The New England Not-For-Profit Accounting Advisor

Not-For-Profits Should Prepare for Enhanced Scrutiny of Liquidity

Posted by David Brown on Wed, Apr 27, 2016 @ 10:47 AM

After a recent meeting, the Financial Accounting Standards Board (FASB) voted to draft the final accounting standard related to the first part of its not-for-profit financial statement presentation project. Among the changes are provisions that will make a not-for-profit’s liquidity more transparent.

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Tags: ASU, David Brown, not-for-profit, FASB, nonprofit, liqudity

Reminders About Prohibited Political Activity and Other Considerations for Not-For-Profits in an Election Year

Posted by Brenda Booth on Tue, Apr 26, 2016 @ 04:46 PM

Elections have a tendency to permeate everything, from television coverage to social media and even conversations in the workplace. For not-for-profits, keeping politics out of the work environment is essential.

501(c)(3) organizations are, by the definition of their tax-exemption, absolutely prohibited from directly or indirectly participating in, or intervening in, any political campaign on behalf of (or in opposition to) any candidate for elective public office. As such, they should be carefully monitoring their activities and those of their employees for anything that could be deemed politicking. If organizations cross the line with engaging in politics, there could be serious penalties or loss of tax-exempt status.

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Tags: lobbying, advocacy, tax, election year, Brenda Booth, not-for-profit, IRS

Join Us for the 2016 AICPA National Not-for-Profit Conference

Posted by Chrissy Hammond on Wed, Apr 20, 2016 @ 12:31 PM

CBIZ Tofias and Mayer Hoffman McCann P.C. are pleased to sponsor the 2016 American Institute of Certified Public Accountants (AICPA) National Not-for-Profit Conference being held on June 27-29, 2016, at the Gaylord National Resort & Convention Center, National Harbor, MD.

Considered the premier annual conference for this sector, it brings together the industry's top experts and thought leaders to offer their perspectives on the most crucial issues facing not-for-profit organizations and the practitioners who serve them.

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Tags: AICPA, NFP, NFP Conference

Improve Your Not-for-Profit’s Credit Card and Data Security

Posted by Karen Cassella on Fri, Apr 15, 2016 @ 02:58 PM

The ability to accept and protect credit cards is essential for all entities, including not-for-profit organizations. From ticket sales to donations, book and gift stores, dining halls, food sales and the bursar’s office, there is no escape from the use of payment cards.

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Tags: not-for-profit, Non-profits, NFP, Karen Cassella, PCI, PCI Compliance, PCI DSS

FASB Technical Agenda Update: Items of Note for Not-for-Profits

Posted by Heather Hernandez on Tue, Mar 29, 2016 @ 10:58 AM

Stakeholders had a lot to tell the Financial Accounting Standards Board (FASB) about its exposure draft of not-for-profit financial statement presentation changes in 2015. In the fall, the FASB announced it would be segmenting its proposed changes to financial statements into two phases to make the changes more manageable.

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Tags: not-for-profit, FASB, Heather Hernandez

Three Targets of UBIT Scrutiny

Posted by Betty Isler on Fri, Mar 25, 2016 @ 11:31 AM

The healthcare and educational sectors brought renewed scrutiny to nonprofits’ unrelated business income activity in recent years. High rates of noncompliance in the IRS College and University Compliance Project Final Report and renewed focus on spending in the healthcare sector have regulators taking an especially close look at the issue of unrelated business income tax (UBIT).

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Tags: not-for-profit, Non-profits, NFP, Betty Isler, unrelated business income (UBI), UBIT

What’s in a Name: How Nonprofits Can Protect Their Reputation

Posted by Greg Matusky on Thu, Mar 24, 2016 @ 01:33 PM

By guest contributor: Greg Matusky, President and Founder, Gregory FCA

When information emerged about how much the Wounded Warriors Project spent on fundraising, a ripple effect occurred with nonprofits with similar names. Organizations that also provide support to veterans faced questions about whether they, too, spent that kind of money on fundraising.

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Tags: not-for-profit, NFP, Public Relations, PR

Preparing for the Upcoming 403(b) Plan Document Restatement

Posted by Diane Caron on Fri, Mar 11, 2016 @ 11:34 AM

Compliance with retirement plan requirements is a moving target. As changes in the law occur, retirement plans are required to comply in operation with the new provisions as of the effective date of the law. Along with these changes, the IRS announces periods during which the plan must adopt interim amendments so that the plan’s language conforms to the plan operation. Retirement plan documents must then be restated in their entirety at set intervals (every five to six years), incorporating the required interim amendments.

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Tags: 403(b), Diane Caron, 403(b) Plan Document Restatement

Managing Underwater Endowments for Not-for-Profit Organizations

Posted by Adam Nelson on Thu, Feb 25, 2016 @ 03:26 PM

A recent study published by the National Association of College and University Business Officers (NACUBO) indicated that participating institutions saw their endowment returns decrease by 13 percent for the fiscal year that ended June 30, 2015, compared to the fiscal year that ended June 30, 2014. Considering the market performances from July 1, 2015 through January 31, 2016, the fiscal year that will end June 30, 2016, is shaping up to be a disappointment for endowment portfolios everywhere. As the market declines continue, the issue of underwater endowments will again become center stage in the not-for-profit sector.

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Tags: accounting, Non-profits, Not-for-Profits, NFP, Adam Nelson, Underwater Endowments

Report Asks for 501(c)(3) Application Improvements

Posted by Amy O’Loughlin on Thu, Feb 25, 2016 @ 10:47 AM

A recent report from the Taxpayer Advocate Service asks the IRS to devote more of its resources to catching 501(c)(3) compliance concerns early rather than trying to correct potential issues on the back end. If your organization recently applied for public charity status, the chances of receiving additional IRS scrutiny have increased significantly. The IRS may be looking at its applications for tax exemption. The report indicates that more oversight for the Form 1023, Application for Recognition of Exemption Under Section 501(c)(3) of the Internal Revenue Code and the Form 1023-EZ, Streamlined Application for Recognition of Exemption Under Section 501(c)(3) of the Internal Revenue Code may be needed.

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Tags: not-for-profit, IRS, Amy O’Loughlin, 501(c)(3), Form 1023, Form 1023-EZ