, which can make funds more complex to manage and track. A donor might want funds used for a specific program, or a foundation might require spending within a certain timeframe. None of that is unusual, but it does mean there’s more to manage behind the scenes, especially as a nonprofit organization grows. Understanding restricted funds, along with reporting and compliance responsibilities, is an important part of that picture.

For the past several years, most donors have received little to no federal tax benefit for giving to charity. Taxpayers who claimed the standard deduction could not deduct traditional charitable contributions. To receive a tax benefit, a donor had to itemize on the return. Beginning in 2026, that changes. The One Big Beautiful Bill Act (OBBBA) creates a permanent universal charitable deduction for taxpayers who take the standard deduction, which today applies to roughly 86% of filers. For nonprofit organizations, this provides federal incentive to a larger group of potential donors.

Many nonprofit organizations undergo an independent audit each year, often as a condition of receiving grant funding or meeting state requirements.  An audit involves an evaluation of financial statements, review of supporting documentation, and gaining an understanding of internal procedures. It is a complex process that requires staff to provide significant information about operations and related documentation. Preparation largely determines how efficiently the process moves and how many follow-up requests arise during fieldwork.

In November 2025, the IRS announced that interest rates will remain the same for the first quarter of 2026, which begins January 1, 2026.

Organizations that receive federal funding are held to a high standard of accountability. To meet this standard, many must undergo what is known as a Single Audit. The requirement was introduced several decades ago to replace several program-specific audits with one comprehensive review. Since then, the rules have changed, including periodic increases to the dollar threshold that determines who must have the audit.

When the One Big Beautiful Bill Act (OBBBA) became law on July 4, 2025, it brought major updates to tax policy and federal spending. The changes affect everything from how individuals claim deductions to how corporations make gifts, along with adjustments to several major federal programs. For nonprofits, these changes will likely influence donor behavior, and in some cases, the amount of help people seek from community organizations.

On July 4th, 2025, President Trump signed The One Big Beautiful Bill (OBBB) into law, which passed Congress through the reconciliation process. The legislation includes several tax changes and updates that build upon the Tax Cuts and Jobs Act of 2017, which was passed in Trump’s first term. The major updates include changes to the R&D Tax Credit, expansion of the Section 199a deduction, return of 100% bonus depreciation, increase in the SALT Cap, permanent extension of the New Markets Tax Credit, and much more.

The Charitable Registration & Investigation (CRI) Section of the New Jersey Division of Consumer Affairs (DCA) is the state department that regulates the fundraising activities of many charitable nonprofit organizations and others doing business in the state of New Jersey, through enforcement of the provisions of the Charitable Registration & Investigation Act (CRI Act).

In November 2024, the IRS announced that interest rates will decrease for the first quarter of 2025, which begins January 1, 2025. The changes outlined in IR-2024-290 outline all the relevant interest rate changes including various reductions.

Fraud is a persistent threat every organization must face. Although most are honest and do not commit illegal activities, all it takes is one bad actor to have a significant and negative impact. The risk is especially high for nonprofit organizations that have limited resources to implement the training and controls necessary for optimal risk management. According to the Association of Certified Fraud Examiners’ (ACFE) Occupational Fraud Report 2022: Report to the Nations, there were 188 cases of nonprofit fraud reported with a median loss of $60,000 during the period examined. It was also reported that religious, charitable, and social service organizations experienced a median loss of $78,000.