Account Tree’s Post

Funding core costs: how to keep the lights on 💡 For small charities, covering core costs like salaries, equipment, office rental, heating and electricity can be a constant battle. Annoyingly, many funders list core costs as one of their exclusions, preferring only to fund direct project activities - even though nothing would get done without your staff and databases! So how do you do it? Here are a few ideas. ❄️ Winter-proof your budget If you don’t already take this approach, why not consider splitting some of your core costs across the projects you deliver, for example adding 10-20% to cover overheads. Not all funders may be open to this approach but it is a good option to test out. 📝 Grants Although many funders don’t like funding core costs such as heating and bills, there are some that do. Investing some time in finding out which these are and submitting applications is a worthwhile long-term strategy. 📞 Keep in touch with your current funders At the time of the first round of Cost of Living support from the government to individuals, some funders (such as Comic Relief Groundwork) took the initiative to automatically top up their grants in recognition of inflation. If you have good relationships with your funders there might be scope to start a discussion about a top-up that reflects your current costs. 💷 Cost of Living funding During the winter, many funders, like local councils and the National Lottery, open additional pots of funding specifically for warm space activities and you can often include core costs in these bids. Getting to know your local Community Foundation is another great way of finding core costs and cost of living funding in your area. What would you add? Ps. For 5 more ideas, check out the Better Story blog.

Preparing for audits can be challenging for schools, especially with cash payments and limited reporting for ticketing, fundraising, and concessions. With GoFan, all payments are accurately documented with detailed reporting to provide visibility of finances across campus. 📈 Learn more about how audits are easier with GoFan in our blog: https://hubs.li/Q02rFksT0

GOT CLOSURE? The viability of the smallest private not for profit institutions of #highereducation is constantly in question. Fundraising is usually not the answer. Operating deficits needs to be addressed in a timely manner. The probability of "saving" a college by fundraising is more of a kick the can strategy.

My oldest has just started school & one thing seems absolutely evident - the school doesn't have enough money to provide a top class education (and its getting worse). As a nation we are choosing not to invest in our young people and if nothing else our kids are going to hate us when they grow up & they find out. IMHO there is a massive opportunity here - Small independent businesses are under pressure and, like schools, the state is not going to help. I know this I run one (its hard but its fun - I wouldn't have it any other way). So can schools help local businesses and vice versa? Absolutely if its win-win. An example: Recently our parents association asked the local fish a chip shops if they would give about 100 portions of chips for a parents bingo event. They all said no. Quite rightly - the offer was wrong. They are not charities. In tough times every penny spent matters. This is how it could have been done: 'Hi. Please could you give us 100 portions of chips for our bingo night if we guarantee you will receive at least double the return on your investment or we pay for the chips?' 'How?' 'You give us the chips and in the next month 30 parents from xxx school will buy at least a portion of chips from you and if only 29 do I will pay for those 100 portions' 'Seems fair when do you need them?' At the event and in all the publicity: 'Hi guys the food at this event has been sponsored by xxx fish and chips. But here's the deal they are a small business and need our support otherwise why would they sponsor us again? We need to demonstrate the value of our community is to them. I have guaranteed that 30 of us will buy from them in the next month & if we don't then we will pay for the chips like normal which means less money going to the school to pay for the world class education we want our kids to have. This is what I need you to do. In the next month go in & buy at least a portion of chips from them &: 1) Tell them you are from xxx school 2) Send me a whats app with a) a photo of you buying b) how much you spent I will then be able to tell them exactly how much their investment has returned them & if it works we can start getting more investment from local businesses' Who wins? The school makes more money from the fundraiser The local business gets more sales The families get a meal for their contribution Everyone gets something tangible - its not a charitable donation. Schools don't need to pay for services/products they can get locally. Local businesses must make more, measurable sales every time they 'invest' in a school. The current funding 'crisis' in schools is a brilliant opportunity to completely reinvent local communities. I would love to know your thoughts on this so just drop me a message. To local schools and local businesses everywhere the future is bright. Tom PS I hope never to read again that inflatables are being cut from my daughter's school sports week because the school can't afford them.

I feel vindicated (at least a bit) A couple of weeks ago I posted about my daughter's school struggling for money and how there is a way that the school, local businesses and parents can all benefit in a sort of virtuous cycle. (https://lnkd.in/euG2GRKK) As corporate members of the Craft Butchers Association I get the monthly magazine so when I read this from one butcher I found it very revealing. "At this time of year we are inundated with local schools, scout groups, and other organisations asking for raffle prizes/donations for their BBQs. Though it can feel a bit wearing, to me these are great opportunities to get our name out there" And a bit further down "Every year we gain custom from people that have attended events and enjoyed our products so I think these donations more than pay for themselves" The key words for me here are 'wearing' and 'think'. Firstly he is not a charity so I believe community groups need to get away from the begging mindset if they want to survive in the current climate. So the onus is on the groups getting the sponsorship to show the value they provide i.e see it as a return on investment. My previous example was with a chip shop but the same applies here. The group/school makes an offer he can't refuse. They pay full price for the meat unless xxx amount of people who have been to the event come and buy xxx amount of product in the next month or so. They prove this by making sure anyone that does buy sends a whats app to the organiser with a photo of the receipt Then the organiser can prove that it is worth his while (and if the parents don't want to buy from him then the strategy is pointless to him) and start to build sponsorship offering that works (or doesn't) and even have people coming to them with offers to supply plus more. Then he is no longer 'thinks' it is worthwhile he 'knows' it. Admittedly if I was advising him on sponsorship I would be telling him he should have a way of measuring his spend (unless he just wants to do his bit for charity which is of course fine too but in this case it doesn't sound like that to me). PS I'm really hoping to make my mark on the food at the school events next year - no more frozen cash and carry burgers. PPS By doing this we keep money in our local communities for longer which is the key to strong communities.

Whether you're a foundation responsible for tracking your #charitable distributions or a grantee organization seeing to better understand foundation grantmaking requirements, this a valuable piece outlining the ins and outs of the 'RMD'. Chris Clarkson, CFA, a Director in Bernstein Private Wealth Management's Wealth Strategies team. Many private #foundations exceed the 5% minimum required distribution, but is this always the best approach? Understanding the rules governing qualified distributions can help you evaluate the long-term financial implications. Bernstein's latest blog shares ways to maximize the #impact of your foundation distributions:

The recent Government announcement on VAT changes will impact all private schools in the UK. However, business rates, a devolved issue, will only affect charitable-status schools in England. Currently, about 50% of private schools in England benefit from an 80% charitable rates relief, with many receiving a discretionary increase to 100%. 💼📚 Starting April 2025, the Government plans to remove this charitable business rates relief. The exact scope of this change is still under review, particularly for schools with pupils specified in an Education, Health and Care plan (EHCP). Read our latest article where one of our experts, Mike Bath, provides further detail on the business rates changes for private schools 👉 https://lnkd.in/eyzFUjSz #privateschools #businessrates #charitablerelief #HMRC #VAT #education #taxupdate #article #advisers #maximiseyourpotential

📘 Unlock Your School's Funding Potential with "Charter School Grants 2.0"! Discover essential tips and strategies for securing grants for your charter school. Learn how to craft compelling proposals, navigate federal grants, and benefit from expert insights. Order now and receive bonus resources to support your grant writing efforts. Don't miss out on this opportunity to take your school to the next level! https://buff.ly/3JG93SZ #CharterSchools #GrantWriting #Ads #EducationFunding

In her first detailed tax announcements as Chancellor, Rachel Reeves targeted both those starting off in life and those approaching the end of their lives. From 1 January 2025, private school fees will be subject to the standard rate of 20% VAT for the cost of tuition and boarding, if provided. A private school is defined as one that provides full-time education for pupils who are of compulsory school age but under 19 years old. Nurseries will remain exempt.   While the additional cost may be a minor annoyance for parents who can afford to send a child to some of the elite private schools, it may affect others more: ·      Middle-class parents paying private school fees for two or three children at the average UK cost of £15,000 will see fees increase by around £3,000 per child annually. ·      Prepaying school fees to avoid the VAT charge will fail as fees invoiced or paid on or after 29 July 2024 (the day of the announcement) for school terms after 1 January 2025 will be subject to VAT. The exact percentage fee increase will vary between schools. While schools will be able to offset costs through VAT-deductible goods and services, private schools that are charities will no longer qualify for charitable business rates relief.   The government’s technical note explaining how private school fees will be subject to VAT can be found here. https://lnkd.in/eWxwZiP9

If your loan interest rate is increasing, you may be facing…   ❗ Higher monthly payments ❗ Longer periods of indebtedness ❗ Less resources to fund your mission In today’s post, I’m sharing about how I helped a client in this situation…   ✅ Drastically lower their total interest expense ✅ Reduce their loan length to within one month of their original plan ✅ Free up debt payments sooner than expected to fund their mission   If you’re facing rate increases in your nonprofit, I’m here to help you explore your options!  #501c3nonprofit #NonprofitCFO https://lnkd.in/gBc6GguC