Answers to Reader Questions (Dec ’08)
At the end of most newsletters, we put out the call for “topic requests”. We wanted to get to some reader questions before the year ended. We will try to answer questions like these, that don’t require a whole article, from time to time. If you have article topics that you would like us to cover, email them to us at mail@foundationgroup.com or simply reply to the email newsletter when you receive it. We cannot guarantee your question will be chosen, but we’ll try. On to the questions…
Q) Do all donations need to be spent by year’s end?
A) The quick answer is, no. “Nonprofit” does not mean that at the end of the year there should be no money left in the account. A 501(c)(3) organization can have money left at the end of the year. It would probably be a good idea if it can. Money left over can go toward adding programs, improving existing programs, make up for less funding next year, etc. Never forget that you’re still running a business (of sorts)…you gotta make more than you spend!