With only a few months left, the countdown to the mandatory 403(b) plan document restatement deadline is officially underway. All organizations that sponsor 403(b) retirement plans must restate their plan documents by March 31, 2020, using either the IRS’s pre-approved document or an individually designed plan document.
Topics: not-for-profit, IRS, 403(b), NFP, 403(b) Plan Document Restatement
Complex standards and organizations’ implementation efforts related to those standards will continue to dominate the accounting conversations for not-for-profits throughout the year. Organizations that follow a fiscal year-end should now be putting the finishing touches on their revenue recognition and contribution accounting adoption efforts. Not-for-profits that follow a calendar year-end will soon be tackling the leasing standard. Below is a preview of what organizations can expect from their 2020 accounting.
Topics: Revenue Recognition Standard, not-for-profit, Mark Winiarski, Revenue recognition, Lease Standards, leasing standard, revenue recognition for nonprofits, ASC Topic 606
An appropriations bill passed on December 20 contains a gift for not-for-profit organizations. The so-called Further Consolidated Appropriations Act, 2020 (FCAA) provides a long-awaited solution for not-for-profits that provide certain transportation and parking benefits to their employees. It also contains retirement plan benefits and reinstates other expired tax incentives (the so-called “Extenders”).
Topics: Tax incentive, Craig Klein, Taxes, Congress, Tax Reform, not-for-profit tax, TCJA, parking tax
Topics: Not-for-Profits, NFP, Revenue recognition, ASC Topic 606, Holly Perez
Directors and Officers (D&O) coverage plays a vital role in an organization’s risk mitigation strategy, but for some not-for-profits, the insurance coverage may go under the radar. Executive leaders and board members should understand the basics of D&O coverage so they can carry out your fiduciary duties, as well as protect personal and organizational assets. The following provides a primer for what a not-for-profit’s C suite and board should know.
Topics: Non-profits, Not-for-Profits, NFP, D&O Insurance, Raul Socha, Directors & Officers Insurance, D&O Coverage
It is not possible for not-for-profit organizations and higher education institutions to prepare for all the risks they could face in the coming year. At some point, you have to make decisions about which risks have the highest chance of occurring or would have the highest monetary or operational impact if the risks happened.
Topics: not-for-profit, NFP, risk, risk management, Not-For-Profit Risk Management, risk mitigation
Chief financial officers (CFOs), boards, and donors all want to see their not-for-profit organizations manage their financial resources well. They want as many dollars as possible put toward the programs and activities that further the organization’s mission. In other words, they want overhead and operating costs to be lower than program-related expenses. The question not-for-profits must ask is: are they setting the bar for overhead expenses too low?
Topics: Non-profits, Not-for-Profits, NFP, operating environment, tracy mcdonald, operating costs, overhead costs, Overhead Caps
The landscape has shifted for charitable giving. As individuals feel the effect of the Tax Cut and Jobs Act (TCJA) of 2017 on their personal tax situation, charities making requests for donations will need to respond in kind. Development departments are having to adjust their “ask” to meet the challenges brought on by the reduced tax incentive to make charitable gifts. Donors often respond with their hearts and minds when giving to their favorite causes, but financial reality will play an important role when deciding where to spend their limited charitable dollars.
Topics: charitable donations, Amy O’Loughlin, Not-for-Profits, nonprofit, benchmarking, charitable giving, Charitable contribution planning, TCJA, donors, artificial intelligence
Rules requiring certain not-for-profits to report the names and addresses of major donors will remain in place for the time being. A recent ruling from the U.S. District Court of Montana set aside and declared unlawful the Revenue Procedure that would have exempted some types of not-for-profits from the requirement to report the names of their major donors in their annual information filings.
Topics: not-for-profit, Taxes, Bill Smith, Donations, donors
Not-for-profit organizations must be vigilant and careful shepherds of their monetary resources. Sometimes sound financial management takes some outside-of-the-box thinking. Not-for-profits do not have the same avenues to offset rising operational costs that for-profits might. They cannot, for example, raise additional revenue through price increases, product or packaging enhancements, or even service line extensions.
Topics: non-for-profit, Non-profits, nonprofit, Mark McCarthy, CCR, Construction, Construction Cost Review