How Nonprofits Can Save on OpenAI’s ChatGPT Subscriptions: A Guide to Accessing Discounts
How Nonprofits Can Save on OpenAI’s ChatGPT Subscriptions: A Guide to Accessing Discounts
As nonprofits continue to seek innovative ways to optimize their operations and improve productivity, AI tools like OpenAI’s ChatGPT have proven to be invaluable. From streamlining administrative tasks to enhancing communication efforts, ChatGPT can revolutionize the way nonprofits operate.
The best part? Nonprofits can access significant discounts on OpenAI’s ChatGPT subscriptions. Here’s everything you need to know about how your nonprofit can save money while leveraging this powerful tool.
Why Nonprofits Should Consider ChatGPT
Before we dive into how nonprofits can save, let's first highlight the benefits of using ChatGPT for your organization:
Automate Repetitive Tasks: Save time by automating repetitive tasks like data entry, email responses, and report generation.
Enhanced Communication: Improve communication with stakeholders and donors, crafting personalized messages in minutes.
Support Content Creation: Easily generate blog posts, social media content, and newsletters to engage with your community.
How Nonprofits Can Access Discounts on ChatGPT
OpenAI offers nonprofits exclusive discounts on the ChatGPT Team plan, helping organizations maximize their impact without breaking the bank. Here’s how your nonprofit can get started:
Step 1: Check Eligibility
To qualify for the nonprofit discount, your organization must meet the following criteria:
Nonprofit Status: Your organization must be officially recognized as a nonprofit. This means you have a tax-exempt status, such as 501(c)(3) in the U.S.
Non-eligibility for certain institutions: Please note that academic, medical, religious, or governmental institutions are not eligible for this discount.
Step 2: Apply for the Nonprofit Discount
Once you confirm that your nonprofit organization qualifies, the next step is to apply for the discount. Here’s how:
Visit OpenAI for Nonprofits: Go to the OpenAI for Nonprofits page to start the application process.
Submit Your Information: Fill out the form, providing details about your nonprofit organization and verifying your tax-exempt status.
Wait for Approval: After submitting your application, OpenAI will review it. Once approved, your nonprofit will be eligible for a 20% discount on the ChatGPT Team plan.
Step 3: Enjoy the Discount
Once approved, the discount will be automatically applied to your nonprofit's subscription. You’ll enjoy the same benefits as the regular ChatGPT Team plan, but at a reduced price of $20 per user per month when billed annually (compared to the standard $30 per user per month). This price is ideal for organizations looking to get more out of their AI-powered tools without spending a fortune.
For Larger Nonprofits: Access Even Bigger Savings
Larger nonprofits with higher demands can access an even better deal. OpenAI offers up to 50% off on the Enterprise plan for eligible large-scale nonprofit organizations. To explore this option, simply contact OpenAI’s sales team to discuss your nonprofit’s specific needs and receive a custom discount.
Why This Matters for Nonprofits
In a nonprofit setting, every dollar counts. By utilizing OpenAI’s AI-powered tools at a discounted rate, your nonprofit can:
Free up valuable time and resources for mission-driven work.
Increase efficiency and reduce operational costs.
Focus on serving your community rather than spending hours on manual administrative tasks.
Getting Started
Ready to take advantage of this discount? Here are the steps to get started:
Visit OpenAI for Nonprofits and apply for the discount.
If you’re a larger nonprofit, reach out to OpenAI’s sales team for a custom Enterprise discount.
Once approved, enjoy the benefits of a more productive, AI-powered nonprofit at a reduced cost.
Final Thoughts
By leveraging OpenAI’s ChatGPT and taking advantage of the nonprofit discount, your organization can unlock the full potential of AI while saving money. Whether you’re automating tasks, generating content, or improving communication, ChatGPT is a valuable tool that can enhance your nonprofit’s operations.
Start applying today and discover how AI can help your nonprofit thrive!
Are admin expenses and overhead rate the same thing?
Summary [TLTR]: Admin, when talking about Functional Expense allocations may not coincide with the Term “overhead” use by a funding source. You need to find out what the grant application or funder means by Overhead.
First and foremost, in the nonprofit world, is the functional allocation percentages. You see these functional expense breakouts on your IRS Form 990 and your financial statements. Program Expense, Management & General (aka Admin) and Fundraising. There is a slew of guidance on breaking these out in GAAP (Generally Accepted Accounting Principles) and by the IRS (form 990 instructions-revenue rulings etc.) This is the Percentage the “Charity Rating Agencies” use. Funders and grantors use these agencies to help determine the contributions or grants they are making. You have heard of GuideStar, Charity Navigator, Charity Watch etc. As with all allocations there are a lot of assumptions and flexibility (i.e. how much of Salary, Rent, other expense should be in Program vs. Admin). In smaller nonprofits, much is allocated because everyone does everything. You know what I mean…
When dealing with some grants (especially government grants) or in some other places, they may ask about overhead percentage (or even use the would Admin, but in a different light). This really could vary from thing to thing. But this Overhead percentage and the Function Expense allocation (see above) may not coincide. For example, part of your occupancy (rent) will definitely be in Program Expenses. But a specific grant or government funder may consider occupancy 100% overhead. Overhead, in some circumstances, really pulls out anything that is not a very direct cost. But you have to look at the specifics of whoever is asking. There could still be allocations. But different. Maybe a grant allows the salary of a specific person (executive director) to be max 10% allocated to program (and the rest be Overhead).
Since Overhead is not a standard term, you must look at the definition that the specific grant is using. A good tool to figure out what a specific funder means by overhead is to find the report you will send them (they will probably require a quarterly or annual report of some sort). That is what they will look at to see if you are meeting the requirements. Find that and the instructions. That will explain what overhead is in that case.
This article was originally part of response to a question in the r/nonprofit sub reddit. See all our reddit responses here JV CPA- Reddit Questions Answered
WHAT TO EXPECT DURING A CPA AUDIT
This list from NYS that was made specially for “Fire Districts” (FD) is actually pretty good for audits in general.
https://www.osc.ny.gov/files/local-government/publications/pdf/cpaauditprocess.pdf
WHAT TO EXPECT DURING A CPA AUDIT
Planning Phase:
I. Auditors will ask you to sign an engagement letter summarizing terms and
conditions of audit, including:
a. Method of accounting - Accrual versus cash basis
b. Generally accepted auditing standards
c. Government auditing standards
d. Fees and payment terms
II. Preliminary planning meeting with management/financial
personnel
a. Gather historical documents
i. Charter, By-Laws, etc.
b. Gather information regarding internal controls
i. Cash receipts
ii. Cash disbursements
iii. Payroll
iv. Property and equipment acquisition
v. Other
c. Communication with FD Board and/or Finance Committee
d. Discussion about fraud risk and fraud risk assessment
e. Discuss/negotiate the level of assistance from FD to auditors
i. If you provide assistance, this will keep your audit fees lower
f. Establish timetable for completing the work
i. Planning
ii. Fieldwork
iii. Financial statement completion
III. Auditor will ask you to sign confirmations
a. Bank accounts
b. Investments
c. Significant amounts receivable
d. Revenue contract with Town
e. Legal representation letter to your attorney
f. Other
Fieldwork Phase
I. Auditors will typically spend several days on-site at FD
a. Will need physical space to work
b. Will need access to records
c. Will need access to FD personnel who can answer their question
II. Auditors will want to review:
a. Board minutes
b. Finance reports issued by you during the year
c. Copy of your annual budget
d. General ledger
e. Journal entries
f. Bank statements and cancelled checks
g. Original invoices for assets and expenses
h. Payroll records
i. Contracts
j. Major leases
k. Bank loans and mortgages
III. Auditors should want to physically inspect certain assets
a. Major equipment (new and older items)
b. Building
c. Major construction projects
d. Possibly look at major inventories/supplies
IV. Auditors will usually ask many questions
a. Explanations for key transactions
b. More backup to support transactions
c. Reasons for fluctuations between your budgeted and actual results
Financial Statements, Reports and Wrap-up Phase
I. Auditors will provide you with proposed changes (adjusting entries) to your records
a. You need to agree or disagree
b. Possible to "pass" on minor proposed adjustments
c. Auditors will ask you to sign a "Management Representation Letter" at end of audit to codify various questions and answers provided during the audit
i. Usually signed by key member of management and at least one Board member
II. Auditors will provide draft financial statements for your review andapproval
III. Auditors should provide other written reports
a. Letter on reportable conditions (internal controls) and/or management letter suggestions
i. Major internal control weaknesses, if any, will be identified with recommendations for improvements
ii. Other comments may cover minor internal control weaknesses or efficiency tips
b. Communication letter to Finance Committee or Board
i. Summarizes the results of the audit, including:
1. Accounting policies
2. Accounting estimates
3. Audit adjustments recorded
4. Describe any difficulties dealing with management
5. Other
IV. Auditors should be invited to present their reports to Board or Finance Committee
a. Board or Finance Committee members should ask questions
V. Good communication between auditors, Board and FD personnel will increase the chances of a smooth and effective annual audit
Grant Making: WHAT IS EXPENDITURE RESPONSIBILITY?
This is from a 2019 article from The New York Community Trust called Grants and Other Distributions from Donor-Advised Funds written by Jane Wilton
This is an excellent article summarizing grant making rules. Its focus is on Donor Advised Funds (DAFs), but since DAFs are 501(c)(3) charities, and follow the same rules, this is an excellent read for all Grant Making Organizations. My take-a-way, a clear explanation of Expenditure Responsibility that I can relay to clients.
Full Article HERE
WHAT IS EXPENDITURE RESPONSIBILITY?
Broadly speaking, “expenditure responsibility” is a formalized process for due diligence in grantmaking. It requires (1) advance collection and review of certain information about the grantee (known as a “pre-grant inquiry”), (2) a grant agreement containing certain IRS-mandated provisions (e.g., annual reporting to the funder, a requirement to maintain adequate books and records, a prohibition on use of the granted funds for political campaign activity, and a refunding obligation to the extent funds are not used as required), (3) reporting by the grantee to the sponsoring organization, and (4) reporting by the sponsoring organization to the IRS on Form 990 on the status of the grant and its use by the grantee organization.