December is a giving time of year, and not-for-profit organizations may be on the receiving end of some financial gifts. Individuals and businesses have strong tax incentives to make charitable contributions before the calendar year wraps up, and as a result, donations may be flooding in.
Holiday cyber risks
Not-for-profit organizations have a year to work on their new financial statement presentation requirements. Changes released in August 2016 affect the financial statement presentation of net asset classification, governing board designation, investment return, underwater endowment funds, capital gifts, expenses, liquidity and operating cash flows. Organizations will need to have the changes ready to go for their 2018 calendar year-end filings (Dec. 31, 2018 or 2019 fiscal year end filings, e.g. June 30, 2019).
Not-for-profit financial statement,
financial statement reporting,
financial statement presentation requirements,
Financial Statement Standard
Not-for-profit chief financial officers (CFOs) fill many roles, and may be involved in decisions ranging from accounting to real estate and administration. The smaller the organization, the more likely it is that your CFO covers a wide range of responsibilities. He or she could be providing oversight over finance teams while also creating a high level strategy for financial and investment decisions.
Congress took its first steps toward tax reform when both the House and the Senate released versions of their changes to the tax code. The House passed its version of the Tax Cuts and Jobs Act, while the Senate Finance Committee approved its version of a tax reform bill on November 16. Provisions vary significantly between the House and the Senate versions of the tax reform plan, but they share one element in common: they both have provisions that will affect not-for-profit organizations.
House of Representatives,
Charitable contribution planning,
The close of the calendar year provides a good opportunity for not-for-profit organizations with June 30 fiscal year ends to plan ahead. Many accounting standard changes went into effect for 2017 fiscal years. The updates could affect financial statements in multiple places, from adding or changing disclosures to modifications in internal controls over financial reporting.
2017 fiscal year end,
Equity Method of Accounting,
Data-driven analytics are here to stay when it comes to compliance enforcement for not-for-profit organizations. The IRS Tax Exempt and Government Entities FY2018 Work Plan outlines strategies and approaches that the IRS will use to monitor tax compliance for tax-exempt organizations.
tax exempt bonds,
2018 IRS Work Plan,
IRS Work Plan
Natural disasters and other unexpected, disruptive events can bring out the best in people. Community members want to help in any way they can, and one of the easiest ways to lend a hand is through donations.
A financial statement audit is bound to produce questions on financial statement reporting, and many are matters that are better addressed before the start of the audit. Questions addressed during the reporting year can save not-for-profit organizations a lot of time during their next audit and could eliminate potential control deficiencies reported as a result of addressing these prior to the audit. The following are among the top questions we routinely hear from our clients.
Joyce Masse Troy,
financial statement audit,
financial statement reporting