Nonprofits’ New Commuter Headache: Tax on Transportation Benefits
By Marc Berger Does your tax-exempt organization provide transportation and parking benefits to employees? If so, you may have another commuter headache: a new tax. Under the tax reform law, a provision was added to the Internal Revenue Code that will likely require many tax-exempt organizations to pay unrelated business income tax (UBIT) on transportation benefits. […]
Maintaining Single Audit Quality in a Time of Change
By Laurie De Armond The Government Accountability Office (GAO) released a revised edition of the “Yellow Book” on Generally Accepted Government Auditing Standards this Summer, marking the first update in nearly a decade. For government auditors at the federal, state, and local level, this new guidance contains several significant changes to everything from independence […]
FASB CLARIFIES AND IMPROVES GUIDANCE FOR NOT-FOR-PROFIT GRANT AND CONTRIBUTIONS ACCOUNTING
Summary The FASB issued ASU 2018-081 to clarify the accounting guidance related to contributions made or received. This guidance primarily affects not-for-profit (NFP) entities, although it also applies to businesses to the extent that they make or receive contributions, including grants. The ASU will likely result in more grants and contracts being accounted for as unconditional […]
Significant Rule Change for Tax-Exempt Organizations Reporting Donor Information
By Marc Berger On July 16, 2018, the IRS released Revenue Procedure 2018-38, modifying the information reported to the IRS by certain tax-exempt organizations on their annual Form 990 or Form 990-EZ information return. Affected organizations will no longer be required to report the names and addresses of their reportable contributors on the Schedule B […]
Are Grants Subject to Revenue Recognition?
By Lee Klump The FASB clarifies longstanding question for nonprofits Nonprofits received long-awaited clarification on a key accounting question from the Financial Accounting Standards Board (FASB) today. The FASB released a final accounting standards update (ASU), Not-for-Profit Entities (Topic 958): Clarifying the Scope and the Accounting Guidance for Contributions Received and Contributions Made. The ASU aims […]
Financial Stewards, Risk Mitigators, Digital Pioneers: What Don’t Nonprofit CFOs Do?
By Laurie De Armond Safeguarding an organization’s fiscal health remains a core responsibility of nonprofit CFOs, but their roles have grown far beyond the four corners of a financial statement. At last week’s BDO Greater Washington, D.C. 2018 Annual Nonprofit Summit, a panel of CFOs tackled the myriad responsibilities and evolving challenges today’s nonprofit CFO […]
Could the Universal Charitable Deduction Wish Come True?
By Laura Kalick Nonprofit organizations have had a “universal” charitable deduction—which would allow all taxpayers the opportunity to take the deduction—on their wish list for quite a while. Although this provision did not make it into the final text of the bill known as the Tax Cuts and Jobs Act of 2017 (the Tax Act), […]
A New Tool for Evaluating Nonprofit Financial Fitness
By Lee Klumpp Being financially fit and stable is critical to any business, including a not-for-profit (NFP). If a NFP has a weak financial position, it may not be able to sustain its operations. While the perception by many in today’s society is that most NFPs are generally financially healthy, this is not always the […]
A mission statement is more than mere words plastered on a website or at the top of an annual report – it represents everything an organization stands for and all that it can accomplish. It drives the organization and its work. There is a cyclical ad infinitum relationship between a nonprofit organization’s mission, its impact, […]
Ten Things Keeping Internal Audit Up at Night – Part 2
By Ken Eye, Andrea Wilson In part one of this series, we discussed how funders, strategy, culture, and more create obstacles for nonprofit internal auditors, but that’s not the whole story. Now, we’re looking at how things like third-party vendors and potential fraud pose challenges to nonprofit organizations, and what steps they can take to […]