Blog

Category: Nonprofit

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June 5, 2023
Are Your Nonprofit’s Interim and Year-End Financial Statements at Odds?

Using the cash basis of accounting may make sense for your not-for-profit organization — at least at this stage. Many smaller nonprofits use the cash basis to prepare their financial statements because it’s generally quick, easy and intuitive and can alert them to curren...

May 22, 2023
Keep Thieves from Stealing from Your Nonprofit Youth Sports League

A few years ago, the popular and well-compensated executive director of a west coast youth soccer league was accused of fraud. After scrutinizing the club’s books, the league’s board of directors couldn’t account for $80,000. Criminal charges were eventually dropped, b...

April 26, 2023
Keeping in Compliance with Uniform Guidance

If your not-for-profit receives significant federal funds, it may be subject to the Office of Management and Budget’s Administrative Requirements, Cost Principles, and Audit Requirements (Uniform Guidance). And if your nonprofit spends $750,000 or more in federal awards in...

April 3, 2023
Nonprofits: 4 ratios worth watching

To control your not-for-profit’s expenses and improve operating efficiency, you need to keep an eye on the numbers. This should come as no surprise. But which measures are important? Which ratios can help you identify how much currently goes toward programming (as opposed ...

March 20, 2023
Make Your Nonprofit’s Auction a Success by Following IRS Rules

Whether your nonprofit is holding an in-person or online auction to raise funds, you need to be careful to adhere to tax requirements. For example, you should provide written acknowledgments (including good faith estimates of any goods or services provided in return for cont...

February 22, 2023
Passing the Public Support Test

Unless 501(c)(3) organizations prove they’re publicly supported, the IRS assumes they’re private foundations. The distinction is important, because publicly supported charities enjoy higher tax-deductible donation limits and generally are exempt from excise taxes and rel...

February 21, 2023
Are Your Accounting and Development Departments like Oil and Water?

When Accounting and Development teams don’t work well together, the situation can lead to more than employee hostility and conflict. It can affect the not-for-profit’s financial statements and lead to the forfeiture of grant funds. To ensure the staffers in your Accounti...

February 1, 2023
A Refresher on Nonprofit Endowment Management

If your not-for-profit has an endowment, you probably know it’s a major responsibility. Endowment investments generally need to be managed by a financial expert, and your organization must adhere to certain regulations, particularly when it comes to spending. As a refreshe...

January 20, 2023
Valuing Tangible Property Donations Isn’t as Simple as You May Think

A new refugee resettlement charity had only just begun operating when its director realized something: She wasn’t sure how to value the many donations of clothing and household goods community members had dropped off. Was value simply the price her not-for-profit would cha...

December 30, 2022
Tip to Help Prevent Accounting and Tax Errors

Although failing to file a Form 990 with the IRS when required to do so is probably a more serious mistake, filing it with data errors isn’t recommended. Similarly, your not-for-profit should strive to be as accurate as possible when preparing accounting and other tax docu...

December 27, 2022
Game On! Just Make Sure Your Nonprofit Follows Tax Rules

If you’re starting to plan activities for a 2023 fundraiser, consider gaming — for example, bingo, poker, raffles and even casino-type games. Such games can be a great way to engage supporters and raise more revenue than your not-for-profit might otherwise. However, gami...

December 14, 2022
New Accounting Standard: Does it Affect Your Nonprofit?

An accounting standard from the Financial Accounting Standards Board (FASB) that takes effect in mid-December, 2022, could require your not-for-profit organization to act. Accounting Standards Update (ASU) No. 2016-13, Financial Instruments — Credit Losses (Topic 326), Mea...