Many nonprofits are seizing the opportunity to raise funds through active capital, endowment or comprehensive campaign funds now more than ever, thanks to the strong US economy and an increase in donations. In fact, nearly 50% of nonprofit executives said their organizations had structured capital campaigns last year, compared with just 20% five years ago, according to those polled in a recent Nonprofit Research Collaborative survey. 

These capital campaigns helped total charitable donations rise to a record $390 billion in 2016, which has ultimately sustained the respective organization’s activities and will continue to do so in the future.

While the benefits of such campaigns are evident, there is a significant amount of planning and collaboration necessary to ensure their success. In the excitement of the initial development process, accounting and tax considerations may be overlooked. However, anticipating and addressing potential tax, accounting policy and transaction challenges before the campaign is underway can save your organization time and stress down the road.

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