The New England Not-For-Profit Accounting Advisor

Manage Your Abandoned Property Audit Risk

Posted by Joe Giso on Thu, Mar 26, 2015 @ 09:02 AM

Almost every entity has unclaimed or abandoned property, be it uncashed payroll, dividend or other checks, account receivable credit balances or unclaimed real estate. If not treated correctly, your not-for-profit’s abandoned property could pose a liability to your organization in terms of financial and reputational loss.
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Tags: Unclaimed Property Reporting, Joe Giso, unclaimed property, unclaimed property audits

Join us for the 2015 AICPA National Not-for-Profit Conference

Posted by Chrissy Hammond on Wed, Mar 25, 2015 @ 01:55 PM

CBIZ Tofias and Mayer Hoffman McCann P.C. are pleased to be sponsors of the 2015 American Institute of Certified Public Accountants (AICPA) National Not-for-Profit Conference, which will be held June 15-17, 2015, 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

Nine Ratios to Help Measure Your Not-for-Profit’s Financial Health

Posted by Scott Denlinger on Fri, Mar 20, 2015 @ 09:27 AM

More not-for-profit organizations are recognizing the benefit of financial performance measurement as a strategy for evaluating operations, programs, services and financial stability. One useful measurement tool is financial ratio analysis. It involves taking data from your financial statements, using it to calculate ratios appropriate for your not-for-profit, and then benchmarking those ratios against past performance, management objectives or other organizations.

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Tags: not-for-profit, financial performance measurement, financial ratio analysis, Scott Denlinger

Competing for Talent as a Not-for-Profit Organization

Posted by Angie Salmon on Thu, Feb 26, 2015 @ 02:00 PM

NFP_competing_for_talentRetaining and recruiting the right people is an ongoing struggle for any entity, and not-for-profit organizations may find competing for talent especially difficult. Your corporate counterparts can mobilize a dedicated recruitment staff to fill positions and often offer employees higher compensation and expanded career opportunities.

Not-for-profit organizations can use a number of strategies to level the playing field in the war for talent, however. From using social media tools and proactive tactics for recruiting to creating an environment that fosters employee engagement, not-for-profits can amp up their employee retention and recruitment strategies – often at a low cost.

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Tags: non-for-profit, competing for talent

Does the Housing Provided to Your University’s President Pose a Tax Risk?

Posted by Richard Scoresby on Thu, Feb 26, 2015 @ 12:00 PM

tax_riskPresidents of educational systems often accept free or reduced-rate housing when they accept their position. Located on or near campus, the residences serve as a fringe benefit to the leadership role. In most cases, the value of the home is not included as part of the employee’s compensation package.

Section 119 of the Internal Revenue Code (IRC) allows university- or college-provided housing to be an income-tax-free fringe benefit for employees if the arrangement passes a three-part test. Recent movement by the IRS, however, suggests the three-part test may be more difficult to meet than you may think.

The IRS recently conducted an audit of Ohio University and found that the housing provided to its president did not qualify for tax-exemption. The IRS said the value of Roderick McDavis’s 7,000 square foot home, located on Ohio University’s campus, should be included as part of his eligible compensation and subject to income and payroll taxes. It is still unknown which part of the three-part test the university failed.

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Tags: Richard Scoresby, university, tax risk

Implementing the Uniform Grant Reform Guidance

Posted by Michelle Spriggs on Tue, Feb 24, 2015 @ 12:18 PM

If you receive Federal grants, now is the time to evaluate how you manage them. December 26, 2014 was the start date of comprehensive grant reform as a result of 2 CFR 200: Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards (Uniform Grant Guidance), which affects all nonfederal agencies that receive grants. Often called the “super circular,” it replaces rules in Office of Management and Budget (OMB) Circulars A-21, A-50, A-87, A-89, A-102, A-110, A-122 and A-133.

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Tags: Michelle Spriggs, uniform reform guidance

FASB Eliminates Extraordinary Item Requirements

Posted by Mark Winiarski on Fri, Jan 30, 2015 @ 11:30 AM

As part of its efforts to simplify financial statement reporting, the Financial Accounting Standards Board (FASB) recently streamlined its treatment of extraordinary items. Entities will no longer have to separately classify, present and disclose extraordinary events or transactions.

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Tags: ASU, not-for-profit, FASB, Mark Winiarski

Best Practices in Accounting for Fundraising Costs

Posted by Heather Hernandez on Fri, Jan 30, 2015 @ 09:05 AM

Many not-for-profit organizations rely on various methods of fundraising to further their mission and tax-exempt purpose and to ensure a sustainable future. As such, they engage in fundraising efforts, either using internal resources or by using the help of an outside, professional fundraiser, to attract potential donors.

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

Mitigate Your Risk of UBTI

Posted by Joe Giso on Tue, Jan 27, 2015 @ 02:05 PM

A recent report from the IRS suggests unrelated business taxable income (UBTI) for tax-exempt organizations will be a key focus of IRS scrutiny as it pursues new government revenues.
Not-for-profits earn UBTI from a regularly carried on trade or business that is “not substantially related” to their purpose. Activities qualify as substantially related (and therefore tax-exempt) if a causal relationship exists between the activities generating income and the accomplishment of the entity’s defined mission. Read More

Tags: not-for-profit, UBTI, Joe Giso

Protect Your Executives and Board from Excess Compensation Risks

Posted by Priya Kapila on Fri, Jan 23, 2015 @ 09:41 AM

Not-for-profits must closely monitor the line between reasonable and excessive compensation. With the increasing IRS scrutiny on compensation levels, not-for-profits must be vigilant to ensure their pay and other transactions to key personnel remain reasonable.

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Tags: not-for-profit, executive compensation, compensation risks, Priya Kapila