The New England Not-For-Profit Accounting Advisor

Not-for-Profit Financial Statement Presentation Changes Update

Posted by Michelle Spriggs on Sun, Nov 15, 2015 @ 11:00 AM

For the past three years, the FASB has been evaluating how to streamline the financial reporting model used by not-for-profits and health care entities. In 2015, the FASB published the long-awaited exposure draft that included the following proposed changes to the NFP Financial Reporting Model: reducing the number of net asset classes from three to two, modifying the statement of activities including a requirement to present an intermediate measure of operating performance, and changing the presentation of cash flows. The Exposure Draft also called for enhanced disclosures by not-for-profit organizations about their liquidity.

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Tags: financial statements, Non-profits, FASB, Michelle Spriggs, NFP

Preparing for Subpart F of the Uniform Grant Guidance

Posted by Michelle Spriggs on Fri, Nov 13, 2015 @ 03:00 PM

The final phase of the Office of Management and Budget’s Uniform Grant Guidance is nearly here, which means nonfederal agencies should be gearing up for the changes coming to their Single Audits.

OMB released 2 CFR 200: Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards (Uniform Grant Guidance) in December 2013. The Uniform Grant Guidance affects all nonfederal entities that receive grants and replaced rules in eight OMB Cost Circulars, including the A-133. Nonfederal entities began applying the changes to administrative requirements and cost principles to new federal awards received after December 26, 2014, and to additional funding to existing awards made after that date. For more information, please see, Implementing the Uniform Grant Reform Guidance.

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Tags: Non-profits, Michelle Spriggs, OMB, NFP, Uniform Grant Guidance

Substantiation Changes Proposed to Charitable Contribution Returns

Posted by Brenda Booth on Fri, Nov 13, 2015 @ 10:20 AM

Proposed changes were reported in the Federal Register on September 17, 2015, that relate to the substantiation of charitable donations. The rules, if approved, would create an alternative to the current requirement that an organization provide a contemporaneous written acknowledge (CWA) to the donor that contains certain information related to the donation. Organizations could instead provide an information return that includes the CWA information to both the donor and to the IRS.

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Tags: tax, Brenda Booth, not-for-profit, IRS, Charitable Contribution Returns

A Look into the Future: What Tax Changes May Be Coming for Not-for-Profits

Posted by Charlie Ciccone on Wed, Oct 28, 2015 @ 04:03 PM

Regulatory changes and areas of focus can be hard to predict, but the Internal Revenue Service (IRS) and the Department of the Treasury’s plans for the 2016 fiscal year provide a good indication for what may be coming down the line for not-for-profit organizations.

The IRS’s Tax-Exempt/Government Entities Priorities (TE/GE) for Fiscal Year 2016 and the Department of the Treasury’s 2015-2016 Priority Guidance Plan indicate a number of reporting areas that the regulatory agencies want to improve in the coming year. Not-for-profit organizations should keep a close eye on these focus areas to be prepared for the potential impact these changes could have on their operations.

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Tags: tax changes, Charlie Ciccone, Not-for-Profits

How to Modernize Your Audit Committee

Posted by David Brown on Wed, Oct 28, 2015 @ 01:36 PM

One needs only to look at the changes in the AICPA’s not-for-profit audit committee toolkit to understand the evolving responsibilities of the audit committee. The AICPA had previously recommended that not-for-profit audit committees monitor the financial reporting process and external auditors, perform internal audit functions and meet legal and/or regulatory requirements. The AICPA toolkit for 2015, the third edition, recommends roles and responsibilities beyond just hiring and communicating with the outside auditor. It suggests not-for-profit audit committees assess their internal audit function’s qualifications (if there is one), independence and performance and assist with their organization’s risk management and governance functions. The toolkit comes with Microsoft Word files of all the tools so you can modify and customize to fit your committee’s needs.

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Tags: David Brown, Audit Committee

Enhance Your Not-for-Profit’s Cybersecurity Strategy

Posted by Christopher Roach on Tue, Oct 20, 2015 @ 11:15 AM

Data breaches affect all organizations, from small not-for-profit organizations to large commercial retailers. Hackers do not discriminate. Should your organization fall victim to a cyber attack, the results could be devastating. The average cost of a data breach in 2014 was $3.5 million. Furthermore, threats to cybersecurity appear to be increasing both in quantity and in severity. Data breaches doubled from 2012 to 2013 and from 2013 to 2014, the average cost of data breaches went up by more than 15 percent.

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Tags: cybersecurity, risk management, Christopher Roach

Don’t Forget the SALT- A Not-for-Profit’s Guide to State and Local Tax Compliance

Posted by Tarra Curran and Craig Klein on Fri, Oct 2, 2015 @ 04:31 PM

The digital age created a new standard for your operations. Not-for-profit organizations no longer need brick-and-mortar locations to deliver services, and employees do not need to be physically present in your building in order to work for your organization. Online gift shops and bookstores may also necessitate tax filings in multiple states.


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Tags: Tarra Curran, Not-for-Profits, tax compliance, Craig Klein, sales and use tax, payroll taxes, unrelated business income (UBI)

Does your Not-for-Profit’s CEO Need an Exit Agreement?

Posted by Priya Kapila on Tue, Sep 29, 2015 @ 01:11 PM

Most professionals think hard about getting a job. Choosing the right outfit. Acing the interview. Negotiating a fair salary and benefits package. But rarely is much thought given to leaving a job until that day draws near. That can cause a wave of trouble for a not-for-profit organization, especially when the founder or long-time executive is ready to walk out the door one last time. Boards and executives who take a proactive approach to saying adiós can ease the transition to new leadership and help ensure stability in their organizations.

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Tags: not-for-profit, executive compensation, Priya Kapila, exit agreement

Broadening Your Benefit Plan: A Quick Guide to 457(b) Plans

Posted by Bernard Kaplan on Fri, Sep 18, 2015 @ 09:10 AM

Not-for-profit organizations walk a fine line with their compensation arrangements. The IRS and the public keep a close eye on executive pay. At the same time, organizations need to offer a competitive compensation package in order to attract and retain the right talent.

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Tags: Bernard Kaplan, employee benefit plan, 457(b) plan

Five Ways to Improve Governance and Risk Management Practices

Posted by Mike Burns on Tue, Aug 25, 2015 @ 10:40 AM

Over the last few years, we have seen some clear trends and evolving practices on governance and risk management. This summary will allow you to assess some best practices we have observed so you can evaluate ideas and opportunities for possible improvement or evolution within your own not-for-profit organization.

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Tags: Non-profits, NFP, Mike Burns, risk management, Governance