Holding an Auction? Be Sure to Comply
So you are having an auction. Rev up the team to solicit those baskets of goodies, spa visits, vacations and game tickets, but do not forget about complying with tax laws. There are several steps your not-for-profit organization must take to fulfill your tax obligations and help your auction buyers fulfill theirs.
Functional Expense Schedule Best Practices for Not-for-Profits
For some not-for-profit entities (NFPs), a separate statement of functional expenses will be the most efficient and effective way of presenting the analysis of expenses by function and nature that is required under FASB Accounting Standards Update (ASU) 2016-14, Not-for-Profit Entities (Topic 958): Presentation of Financial Statements of Not-for-Profit Entities. Voluntary health and welfare organizations were previously required to present a statement of functional expenses; other NFPs were not required but could choose to present one if desired. However, many NFPs are preparing this statement, or a similar schedule in the notes to the financial statements, for the first time. With that in mind, here are some best practices for organizations to keep in mind as they prepare these schedules.
Key Considerations When Adopting Digital Technology for the Cash Disbursement Process
Fewer and fewer businesses are relying on paper checks as their primary form of vendor payment. Whether these payments are switching to credit card, ACH, wire, bill pay software or others, one thing is for sure—the days of presenting a stack of paper invoices with a stack of paper checks for review and approval are numbered. With the rising popularity of alternative forms of payment and new technology, it is critical that organizations take a moment to ensure that they have sound controls over the review and approval process of cash disbursements.
Creating a Not-For-Profit Budget that Drives Funding Growth
Sherry Quam Taylor
Besides accuracy, one of the most important things about financial management is using those numbers to discover trends that will inform the business decisions that lead to growth. Your numbers tell a story about your not-for-profit organization – and when you understand how to read your numbers you can strategically use it to grow your funding.
How to Prepare for Your Audit
Caitlin G. Gibbs
It’s that time of year again: Your annual financial statement audit. You want it to go as smoothly as possible, but you are not sure what you need to do in order to make it happen. Here are some best practices and helpful tips to improve the efficiency of the audit.
Roles of the Finance Committee
The finance committee is charged with overseeing and keeping the board of directors informed of an organization’s overall financial health. Ideally, this entails more than simply scanning financial reports. The most valuable finance committees take a strategic role when it comes to oversight and planning. Active involvement not only pays off with robust financial governance, […]
Effective Governance — How Important is It Really?
Kelly H. Buchheit
Board Operations The value of an involved board of directors (governance) cannot be emphasized enough. Any well-run organization, whether for-profit or not-for-profit, has a layer of controls beyond management to ensure that there are appropriate checks and balances over management’s responsibilities. This also means that governance should be completely independent from management. In other words, […]
Effective Altruism Gains Momentum: Donors Are Looking for the Most Bank for Their Buck
Proponents of so-called “effective altruism,” also known as strategic giving, have gained footing in recent years. That’s evidenced by the growing role of organizations like GiveWell and The Life You Can Save, which help so-called effective altruists select organizations to support. That help is based on objective data about the organizations’ effectiveness at helping others. […]
2018 Yellow Book and New Independence Rules for Auditors
Many organizations are subject to reporting under generally accepted government auditing standards, also known as the Yellow Book. This reporting applies to all organizations that are subject to Single Audit reporting, HUD audits, most charter/contract schools and many social service agencies that receive state funding. The 2018 Yellow Book was recently updated and includes a […]
Newsworthy Notes for Not-for-Profits
Cryptocurrency Donations pose problems It’s hard enough figuring out how to manage donations of art or other nonfinancial assets — now some not-for-profits must navigate the challenges that come with cryptocurrency donations. According to Bloomberg, several colleges and universities have recently received crypto donations. These can raise accounting questions, complicate tax filings and require special […]