Charity Therapy

Your nonprofit is doing real work, but do your financials show it? In this episode, Meghan and I tackle a listener question from a small nonprofit that's running into a big problem: their numbers don't match their story. The for-profit company supporting them pays for nearly everything, but none of that shows up on the books, and funders are raising eyebrows. Real Listener Question: "Our employees, office space, and equipment are all paid for by a for-profit company and donated to our nonprofit. Our financials make it look like we're barely doing anything. I've been tasked with finding major funders and the narrative just doesn't match the numbers. What do I do?" If your nonprofit receives donated goods, services, space, or time, this episode is for you. Meghan and I break down what in-kind donations are, why recording them matters, and how getting this right can completely change how funders see you. What You'll Learn: What counts as an in-kind donation and how to assign it a value How to record donated office space, employee time, and services on your books Why your financials need to tell the same story as your narrative How in-kind contributions can strengthen your grant proposals Why nonprofit bookkeeping is specialized and when to bring in the experts The one thing you should never do when valuing a donor's gift Bottom line: Your numbers tell a story whether you want them to or not. Make sure yours reflects the real work your nonprofit is doing. Resources from this Episode Learn about the value of volunteer time at Independent Sector: https://independentsector.org/research/value-of-volunteer-time/ Quickbooks for Nonprofits Facebook Group from Megan Genest Tarnow: https://www.facebook.com/groups/QB4NPs Previous Episode: Can Business Interruption Insurance Help Nonprofits Who Closed During ICE Raids? With Cody Wiswasser: https://birkenlaw.com/charity-therapy-podcast/ct160-nonprofit-business-insurance Episode Transcript: https://birkenlaw.com/wp-content/uploads/2026/03/CT161_Transcript.pdf Connect with Us Jess Birken: https://www.linkedin.com/in/jessbirken/ Meghan Heitkamp: https://www.linkedin.com/in/meghan-heitkamp-829254115/ Listen & Engage Listen on Apple Podcasts | Spotify | YouTube | Amazon Music Rate & Review on Apple Podcasts: Click "Ratings and Reviews" then "Write a Review" Send us your nonprofit questions: https://birkenlaw.com/podcast/#podcast-story Stay Connected Sign up for the Birken Law Email list: https://birkenlaw.com/signup/ Follow us on Facebook, Instagram, Twitter

Your nonprofit closed its doors because of ICE enforcement or federal funding cuts. Is there an insurance policy that could actually help? Maybe, but the answer is a lot more complicated than you'd hope. In this episode, I'm joined by Cody Wiswasser, an insurance professional at Community Partners Insurance Group, to dig into my questions. With so much uncertainty hitting nonprofits right now, I needed to know whether business interruption insurance is something my clients should actually be thinking about. Here's the situation: Can nonprofits get business interruption insurance? Are closures for ICE raids or funding cuts covered? Cody breaks down how business interruption coverage works, what it actually takes to file a claim, and why the fine print in your policy matters. What You'll Learn: What business interruption insurance is and whether your nonprofit qualifies The difference between standard and standalone coverage When a closure actually triggers a claim and when it doesn't How your nonprofit's specific mission affects your coverage options Why you need to understand your coverage BEFORE filing a claim Bottom line: Insurance isn't a magic bullet, but it DOES matter for nonprofits. For nonprofits that qualify, business interruption coverage could be important for them. Resources from this Episode Learn more Community Partners Insurance Group at https://communitypartnersins.com Contact Cody for your insurance needs at [email protected] Which States Are In The Midwest? Get mad here: https://fivethirtyeight.com/features/what-states-are-in-the-midwest/ Previous Episode: Can You Use Your Retirement Funds to "Invest" In A Nonprofit? With Jeff Beck: https://birkenlaw.com/charity-therapy-podcast/159-invest-retirement-funds Episode Transcript: https://birkenlaw.com/wp-content/uploads/2026/03/CT160_Transcript.pdf Connect with Us Jess Birken: https://www.linkedin.com/in/jessbirken/ Cody Wiswasser – reach out at: [email protected] Listen & Engage Listen on Apple Podcasts | Spotify | YouTube | Amazon Music Rate & Review on Apple Podcasts: Click "Ratings and Reviews" then "Write a Review" Send us your nonprofit questions: https://birkenlaw.com/podcast/#podcast-story Stay Connected Sign up for the Birken Law Email list: https://birkenlaw.com/signup/ Follow us on Facebook, Instagram, Twitter

Do you know someone eyeing their retirement accounts to fund their nonprofit dreams? We need to talk! In this episode, I'm joined by Jeff Beck, a wealth advisor at COE Financial Group, to tackle a listener question that had me equal parts fascinated and horrified. Real Listener Question: "My partner has a traditional IRA with about $100,000 in it. Can she invest that money in my 501(c)(3) without penalties? Do we need to set up a for-profit company for her IRA to invest in first? Are there IRS rules against her investing in something I founded and run?" Jeff and I dig into the mechanics of IRAs, self-directed accounts, and what the IRS actually allows when it comes to retirement funds and charitable giving. Spoiler alert: nonprofits DO NOT have shareholders so you can't "invest" in them and get a return! There are some serious red flags here, both on the legal side AND in this interpersonal relationship. What You'll Learn: Why you can't really "invest" in a nonprofit How giving to a nonprofit can benefit an individual's tax position What a self-directed IRA is and what you get to do with it One legitimate way to donate your IRA funds to a nonprofit tax-free Why getting "returns" on your contribution can put a nonprofit's tax-exemption at risk How you can financially hurt yourself when you're starting a new organization Bottom line: Using your (or your significant other's) retirement fund to set up your new business is probably NOT a good idea. Protect yourself, protect your partner, and please, let that IRA grow. Resources from this Episode Learn more about Jeff Beck at Coe Financial Group: https://www.coefinancial.com/ Previous Episode: How Nonprofits Can Find and Hire a Good Lawyer https://birkenlaw.com/charity-therapy-podcast/158-hiring-lawyer/ Episode Transcript: https://birkenlaw.com/wp-content/uploads/2026/03/CT159_Transcript.pdf Connect with Us Jess Birken: https://www.linkedin.com/in/jessbirken/ Jeff Beck – reach out at [email protected] Listen & Engage Listen on Apple Podcasts | Spotify | YouTube | Amazon Music Rate & Review on Apple Podcasts: Click "Ratings and Reviews" then "Write a Review" Send us your nonprofit questions: https://birkenlaw.com/podcast/#podcast-story Stay Connected Sign up for the Birken Law Email list: https://birkenlaw.com/signup/ Follow us on Facebook, Instagram, Twitter

Finding a lawyer should not feel harder than solving the legal problem itself. And yet, here we are. In this episode, Meghan and I talk about something that comes up constantly in my nonprofit law practice: how nonprofit leaders and boards actually find a good lawyer and how to tell whether someone is the right fit. Real Listener Question: "I am a board member tasked with finding my small nonprofit a lawyer. I am trying to collect five options for the board to review and have the board interview each lawyer. I've prepared an RFP to get information from as many firms as possible. Is there anything else I'm supposed to do to make sure we did a fair search?" We dig into why hiring a lawyer is not the same as hiring other vendors and why an RFP is often the wrong tool for the job. We talk about common misconceptions nonprofits have about fairness, pricing, and process, and why trying to copy large institutions can backfire for smaller organizations. This conversation also pulls back the curtain on how lawyers actually work, what red flags to watch for, and how to avoid overcomplicating a decision that already feels overwhelming. What You'll Learn: How nonprofits typically find lawyers Why RFPs usually do not work for legal services What legal expertise actually looks like How pricing structures should be discussed Warning signs early in the relationship Why "cheapest" is not always best How to trust your gut while doing due diligence Bottom line: Hiring a lawyer does not require a perfect process. It requires clarity, trust, and a focus on finding someone who understands your nonprofit and can actually help you. Resources from this Episode Previous Episode: How Classy May Be Hurting Your Donor Relationships: https://birkenlaw.com/charity-therapy-podcast/ct157-classy-donor-acknowledgement/ Episode Transcript: https://birkenlaw.com/wp-content/uploads/2026/03/CT158_Transcript.pdf Connect with Us Jess Birken: https://www.linkedin.com/in/jessbirken/ Meghan Heitkamp: https://www.linkedin.com/in/meghan-heitkamp-829254115/ Listen & Engage Listen on Apple Podcasts | Spotify | YouTube | Amazon Music Rate & Review on Apple Podcasts: Click "Ratings and Reviews" then "Write a Review" Send us your nonprofit questions: https://birkenlaw.com/podcast/#podcast-story Stay Connected Sign up for the Birken Law Email list: https://birkenlaw.com/signup/ Follow us on Facebook, Instagram, Twitter

Nonprofit newsflash - your donation platform might be quietly annoying your biggest donors 😬 In this episode, Meghan and I dig into some nonprofit LinkedIn drama sparked by a post from the one and only Eve Borenstein. Here's the situation: You gave a big donation, and you received an auto-generated donation receipt from the org's donation platform. The problem? The gift acknowledgement letter and receipt are WRONG. We break down why donor acknowledgement letters matter so much, what the IRS actually requires in those receipts for gifts over $250, and how automated systems can unintentionally damage donor trust. We also talk about the growing trend of for profit software companies promising to "handle everything" for nonprofits while missing critical compliance details. If you rely on online donation platforms, this conversation will likely make you rethink what you are outsourcing and what still needs human attention. What You'll Learn: What SHOULD be in your donor acknowledgement letters How bad receipts can create donor frustration Where donation platforms and tech solutions for nonprofits can fall short How automation can quietly hurt your donor retention Bottom line: Donor relationships are built on trust and gratitude. When your systems create friction instead of appreciation, even unintentionally, it can cost you future support and credibility. Resources from this Episode Listen to our past episode with Eve Borenstein here: https://birkenlaw.com/charity-therapy-podcast/ct104/ Read Eve Borenstein's LinkedIn post about Classy here: https://www.linkedin.com/posts/taxexemptlaw_so-annual-gripe-continues-last-week-activity-7412874086961541120-7bsN?utm_source=share&utm_medium=member_desktop&rcm=ACoAAAEjProBQJRvgNexcp-oDkRTlIoUrU5fW7Q Listen to our last episode with Ephraim about GoFundMe here: https://birkenlaw.com/charity-therapy-podcast/ct150/ Generate a good Gift Acknowledgement Letter here: https://birkenlaw.com/mg-document-app/gift-acknowledgment-letter/ Previous Episode: Can Nonprofits Give Tax-Free Money to People?: https://birkenlaw.com/charity-therapy-podcast/156-nonprofit-give-money/ Episode Transcript: https://birkenlaw.com/wp-content/uploads/2026/03/CT157_Transcript.pdf Connect with Us Jess Birken: https://www.linkedin.com/in/jessbirken/ Meghan Heitkamp: https://www.linkedin.com/in/meghan-heitkamp-829254115/ Listen & Engage Listen on Apple Podcasts | Spotify | YouTube | Amazon Music Rate & Review on Apple Podcasts: Click "Ratings and Reviews" then "Write a Review" Send us your nonprofit questions: https://birkenlaw.com/podcast/#podcast-story Stay Connected Sign up for the Birken Law Email list: https://birkenlaw.com/signup/ Follow us on Facebook, Instagram, Twitter