By Katie Eder/NJBIZ
April 12, 2012
With dwindling resources and greater demand for transparency from the Internal Revenue Service and funding sources, nonprofits in New Jersey will need to invest in strategic planning and outsource accounting and technology operations to improve their financial performance in 2012, a nonprofit services executive with The Mercadien Group said.
"One of the things we remind our nonprofit clients of is that nonprofit is a tax status, not a business model, and they need to be making sure that donors and funding sources understand that even though they are a charity, they are still a business," said Sherise D. Ritter, managing director of Mercadien, who chairs the firm's nonprofit services group. "No one wants to fund general and administrative expenses, but you can't have a business without them. A donor to Habitat for Humanity wants to see the whole dollar of every dollar going to building houses, but Habitat for Humanity can't function without those general departments."