It’s a tough time for any organization looking to hire right now. The unemployment rate in July was at its lowest level since 1969, and all signs indicate that the trend will continue. Baby boomers will also continue to retire, leaving a massive void in the workforce.
Topics: CFO, not-for-profit, NFP, competing for talent, nonprofit, retain talent, not-for-profit talent, Jay Meschke, recruiting, not-for-profit recruitment
The 2017 tax reform law gives donors more of an incentive to make charitable contributions, increasing the deduction allowed for cash contributions to public charities from 50 to 60 percent of adjusted gross income. Substantiating that deduction, however, may be more challenging due to recently finalized IRS regulations.
Topics: not-for-profit, Taxes, Bill Smith, Tax Reform, charitable giving, Charitable contribution planning, Charitable Contribution Deductions, Nate Smith
Tax-exempt organizations other than those organized under 501(c)(3) or political organizations (under Section 527) will soon be able to leave off donor names and addresses from their Form 990s. The change to the annual tax filings will apply to tax years ending on or after Dec. 31, 2018, according to IRS Rev. Proc. 2018-38. Requirements for 501(c)(3) and Section 527 organizations remain the same. These organizations will continue to report the names and addresses of donors that meet certain threshold requirements as part of their Form 990, Schedule B.
Topics: Brenda Booth, not-for-profit, Form 990, NFP, 501(c)(3), tax-exempt organizations, Donor Information, Section 527
By now you have probably heard of Bitcoin and other cryptocurrency – the virtual money traded online using encrypted peer-to-peer software. But, until now, you may not have thought about how the technology could benefit your not-for-profit organization.
Topics: not-for-profit, NFP, Mark Winiarski, nonprofit, Brenda Piazza, Bitcoin, Cryptocurrency, Blockchain
On June 20, the Office of Management and Budget (OMB) released a memo on new thresholds for micro-purchases and small purchases under the Uniform Grant Guidance. The OMB memo dramatically increased these thresholds, which should simplify purchase processes for not-for-profit organizations receiving federal funds.
Topics: not-for-profit, Federal OMB Grant, Michelle Spriggs, OMB, NFP, Uniform Grant Guidance, nonprofit, micro-purchase
On June 21, 2018 the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2018-08, Not-for-Profit Entities (Topic 958): Clarifying the Scope and the Accounting Guidance for Contributions received and Contributions Made, which provides accounting guidance around contributions of cash and other assets received and made by not-for-profit organizations and business enterprises.
Topics: Not-for-Profits, FASB, NFP, Revenue recognition, Financial Accounting Standards Board, ASC Topic 606, Holly Perez
From large organizations to small local associations, cybersecurity is a concern for everyone in the not-for-profit sphere. Yet, because it can often feel like a foreign subject, many organizations aren’t comfortable even describing what cybersecurity is and what it means for their day-to-day operations, which typically means organizations may not be doing what they need to mitigate the associated risks.
Topics: not-for-profit, NFP, cyber attacks, cyber security, Michelle White
The IRS may be faced with a declining workforce and budget, but it’s still active in monitoring compliance for not-for-profit organizations. In its 2018 work plan, the IRS stressed its data-driven approach to selecting Form 990s to examine. Each filed return is scanned and analyzed on 200 data points. Those meeting certain criteria are flagged for potential exam. Some of those data points include:
Topics: tax-exempt, not-for-profit, IRS, Form 990, Form 990-EZ, NFP, tax effect, Lisa Burke
As not-for-profit organizations prepare to adopt the new financial reporting requirements of Financial Accounting Standards Board (FASB) Accounting Standards Update 2016-14, Not-for-Profit Entities (Topic 958): Presentation of Financial Statements of Not-for-Profit Entities (ASU 2016-14), Board members should take an active role in overseeing the implementation of this standard since one of the key fiduciary responsibilities of those charged with governance is to oversee the financial reporting process. ASU 2016-14 is designed to provide more transparency into the financial reporting process of an organization and does so by addressing updates to several areas, including net asset classifications, investment reporting, expenses and the presentation of statement of cash flows information.
Topics: Non-profits, Not-for-Profits, NFP, Not-for-profit financial statement, board of directors, financial statement audit, financial statement reporting, tracy mcdonald, not-for-profit board of directors
If you are the sponsor of a 403(b) retirement plan, you may be asking if it is possible for your organization to be sued over your retirement plan fees. Historically, lawsuits have primarily been filed against for-profit companies sponsoring 401(k) plans. But litigation from 2016 suggests not-for-profit organizations are being scrutinized for their retirement plan fees as well. The law firm Schlichter, Bogard, & Denton targeted numerous high-profile universities, including Yale University, the University of Pennsylvania, New York University, and the Massachusetts Institute of Technology on behalf of retirement plan participants who alleged their recordkeeping and investment costs were too high. Plaintiffs also alleged that there were too many investment options offered in the 403(b) plans, which created confusion, with many underperforming peer benchmarks.
Topics: retirement plans, Non-profits, NFP, Retirement Plan Fees, Retirement Plan Lawsuit, 403(b) programs