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How a Financial Advisor Can Strengthen Your Nonprofit

How a Financial Advisor Can Strengthen Your Nonprofit

December 11, 2023

Nonprofit organizations can have complex financial challenges, from managing endowments to raising funds for their cause to investing in their staff’s future with a business retirement plan. With these potential hurdles, it’s clear that nonprofits could benefit from working with a financial advisor. Unfortunately, however, many don’t because they either don’t know where to begin or they may not understand how their organization could be improved by a financial advisor’s guidance.

If you lead a nonprofit, these are just a few of the ways a financial advisor can help maximize your impact:

Financial Planning and Budgeting

Nonprofit organizations always seek to make an impact on issues that are larger than themselves. Often, they are led by people who have a heart for giving and care deeply about the causes they support. While nonprofit leaders know how to help their communities, they may not have the expertise to develop a comprehensive financial plan and budget for their business. A financial advisor can help set goals for your nonprofit, create a budget that aligns with your mission and provide guidance on expenses and cash flow to ensure long-term sustainability.

Managing Investments and Endowments

Endowments are excellent sources of passive income for nonprofits, helping earn reliable funds through investments instead of relying solely on contributions. It’s important to work with a financial advisor who can invest the funds in a diversified portfolio that can steadily generate income while preserving the principal.

Compliance and Reporting

IRS rules are complicated, and they change constantly. Nonprofits are subject to a variety of regulations, depending on the organization type. Whether you have a private family foundation, a charitable organization, religious or church organization, or political organization, it’s imperative to have tax-intelligent financial guidance on tax reporting, nonprofit accounting standards, audits and financial statements.

Business Retirement Plans

Employees are the heart of nonprofits. Without a devoted staff, these organizations wouldn’t survive and grow. We believe a business is only as strong and as successful as the people who power it. That’s why it’s necessary – and the right thing to do – to invest in employees by offering a retirement plan that allows them to look to the future with confidence.

Willis & Machnik has been part of the Jackson community for nearly 40 years, and we enjoy giving back to nonprofit organizations – through our expertise as financial advisors as well as through our time as volunteers and board members. It’s an honor to work with organizations like the Jackson Interfaith Shelter and to help them establish a 401(k) plan that is now benefitting an employee who once relied on their services. Whether it’s through our partnership with Spring Arbor University, the Phil & Pat Willis Foundation, Uncle Phil’s BBQ, Lumen Christi, or the Hospice of Hillsdale County, we see firsthand just how much a community can benefit from the impact of strong nonprofits.  

To learn more about how Willis & Machnik can strengthen your nonprofit, please contact us.