It Is Time To Vote: Watch Out for IRS Limits on Not-For-Profit Political Activities

The mid-term elections are almost here, and jockeying for the 2024 elections is not far behind. That makes this a good time to review the IRS rules regarding Section 501(c)(3) organizations and political activities. Noncompliance can lead to costly excise taxes and jeopardize your organization’s tax-exempt status. General prohibition The IRS is clear: Sec. 501(c)(3) […]

How Should You Approach Collaborative Arrangements?

The simplest relationship between not-for-profit organizations for accounting purposes may be a collaborative arrangement. These are typically contractual agreements in which two or more organizations are active participants in a joint operating activity. Both entities are vulnerable to risks and rewards that hinge on the activity’s commercial success. Costs incurred and revenues generated from transactions […]

Teaming Up: How to Handle Financial Reporting for Two

So, you have recently joined forces with another entity to boost efficiency, save money and better serve your constituencies. Sounds like a smart move. But does your accounting staff know how to report the activities of the two organizations?  Much will depend on the nature of your new relationship.

Signs of Financial Trouble for Board Members

A key fiduciary duty of a not-for-profit’s board of directors is to oversee and monitor the organization’s financial health. Some financial matters may jump out at board members, such as the loss of a major funder or a successful fundraising event. But other financial factors are less flashy. Here are some to consider. Watch for […]

Implementing ASU 2018-08: Clarifying the Scope and the Accounting Guidance for Contributions Received and Contributions Made

The Financial Accounting Standards Board has recently issued Accounting Standards Update (ASU) 2018-08, Clarifying the Scope and the Accounting Guidance for Contributions Received and Contributions Made. This new ASU provides additional guidance to determine whether a transaction is a contribution or an exchange transaction. This determination is significant because it will identify which revenue recognition guidance is applicable.

Making Sense of FASB’s New Accounting Standard for Not-for-Profit Organizations

The FASB recently released its first update to the financial reporting rules for not-for-profit organizations since 1993. The new Accounting Standards Update (ASU) No. 2016-14, Not-for-Profit Entities (Topic 958): Presentation of Financial Statements of Not-for-Profit Entities, will affect the financial statements of most organizations when it takes effect. This article explains the standard’s new net asset classes, how liquidity and available resources reporting has changed and the new requirements for reporting expenses and investment return.

DOL Addresses Worker Classification and Overtime Rules

The U.S. Department of Labor (DOL) recently addressed the hot button topics of worker classification and overtime pay. This article sheds light on the DOL’s new guidance on independent contractors, how proposed overtime rules could hike employee costs and how awareness of these updates by the DOL is of importance, particularly with a new calendar year on the horizon.

Tips for Preventing Fraud in Your Organization

Fraud does not just hurt a not-for-profit profit’s bottom line — it also could do devastating damage to its reputation. This article discusses how, by implementing some simple controls, an organization can help protect itself from these risks. These controls involve segregation of accounting duties, fraud awareness training for all employees, establishment of a fraud hotline and risk assessment.

The Role of the Audit Committee

Public companies are required to have an audit committee (due to the Sarbanes-Oxley Act of 2002), and while not required, many not-for-profit organizations have also started their own committees as well. In order for an audit committee to be successful, both the organization and committee members must develop and fully understand the committee’s role and responsibilities.

Illinois Department of Human Services Financial Reporting

It’s Illinois Department of Human Services (DHS) reporting season for many DHS-funded Community Service Providers. At the end of May, DHS issued their FY12 Memorandum to Chief Executive Officers outlining fiscal year-end financial reporting.

Not-For-Profit Group Newsletter – Summer 2024

ORBA’s Not-For-Profit Group’s 2024 Summer Newsletter covers the concerns around hosting raffles in regards to IRS gaming rules and explains the recent changes to Charity Navigator’s ranking methodology.

Not-For-Profit Group Newsletter – Fall 2023

ORBA’s Not-For-Profit Group’s Newsletter cautions not-for-profit organizations of the potentially unexpected tax implications of alternative investments and provides an overview of the nonfinancial information on Form 990 and where to find it.

Not-For-Profit Group Newsletter – Winter 2023

ORBA’s Not-For-Profit Group’s 2023 Winter Newsletter shares details of the continuing popularity of donor-advised funds and highlights strategies for how boards can increase their cybersecurity.

Not-For-Profit Group Newsletter – Winter 2022

ORBA’s Not-For-Profit Newsletter provides an overview of what not-for-profit lessees need to know about Financial Accounting Standards Board’s (FASB) Accounting Standards Update (ASU) 2016-02, Leases (Topic 842) and covers how the use of automatic enrollment has pushed participation in 403(b) retirement plans to the highest level since 2008.

Not-For-Profit Group Newsletter – Summer 2021

ORBA’s Not-For-Profit Newsletter helps guide not-for-profit organizations in the quest to reduce costs and spotlights a U.S. Supreme Court case striking down a California law requiring not-for-profits to file a list of their large donors with the state.

Not-For-Profit Group Newsletter – Fall 2020

Our Not-For-Profit Newsletter provides you with action steps for enhancing fiscal oversight and spotlights a not-for-profit’s innovative revenue-producing effort during the COVID-19 pandemic.

Not-For-Profit Group Newsletter – Summer 2017

ORBA’s Not-For-Profit Group Newsletter is a quarterly publication focused on effective not-for-profit organization management. The Summer 2017 issue includes two articles: “Boards and Their Fiduciary Responsibility” and “Newsbits: Summer 2017.’”

Not-For-Profit Group Newsletter — Spring 2016

Tread Carefully This Election Season SARAH WIDLOCK, CPA With the 2016 election season picking up steam, not-for-profit organizations need to exercise caution not to stray into political activities that could put their tax-exempt status on the line. However, while the Internal Revenue Code (IRC) clearly prohibits certain activities and expenditures related to the political process, […]

Not-For-Profit Group Newsletter – Winter 2015

ORBA’s Not-For-Profit Group Newsletter is a quarterly publication focused on effective not-for-profit management. The Winter 2015 issue includes two articles, Move Over Expense Ratios and Not-For-Profit Newsbit: Simple and Secure.

Not-For-Profit Group Newsletter – Summer 2013

Online Resources For Exempt Organization Information CHARLES J. BURKE, CPA A vast array of exempt organization information is widely available on the internet, however as we all know, not all information is created equal, especially on the World Wide Web. Finding accurate and relevant information from reputable sources is integral for potential donors, grantmakers, stakeholders […]