The New England Not-For-Profit Accounting Advisor

Post-Issuance Compliance for Tax-Exempt Bonds: Understanding the Requirements

Posted by Craig Klein on Tue, Sep 27, 2016 @ 04:39 PM

The tax-exempt bond area is closely overseen and regulated by the IRS tax-exempt bond (TEB) division. In 2016, TEB has been allocating half of its resources to examination casework. Included in the examination casework category are referrals and claims, TEB’s market segmentation program and the division’s compliance check/soft letter program.  Given the importance of tax-exempt bond financing to your organization, the complexity of maintaining post-issuance qualification of your bonds, and the IRS’s oversight of this area, your organization should understand the requirements for post-issuance compliance and monitor the use of bond-financed facilities to ensure continuing compliance. The penalties for noncompliance could be costly.

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Tags: tax-exempt, compliance, tax compliance, Craig Klein, 501(c)(3), tax exempt bonds, bonds, Post-issuance compliance

Not-For-Profits and the Challenge of Monitoring Retirement Plan Fees

Posted by Brad Sieniawski on Tue, Sep 27, 2016 @ 08:30 AM

As you may be aware, multiple universities were recently named in class action lawsuits relating to their retirement plans. The lawsuits allege that the institutions, and more importantly, the named fiduciaries of the plan, breached their fiduciary duties by allowing excessive fees for investments and recordkeeping and engaging in multiple recordkeepers.

They also were criticized for using restrictive and underperforming investment options for extended periods. These lawsuits demonstrate that not-for-profit organizations are not exempt from scrutiny and need to focus on fulfilling fiduciary duties and monitoring plan fees and expenses.

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Tags: retirement plans, Non-profits, NFP, Retirement Plan Fees, fiduciary

Presenting the New Not-For-Profit Financial Statement: Net Asset Classes & Governing Board Restrictions

Posted by Michelle Spriggs on Mon, Sep 26, 2016 @ 06:28 PM

Not-for-profit financial statements will receive a significant overhaul with the release of the Financial Accounting Standards Board (FASB)’s Accounting Standards Update (ASU) 2016-14, Not-for-Profit Entities (Topic 958) Presentation of Financial Statements of Not-for-Profit Entities. The ASU brings several changes, including the consolidation of net asset classes and enhanced disclosures regarding those net asset classes and governing board designations. In the second part of our series, we’ll look at these changes in more detail.

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

4 Ways Not-For-Profits Can Improve Fundraising Through Benchmarking

Posted by Tom Griffin on Tue, Aug 30, 2016 @ 11:00 AM

Like an annual physical, regular financial benchmarking helps not-for-profit organizations assess the health of their operations. Most carry out a series of formal and informal assessments every year, comparing investment returns to market indicators and like-endowments, checking their organization’s spending policies relative to similar groups and benchmarking executive compensation.

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Tags: Non-profits, NFP, Tom Griffin, benchmarking

Presenting the New Not-For-Profit Financial Statement

Posted by Michelle Spriggs on Mon, Aug 29, 2016 @ 06:10 PM

Major changes to not-for-profit organizations’ financial statement presentation were recently finalized with the issuance of the Financial Accounting Standards Board (FASB)’s Accounting Standards Update (ASU) No. 2016-14, Not-for-Profit Entities (Topic 958) Presentation of Financial Statements of Not-for-Profit Entities.

Designed to enhance and clarify the information provided in a not-for-profit’s financial statements, the accounting standards update makes changes to the guidance for net assets classification, governing board designations, investment return, underwater endowment funds, expenses, liquidity and presentation of operating cash flows.

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

Key Takeaways from the 2016 AICPA Not-For-Profit Industry Conference: A Practice Leader’s Perspective

Posted by Mike Burns on Wed, Jul 27, 2016 @ 09:21 AM

The American Institute of Certified Public Accountants (AICPA) held its annual Not-For-Profit Industry Conference on June 17-29, 2016. With more than 2,000 participants from around the country, this conference is widely viewed as the most important educational conference of the year for professionals who help address the accounting, audit, tax and operational issues facing not-for-profit organizations.

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Tags: accounting, AICPA, Non-profits, NFP, Mike Burns, NFP Conference

Advisory Group Makes Recommendations to the IRS on Tax-Exempt Requirements

Posted by Lisa Burke on Wed, Jul 27, 2016 @ 09:02 AM

The Advisory Committee on Tax-Exempt and Government Entities (ACT) recently held its 15th annual public meeting with the Commissioner and other top IRS officials. The ACT comprises national experts representing each of the five major jurisdictions of the TE/GE division: employee plans, exempt organizations, federal, state and local governments, Indian tribal governments and tax-exempt bonds.

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Tags: non-for-profit, IRS, Non-profits, nonprofit, ACT, TE/GE division

5 Risks Not-For-Profits Face with Construction Projects

Posted by Mark McCarthy on Tue, Jul 26, 2016 @ 03:06 PM

Growing programs, expanding service offerings or making substantial repairs to existing facilities make construction projects an inevitable part of the not-for-profit operating environment. Although a necessary part of operating, not-for-profits should approach each construction arrangement cautiously. Undertaking large projects comes with a fair amount of risk. Failing to adequately understand where your organization may be at risk can lead to overspending and, in certain cases, legal disputes. For not-for-profit organizations, maintaining project costs is essential. Knowing the five major risk areas in construction contracts can help you manage your ongoing or upcoming projects to ensure you are not overpaying.

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Tags: non-for-profit, Non-profits, nonprofit, Mark McCarthy, CCR, Construction, Construction Cost Review

5 Skills Every Not-For-Profit CEO Should Have

Posted by Daniel Cummings on Fri, Jul 15, 2016 @ 11:13 AM

Boards of directors, revenue generation, and community interfacing make not-for-profit management unique. Not-for-profit Chief Executive Officers (CEOs) and Executive Directors must balance mission objectives with an ever-more challenging economic reality while serving as the face of the organization to potential donors and the population the organization serves.

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Tags: non-for-profit, Non-profits, Daniel Cummings, CEO, nonprofit

3 Ways Not-For-Profit Board Members Can Act as Fiduciaries

Posted by Dyan Reinhold on Mon, Jun 27, 2016 @ 10:43 AM

The concept of a fiduciary often arises in discussions about financial advisors, attorneys, estate executors and scenarios that involve professionals handling financial assets or affairs on behalf of an individual or organization. These professionals are trusted to act in the best interest of the individual or organization. In many situations, such as with fiduciaries of retirement plans, this also means that professional should be taking steps to ensure that applicable regulations are being followed or the fiduciary could be held liable for compliance issues.

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Tags: Dyan Reinhold, non-for-profit, Non-profits, Nonprofit Board, fiduciaries