Harnessing AI: Unlocking Opportunities for Not-for-Profits of All Sizes
Each year, the world loses roughly 32 million acres of natural forest, an area comparable to the entire state of Florida. Much of this destruction results from illegal logging, contributing to climate change and …
Each year, the world loses roughly 32 million acres of natural forest, an area comparable to the entire state of Florida. Much of this destruction results from illegal logging, contributing to climate change and increasing the likelihood of diseases spreading between animals and humans. Addressing deforestation is a complex, global challenge, but one innovative not-for-profit has demonstrated that technology and creativity can offer a path forward.
Protecting Forests Through AI and Sound
Rainforest Connection, a not-for-profit based in Katy, Texas, developed a unique approach that leverages artificial intelligence (AI) and audio technology to combat illegal deforestation. Their system uses solar-powered recorders to continuously capture the natural sounds of the forest. These recordings are uploaded to the cloud, where an AI model analyzes the data to detect and even predict illegal logging activity.
What makes this approach groundbreaking is its predictive power. The AI can forecast where illegal logging is likely to occur up to five days in advance, with an accuracy rate of 96%. Experts estimate that widespread adoption of similar technologies could reduce illegal logging by as much as 35% globally.
AI’s Expanding Role in Social Good
Rainforest Connection’s work is just one example of how AI can be harnessed for positive change. The Nature Conservancy has deployed AI and camera systems to detect invasive species before they spread. The American Red Cross integrates AI and satellite imagery to assess disaster-related infrastructure damage. Similarly, the International Fund for Agricultural Development (IFAD) uses AI to analyze data, improve insights, and more effectively target assistance to vulnerable communities.
The potential applications of AI for mission-driven organizations are vast. As the technology evolves faster than any innovation before it, not-for-profits have a remarkable opportunity to responsibly integrate AI to enhance impact, improve efficiency, and strengthen fundraising and outreach.
Understanding AI Adoption in the Not-for-Profit Sector
Despite its potential, AI adoption among not-for-profits remains limited. A survey conducted by Google for Not-for-Profits, which included responses from 4,600 not-for-profit professionals, revealed that while 80% of managers believe AI could apply to their work, two-thirds identified a lack of familiarity as the primary barrier to adoption. Many organizations use AI tools for individual tasks but have not yet implemented them organization-wide.
Larger organizations may have more resources to explore AI, but smaller not-for-profits can also benefit significantly. Generally, not-for-profits can approach AI integration in two ways:
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Using Software-as-a-Service (SaaS) AI-powered solutions to enhance specific functions.
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Building custom AI tools and ecosystems to address mission-critical challenges.
Using Software-as-a-Service AI
The growing marketplace of AI-enabled SaaS platforms offers accessible entry points for not-for-profits. These tools can optimize operations, strengthen donor engagement, and reduce manual workloads, all without requiring specialized technical expertise or major investments.
Examples include:
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Donor and relationship management: Platforms like HubSpot and Salesforce offer AI-powered CRM systems that help automate fundraising efforts, personalize communications, and track donor interactions more effectively.
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Content creation and marketing: Tools such as Jasper AI, Writesonic, and Surfer SEO assist in generating professional content and improving visibility across digital channels.
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Productivity and collaboration: Applications like Notion, Otter, Coda, and Taskade increase organizational efficiency by streamlining workflows and documentation.
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Communication and coordination: AI-enhanced collaboration platforms such as Slack and Microsoft Teams help improve real-time engagement and information sharing.
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Project management: Solutions like Asana and Trello integrate AI features that automate task prioritization and project tracking.
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Creative design and media: Tools such as Canva, Adobe Firefly, Runway, and Pictory AI make it easier to develop visual and video materials for campaigns.
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Generative AI assistants: Platforms like ChatGPT, Microsoft Copilot, Google Gemini, Meta AI, and Anthropic’s Claude provide intuitive chat interfaces that function as personal digital assistants, helping staff with research, communication, and administrative work.
By adopting these tools, even small and mid-sized not-for-profits can modernize operations, conserve resources, and improve overall efficiency. However, successful implementation requires adequate training and thoughtful change management to ensure staff are comfortable and confident using these technologies.
Building Custom AI Solutions to Maximize Impact
For organizations ready to take a deeper step into AI integration, building custom solutions can transform how they deliver their missions. These initiatives often involve tailoring AI applications or combining existing tools to address unique challenges faced by the organization.
Step 1: Define the Problem Creatively
The foundation of any successful AI initiative is identifying the right problem to solve. By rethinking traditional approaches, staff can discover innovative use cases where AI can make a meaningful difference. This stage requires open-mindedness, questioning long-standing processes, and imagining how they might evolve with technology. The creativity behind this step often determines the level of impact achieved.
Step 2: Experiment and Test
Once potential applications are identified, organizations should start small. A culture of experimentation allows teams to test ideas through low-cost proof-of-concept projects before committing extensive resources. This iterative approach helps refine solutions, uncover new insights from data, and reduce the risks of full-scale implementation.
Step 3: Engage Technical Expertise
Smaller not-for-profits may not have in-house data scientists or AI engineers, but they can still access technical talent in creative ways:
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Volunteers: Recruit volunteers with AI or data backgrounds to assist in developing proof-of-concept solutions.
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Student partnerships: Collaborate with universities through capstone projects, internships, or student innovation clubs interested in real-world problem-solving.
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Pro bono partnerships: Some technology firms are open to supporting not-for-profit initiatives by donating staff time or expertise, particularly when there’s clear alignment with the organization’s mission.
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Hackathons: Hosting or joining hackathons can help generate innovative solutions quickly while building connections with skilled technologists and potential long-term collaborators.
Before engaging technical partners, it’s essential to define the project’s scope, objectives, and data requirements to ensure feasibility and alignment with organizational goals.
Establishing Responsible AI Policies
As not-for-profits explore AI, it’s important to implement policies that promote ethical, transparent, and mission-aligned use of technology. Larger organizations may formalize comprehensive AI governance frameworks, while smaller ones can start by setting clear boundaries for acceptable use.
A responsible AI policy typically includes:
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Ethical guidelines and accountability measures.
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Compliance with regulatory and privacy requirements.
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Safeguards for data security and confidentiality.
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Defined risk management protocols.
Such policies foster trust among stakeholders and ensure that innovation aligns with organizational values. They also promote awareness and training, helping staff understand both the capabilities and limitations of AI systems.
An organization’s approach to AI should reflect its culture and tolerance for risk. Some may adopt a cautious, conservative stance, while others embrace experimentation. A well-designed policy provides flexibility while maintaining integrity and transparency.
Managing Change and Designing for People
As organizations grow in their AI journey, managing the human side of technological transformation becomes essential.
Change management ensures that staff adopt and effectively use new tools. AI solutions often require shifts in workflow or responsibilities, and employees may initially be skeptical of their outcomes. Successful change management includes transparent communication, clear expectations, and hands-on training to build trust in the new systems.
Human-factored design is equally critical. AI tools should complement human judgment, not replace it. Designing systems that are intuitive, ethical, and accessible helps ensure staff can override or adjust AI recommendations when necessary. Involving end-users early in the design process leads to higher adoption rates and better outcomes.
Looking Ahead
Artificial intelligence is becoming more visible across the not-for-profit sector, and many organizations are beginning to explore how these tools might fit into their work. While AI is still developing, staying aware of emerging trends can help leaders make thoughtful, informed decisions as the landscape evolves.
At De Boer, Baumann & Company, we continue to follow developments that may affect the not-for-profit community. Understanding which changes are relevant, which can be set aside, and how new tools may influence operations in the future can help organizations stay adaptable and prepared.
To read the full article by Sajit Joseph, please visit The NonProfit Times.
Employee Spotlight: Jon Coffey, CPA
Since joining De Boer, Baumann & Company as an intern in 2012, Jon Coffey has built a remarkable career defined by dedication, curiosity, and a drive to make a difference. Over the years, …
Best Practices for Internal Controls in Not-For-Profit Organizations
For Not-For-Profit organizations, every dollar counts—and so does every decision. Strong internal controls are essential to ensuring that funds are managed responsibly, risks are minimized, and your organization’s mission stays on track. Internal controls …
For Not-For-Profit organizations, every dollar counts—and so does every decision. Strong internal controls are essential to ensuring that funds are managed responsibly, risks are minimized, and your organization’s mission stays on track.
Internal controls aren’t just about preventing fraud or errors—they’re about establishing a culture of transparency and accountability that builds trust with donors, board members, and the community. Whether your Not-For-Profit organization is large or small, implementing sound control practices can safeguard assets and strengthen long-term sustainability.
Why Internal Controls Matter
Not-For-Profits operate under unique financial pressures and public expectations. Donors, grantors, and regulatory bodies all expect accurate reporting and responsible stewardship of resources. Internal controls provide the framework to meet those expectations.
An effective system of internal controls helps your organization:
- Protect assets from loss or misuse
- Ensure the accuracy of financial reporting
- Promote compliance with laws and funding requirements
- Improve operational efficiency through clear procedures
- Build confidence among stakeholders and funding partners
Ultimately, strong internal controls help ensure your Not-For-Profit can continue to fulfill its mission with integrity and consistency.
Key Components of an Effective Internal Control System
While every Not-For-Profit’s operations are unique, the following components are essential to a well-designed internal control framework:
1. Segregation of Duties
One of the most effective safeguards against errors or misuse of funds is separating responsibilities among multiple people. For example, the person who authorizes a payment should not also handle check signing or reconciliation. Even in small organizations, rotating duties or adding periodic oversight by board members can strengthen accountability.
2. Clear Authorization and Approval Processes
Establish written policies outlining who has the authority to approve transactions, sign checks, or enter into contracts. Consistent approval processes ensure decisions are reviewed appropriately and in line with your organization’s financial policies.
3. Accurate Recordkeeping and Documentation
Maintain detailed records for all financial activities, including invoices, receipts, and grant documentation. Digital accounting systems and cloud-based tools can simplify recordkeeping and improve accuracy, making it easier to track spending and respond to audit inquiries.
4. Regular Reconciliations and Reviews
Reconcile bank accounts, credit cards, and grant funds regularly to detect discrepancies early. Monthly or quarterly financial reviews by leadership or the board can help identify issues before they escalate.
5. Oversight by the Board and Finance Committee
Active oversight from the board of directors or a dedicated finance committee is critical. Reviewing financial statements, approving budgets, and evaluating risk management policies are all part of maintaining strong governance. Board involvement reinforces transparency and demonstrates accountability to external stakeholders.
6. Use of Technology and Access Controls
Implement accounting software with built-in security features, such as user access controls and audit trails. Limiting access to sensitive financial systems reduces the risk of unauthorized activity and ensures data integrity.
7. Continuous Training and Improvement
Internal controls are only as strong as the people who use them. Provide ongoing training to staff and volunteers on financial policies, reporting requirements, and ethical standards. Regularly review and update policies as your organization grows or as regulations change.
Building a Culture of Accountability
The most successful internal control systems are supported by an organizational culture that values integrity and transparency. When leadership models ethical behavior and open communication, staff are more likely to follow suit.
Encourage employees and volunteers to raise concerns or suggest improvements to existing procedures. A proactive, collaborative approach to accountability fosters trust—both internally and with the communities you serve.
How De Boer, Baumann & Company Can Help
At De Boer, Baumann & Company, we understand that strong internal controls are vital to the success and sustainability of Not-For-Profit organizations. Our experienced team partners with Not-For-Profits to assess current systems, identify areas for improvement, and design practical, effective control frameworks that align with your mission.
Audit Requirements and Compliance for Not-For-Profits
For Not-For-Profit organizations, transparency and accountability are the foundation of trust. Whether your funding comes from grants, donations, or community partnerships, stakeholders expect assurance that resources are being managed responsibly. A well-executed audit not …
For Not-For-Profit organizations, transparency and accountability are the foundation of trust. Whether your funding comes from grants, donations, or community partnerships, stakeholders expect assurance that resources are being managed responsibly. A well-executed audit not only fulfills regulatory requirements—it also demonstrates your organization’s commitment to integrity and good governance.
If your Not-For-Profit is preparing for its first audit or looking to strengthen existing compliance practices, understanding what’s required and how to prepare can help you navigate the process with confidence.
Why Audits Matter for Not-For-Profits
Audits provide an independent, objective review of your organization’s financial health. Beyond satisfying external requirements, they offer valuable insights that can help you improve internal processes, strengthen financial management, and enhance your reputation with funders.
A thorough audit can help your organization:
- Reinforce donor confidence through verified financial reporting
- Identify opportunities to improve internal controls and efficiency
- Ensure compliance with funding agreements and state or federal laws
- Provide leadership and the board with reliable data for decision-making
Many funding agencies and state regulators require audits once certain thresholds are met. Even when not required, voluntary audits can elevate your organization’s credibility and readiness for future growth.
Understanding Audit Requirements
Audit requirements for Not-For-Profits vary based on size, revenue, and funding sources. Below are some key areas to be aware of.
Federal and State Thresholds
Under the Uniform Guidance, organizations that expend $1 million or more in federal funds during a fiscal year are required to undergo a Single Audit. This audit examines both the organization’s financial statements and its compliance with applicable federal program requirements. (Note: The threshold increased from $750,000 to $1 million for fiscal years ending on or after September 30, 2025.)
Michigan State Requirements
At the state level, requirements vary by jurisdiction. In Michigan, charitable organizations that solicit contributions from the public must register with the Attorney General’s Charitable Trust Section. Updated thresholds now require:
- Audited financial statements for organizations with annual gross receipts exceeding $550,000, or total assets exceeding that amount.
- Reviewed or audited financial statements for organizations with gross receipts between $300,000 and $550,000.
- Organizations below these thresholds may submit compiled financial statements or other required filings.
When calculating total annual gross receipts, the IRS notes that “contributions in the form of grants or similar payments from local, state, or federal government sources, as well as foreign governments,” are excluded (Form 990 instructions). This distinction can make a significant difference in determining whether your organization meets the audit threshold.
Michigan also allows a one-time audit waiver, offering limited flexibility for qualifying organizations that would otherwise be required to submit audited financials.
Understanding both the updated federal Single Audit threshold and Michigan’s revised state-level audit requirements enables Not-For-Profits to plan proactively, allocate resources appropriately, and ensure compliance with all applicable financial reporting regulations.
Grant and Donor Requirements
Many grantors, particularly government agencies and private foundations, require audited financial statements as part of the grant application or renewal process. Meeting these expectations can position your organization for continued funding and demonstrate sound fiscal stewardship.
Board or Bylaw Provisions
Some Not-For-Profits choose to include audit requirements in their bylaws or internal policies. This proactive approach encourages consistent oversight and builds trust with stakeholders and community partners.
Preparing for a Successful Audit
A successful audit starts long before auditors arrive. By maintaining strong financial practices throughout the year, your organization can minimize stress and ensure a smooth process.
Keep Records Organized
Accurate, up-to-date financial records are essential. Maintain clear documentation for all transactions—receipts, invoices, payroll records, grant agreements, and bank reconciliations. Organized records allow auditors to verify information quickly and efficiently.
Evaluate Internal Controls
Strong internal controls protect your organization from errors and misuse of funds. Review your approval processes, segregation of duties, and documentation practices regularly to ensure they remain effective.
Communicate Early and Often
Reach out to your auditor early in the year to discuss timelines, expectations, and any changes in operations or funding. Clear communication prevents surprises and helps both parties stay aligned throughout the process.
Track Grant and Program Compliance
Maintain detailed records of how grant funds are used and ensure that all reporting requirements are met. Compliance documentation not only satisfies funders but also demonstrates your organization’s commitment to transparency and accountability.
Building a Culture of Accountability
Compliance isn’t just about passing an audit—it’s about building an organizational culture that values accuracy, transparency, and responsibility. Regular policy reviews, staff training, and active board engagement can help your Not-For-Profit organization stay compliant and resilient.
When accountability becomes part of your culture, your organization is better equipped to adapt to evolving regulations and continue delivering on its mission.
How De Boer, Baumann & Company Can Help
At De Boer, Baumann & Company, we understand the challenges and opportunities that come with running a Not-For-Profit organization. Our dedicated team provides audit and assurance services designed specifically for the Not-For-Profit sector, combining technical expertise with a deep appreciation for mission-driven work.
From preparing for your next audit to strengthening internal controls and meeting compliance standards, we partner with you to build confidence in your financial management practices—so you can focus on what truly matters: serving your community and advancing your mission.
Occupations Qualified for Tip Deduction Released
On September 2, 2025, the Treasury Department released a draft list of 68 occupations eligible for the new “no tax on tips” deduction. This deduction is part of the “One Big Beautiful Bill Act,” …
On September 2, 2025, the Treasury Department released a draft list of 68 occupations eligible for the new “no tax on tips” deduction. This deduction is part of the “One Big Beautiful Bill Act,” signed into law on July 4, 2025, and applies to federal income taxes for the 2025—2028 tax years.
The deduction is available for a maximum of $25,000 in qualifying tips per person, per year. It is structured as a “below-the-line” deduction, meaning it is available to taxpayers who take the standard deduction, but is not used to compute adjusted gross income (AGI).
Here is the Treasury’s draft list of occupations:
Beverage & Food Service:
- Bartenders
- Wait staff
- Food servers, non-restaurant
- Dining room and cafeteria attendants and bartender helpers
- Chefs and cooks
- Food preparation workers
- Fast Food and Counter Workers
- Dishwashers
- Host staff, restaurant, lounge, and coffee shop
- Bakers
Entertainment and Events:
- Gambling dealers
- Gambling change persons and booth cashiers
- Gambling cage workers
- Gambling and sports book writers and runners
- Dancers
- Musicians and singers
- Disc jockeys (except radio)
- Entertainers and performers
- Digital content creators
- Ushers, lobby attendants and ticket takers
- Locker room, coatroom and dressing room attendants
Hospitality and Guest Services:
- Baggage porters and bellhops
- Concierges
- Hotel, motel and resort desk clerks
- Maids and housekeeping cleaners
Home Services:
- Home maintenance and repair workers
- Home landscaping and groundskeeping workers
- Home electricians
- Home plumbers
- Home heating/air conditioning mechanics and installers
- Home appliance installers and repairers
- Home cleaning service workers
- Locksmiths
- Roadside assistance workers
Personal Services:
- Personal care and service workers
- Private event planners
- Private event and portrait photographers
- Private event videographers
- Event officiants
- Pet caretakers
- Tutors
- Nannies and babysitters
Personal Appearance and Wellness:
- Skincare specialists
- Massage therapists
- Barbers, hairdressers, hairstylists and cosmetologists
- Shampooers
- Manicurists and pedicurists
- Eyebrow threading and waxing technicians
- Makeup artists
- Exercise trainers and group fitness instructors
- Tattoo artists and piercers
- Tailors
- Shoe and leather workers and repairers
Recreation and Instruction:
- Golf caddies
- Self-enrichment teachers
- Recreational and tour pilots
- Tour guides and escorts
- Travel guides
- Sports and recreation instructors
Transportation and Delivery:
- Parking and valet attendants
- Taxi and rideshare drivers and chauffeurs
- Shuttle drivers
- Goods delivery people
- Personal vehicle and equipment cleaners
- Private and charter bus drivers
- Water taxi operators and charter boat workers
- Rickshaw, pedicab, and carriage drivers
- Home movers
The requirements for the OBBB tip exclusion are a set of temporary tax deductions for qualified tipped workers, available for tax years 2025 through 2028. The deduction is taken on an individual’s tax return and is subject to income limitations.
Eligibility Requirements: To be eligible for the deduction, a worker must meet the following criteria:
- Be a qualified tipped worker: Must be an employee or independent contractor in an occupation that customarily and regularly received tips before 2025. See the draft list of qualifying occupations.
- Have qualified tips: The tips must be voluntarily paid by a customer. This includes tips received in cash, charged on a credit card, or from a tip-sharing arrangement. Mandatory service charges are not eligible.
- Properly report tips: The tips must be reported to the IRS on either a Form W-2 (for employees) or Form 1099 (for independent contractors).
- File jointly if married: If married, the couple must file a joint tax return to claim the deduction.
- Provide a Social Security Number (SSN): Anyone claiming the deduction must include their SSN on their tax return.
Deduction Limitations: The maximum deduction is limited and phases out for high-income earners:
- Maximum deduction: The maximum annual deduction is $25,000.
- Income phase-out: The deduction is gradually reduced for taxpayers with a modified adjusted gross income (MAGI) over a certain amount:
- Single filers: The deduction begins to phase out for MAGI over $150,000.
- Married filing jointly: The deduction begins to phase out for MAGI over $300,000.
Other Considerations:
- Does not apply to payroll taxes: While tips are deductible from the worker’s income when figuring their federal income tax, they are still subject to Social Security and Medicare taxes or self-employment tax in the case of independent contractors.
- Temporary provision: The tip deduction is a temporary measure, scheduled to expire after December 31, 2028.
- Not tax-free: This is a deduction, not an exemption. So, the worker will still have to report all tip income, which will then be reduced by the deduction amount.
- State tax implications: The effect on state income taxes will depend on the worker’s state’s tax laws.
In conclusion, understanding which occupations qualify for tip deductions is essential for both employees and employers seeking to maximize their tax benefits. By staying informed about the specific criteria that define qualified tips and knowing how different occupations fit into this framework, individuals can ensure compliance while optimizing their tax strategies. As tax laws continue to evolve, it remains crucial for stakeholders to stay updated on legislative changes and seek professional advice as needed to navigate the complexities of tip income and deductions effectively.
Contact our office if you have questions or need assistance.
Understanding the Estate and Gift Tax Changes Under the One Big Beautiful Bill Act
The One Big Beautiful Bill Act (OBBBA) recently introduced substantial changes in the realm of estate and gift tax planning. These changes present new opportunities for taxpayers. The legislation modifies critical aspects of the …
The One Big Beautiful Bill Act (OBBBA) recently introduced substantial changes in the realm of estate and gift tax planning. These changes present new opportunities for taxpayers. The legislation modifies critical aspects of the estate tax exclusion, making long-term planning both more urgent and more strategic for affluent taxpayers.
Basics of the Estate and Gift Tax Exclusion: The estate and gift tax exclusion is the amount that can be excluded from federal estate tax. If the value of a decedent’s estate is less than the exclusion amount for the year of death ($13.99 million in 2025), no federal estate tax is owed and no estate tax return is required, but in some cases filing an estate tax return may still be prudent (see Benefits of the Portability Election below).
If the value of gifts one individual gives to another person during a year is greater than that year’s annual gift tax exclusion ($19,000 for 2025), the individual making the gift must file a gift tax return (IRS Form 709), but often will owe no gift tax. This is because the gift giver can dip into their combined lifetime estate and gift tax exclusion and apply it to the excess gift amount. When the individual passes away, a reconciliation must be done to see if the combination of excess gifts and the value of the individual’s estate exceeds the lifetime estate and gift tax exclusion, which varies from year to year. This is done on IRS Form 706.
Estate and Gift Tax Exclusions: Key Adjustments: The OBBBA has effectively “permanently” set the estate and gift tax exclusion at $15 million per individual starting in 2026, adjusted for inflation in the following years. This decision is a continuation of the trend initiated by the Tax Cuts and Jobs Act of 2017 (TCJA), which doubled the previous $5 million exclusion to $10 million, again indexed for inflation, but only through 2025. Prior to the OBBBA, the expectation was that this exclusion would drop significantly to about $7 million, essentially rolling back to the pre-TCJA levels, adjusted for inflation. However, with the OBBBA’s intervention, a more favorable scenario for high-net-worth individuals has been preserved.
This adjustment helps taxpayers engage in more precise planning for their estates, allowing them to pass on more wealth without triggering tax obligations. It offers a level of stability and predictability that can be pivotal in both long-term estate planning and immediate asset management strategies.
Impact on Generation-Skipping Transfers: In tandem with the estate and gift tax exclusions, the Generation-Skipping Transfer (GST) tax exclusion has also been aligned. The GST tax is a federal tax levied on transfers that skip a generation, such as from grandparents directly to grandchildren, bypassing the parents. Under OBBBA, the GST exclusion mirrors the estate and gift tax exclusion, set at $15 million from 2026 and indexed thereafter. This move curbs the potential tax-free transfer across generations, ensuring that wealth passed in such a manner is adequately taxed while still allowing for strategic planning opportunities to mitigate tax exposure.
Benefits of the Portability Election: An often-overlooked strategy for married couples in estate planning involves the portability election, which can be particularly beneficial upon the death of the first spouse. This election allows the surviving spouse to utilize any unused portion of the deceased spouse’s estate and gift tax exclusion. By leveraging this mechanism, couples can effectively maximize the tax exclusions available to them.
For example, if the estate of a spouse who dies in 2026 does not use their full $15 million exclusion, the remainder can transfer to the surviving spouse’s exclusion, potentially doubling the couple’s tax-free transfer capability. This process can significantly alleviate the financial burden on the surviving spouse and provide more flexibility and security in managing and distributing their estate as desired. It is an essential tool in a comprehensive estate planning strategy, particularly under the current tax environment shaped by the OBBBA.
To take advantage of this election, the executor of the estate of the first spouse to die must file a timely Form 706, even if there is no estate tax owed.
Strategic Implications for Wealth Management:The changes introduced by the OBBBA necessitate a fresh look at existing estate plans. Taxpayers who had previously braced themselves for a reversion to lower exclusion thresholds now have the opportunity to further leverage the increased exclusions in their planning strategies. This means reevaluating current plans to make the most of the permanent $15 million exclusion cap, aligning it with long-term financial goals and family wealth aspirations.
For estate planning professionals, the OBBBA offers both a challenge and an opportunity. The permanence of these provisions requires planners to incorporate them into dynamic and flexible estate plans that can withstand the test of inflation, economic fluctuations, and potential future legislative changes. Deploying gifts, trusts, and other tools efficiently will be critical in optimizing these tax benefits.
Conclusion: The estate and gift tax landscape, shaped by the One Big Beautiful Bill Act, presents complex but rewarding planning opportunities. With increased exclusions, aligned GST provisions, and the beneficial portability election, taxpayers and estate planners can navigate these waters effectively to ensure wealth preservation across generations. As such, now is an ideal time for affluent individuals to consult with their tax advisors and estate planners to reassess and optimize their strategies.
Uncertainty Is the New Normal: How Small Businesses Can Stay Steady
The Economy Feels Mixed — and That’s Okay If you’ve read the headlines lately, you know the signals are…confusing. GDP is strong. Interest rates may be heading lower. Inflation is easing, but not …
The Economy Feels Mixed — and That’s Okay
If you’ve read the headlines lately, you know the signals are…confusing.
- GDP is strong.
- Interest rates may be heading lower.
- Inflation is easing, but not “gone.”
- Tariffs are making imports more expensive.
So is the economy strong? Slowing? Recovering? The truth is—it depends on who you ask. And for small business owners, that fog of uncertainty is the hardest part.
Uncertainty isn’t just an economic headline. It’s what keeps you up at night, wondering: Do I hire? Do I wait? Do I raise prices or hold steady?
Why Uncertainty Hurts More Than “Bad News”
When the outlook is unpredictable, planning becomes a guessing game. You can’t control the headlines, but you can control how your business responds. That’s where steady cash flow management, flexible budgets, and advisory support change everything.
How Small Businesses Can Adapt in Uncertain Times
1. Get a Grip on Cash Flow
Cash flow is your oxygen. Monitor it weekly, not quarterly. Use forecasting tools or dashboards that flag red zones before they become crises.
2. Build Flexible Budgets
Rigid budgets snap in unpredictable markets. Scenario planning—“what if tariffs rise another 10%?”—lets you prepare before costs hit.
3. Diversify Where You Can
From suppliers to revenue streams, diversification lowers risk. Even small shifts—like adding a second vendor—protect your business against shocks.
4. Tier Your Spending Controls
Not every dollar deserves equal treatment:
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Must control tightly: payroll, rent, core services.
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Flexible: marketing, equipment, travel.
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Growth bets: new hires, product launches.
This gives you a clear plan for what to trim (and what to protect) if the ground shifts.
Opportunity Inside the Fog
Uncertainty doesn’t only create risk—it opens doors. When competitors freeze, you can:
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Negotiate better supplier terms.
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Attract talent that others are too hesitant to hire.
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Double down on client loyalty while others cut service.
Strong planning plus calm execution turns uncertainty into opportunity.
The Big Picture: SMB Resilience Wins
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Lower rates and moderating inflation could spark growth.
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Small business optimism remains cautiously strong.
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With smart financial controls, you’ll be positioned to adapt faster than competitors.
Uncertainty isn’t going away. But with the right systems in place, it doesn’t have to run your business.
Next Step
Talk to our firm about building cash flow cushions, forecasting tools, and financial controls tailored to your business. With a plan in place, you’ll feel calmer, more confident, and better prepared for whatever comes next.
Because clarity—even in uncertain times—is a competitive advantage.
Transitioning from Traditional to Digital Accounting Systems on the Farm
The agricultural industry is evolving, and farms are increasingly adopting digital technologies to improve efficiency, accuracy, and decision-making. One of the most significant changes many farms face is transitioning from traditional, manual accounting methods …
The agricultural industry is evolving, and farms are increasingly adopting digital technologies to improve efficiency, accuracy, and decision-making. One of the most significant changes many farms face is transitioning from traditional, manual accounting methods to modern digital accounting systems. This shift can transform how financial information is managed, reported, and utilized to drive business growth.
Why Make the Switch to Digital Accounting?
Traditional accounting often involves paper-based records, spreadsheets, and manual data entry, which can be time-consuming, error-prone, and difficult to scale. Digital accounting systems offer several advantages:
- Increased accuracy through automated calculations and data entry
- Real-time financial visibility for faster, informed decision-making
- Streamlined processes that save time on bookkeeping and reporting
- Improved compliance with tax regulations and recordkeeping requirements
- Better integration with other farm management tools and financial institutions
Steps to a Successful Transition
- Assess Your Current Processes
Identify pain points in your current accounting system. Are you struggling with data accuracy, reporting delays, or time-consuming manual tasks? Understanding these challenges will help you select the right digital solution. - Choose the Right Software
There are numerous accounting software options tailored to agriculture, including QuickBooks, Xero, and specialized farm management platforms. Look for systems that:
- Support your farm’s specific financial and operational needs
- Integrate with payroll, inventory, and tax reporting
- Are user-friendly for you and your staff
- Plan for Data Migration
Moving from paper or spreadsheets to digital systems requires careful data transfer. Clean and organize your existing records to avoid transferring errors. Consider professional help to ensure a smooth migration. - Train Your Team
Ensure that all users understand the new system’s features and workflows. Training reduces errors and maximizes the benefits of digital tools. - Establish New Internal Controls
Digital systems can enhance internal controls by automating approvals, audit trails, and segregation of duties. Update your policies accordingly.
Overcoming Common Challenges
Transitioning to digital accounting is not without challenges:
- Resistance to change: Some farm staff may be hesitant. Emphasize benefits and provide support.
- Initial costs and setup time: Investing time and resources upfront pays off in efficiency gains.
- Data security concerns: Choose reputable software with strong security measures and backup capabilities.
The Impact on Farm Management
Digital accounting provides more than just improved bookkeeping. It enables farmers to:
- Monitor cash flow and profitability in real time
- Generate timely financial reports and key performance indicators
- Simplify tax preparation and compliance
- Identify cost-saving opportunities
- Support succession planning and long-term growth strategies
How De Boer, Baumann & Company Can Support Your Transition
De Boer, Baumann & Company helps farms navigate the complexities of moving to digital accounting. From selecting the right software and managing data migration to training your team and optimizing financial processes, our experts provide tailored support designed for agricultural operations. Partner with us to modernize your accounting system and empower your farm with better financial insight and control.