Non-profit and philanthropic organizations have a responsibility to ensure that their financial resources are used effectively and efficiently to carry out their missions. The Mississippi Community Foundation was created to facilitate giving, even for those with complex finances and charitable objectives. Donations can be made in cash, revalued shares, real estate or other assets. Philanthropic and not-for-profit organizations must ensure adequate levels of funding to carry out their missions and activities, and diversify their sources of income when possible.
The Mississippi Alliance of Nonprofit Organizations and Philanthropy is an association of members of organizations with a mission that supports learning, growth, development and collaboration between nonprofit organizations and philanthropy. Board members and key personnel must understand how to read and interpret financial statements, including limits on the use of restricted funds in not-for-profit organizations, the role of debt, and have a system that allows people to report financial misconduct without consequences. Non-profit organizations and philanthropic organizations can assume the responsibility of fiscally sponsoring another organization with the approval of the board of directors. It is important for non-profit organizations and philanthropic organizations to act as responsible managers in the management of their financial resources.
They must complete the annual Unified Registration Statement (URS) and financial statement (FS), as required by the Mississippi Secretary of State, in a timely and accurate manner. If they accept funding from government entities, they must thoroughly negotiate contract terms to ensure that payment levels, conditions, and reporting requirements are consistent with the organization's mission and the interests of the people they serve. Non-profit organizations and philanthropic organizations must also ensure that assets are used solely for the benefit of the organization and not for personal or other benefits. They must openly communicate information about their IRS Form 990 for the previous three years to make it available to those who request it.
The treasurer should also encourage the board of directors to know the current financial situation of the organization, the expected revenues and the need to make timely adjustments to expenses to keep the organization in good shape. In addition, non-profit organizations and philanthropic organizations must complete IRS annual reports (forms 990, 990EZ, 990N and corresponding attachments) in accordance with IRS requirements in a timely and accurate manner. If their income exceeds the Mississippi Secretary of State's income threshold, they must ensure that their financial statements are audited, certified and prepared in accordance with sound accounting practices by a certified public accountant.
