Generations have always mixed together in the workforce, but today it appears that we are experiencing an unprecedented mix of four, and recently up to five, generations in today’s workplace. As each generation brings its own expectations to the workplace, managers are challenged to understand and respond in a manner that builds engagement and achieves results.
Competition for funding is almost always fierce, and at the end of the day, it can be difficult to know why one not-for-profit’s grant application is selected over another’s. We recently received an inside look at the grant-making process, and the experience provided some additional insights into the type of information and requests that make a grant application appealing to grant-makers.
Donations to not-for-profit organizations are normally a win-win for organizations and their donors. Organizations receive gifts to help support their mission, and the donor receives a tax write-off. But not-for-profit organizations and donors must ensure they are in compliance with IRS substantiation requirements. The IRS requires that in order for a donor to take a deduction greater than $250, he or she must have a contemporaneous written acknowledgment (CWA) of the donation from the not-for-profit organization. CWAs must include the name of the organization, the value of the donation (if cash), a description of the donation (if non-cash), whether goods or services were provided in exchange for donation, and, if services were provided, a good faith estimate of the value of those services. If the value of the gift exceeds $5,000, in most cases, a qualified appraisal must be obtained in addition to the CWA.
Medical emergencies can happen at any time to anyone. Having the information you need at your fingertips, from emergency contact information to passwords and file access, can help ensure that if one of your employees experiences a health crisis, your organization is able to notify the people who need to know as soon as possible. A back-up for system for passwords can help operations to recover after an emergency event has occurred.
Colleges and universities play a vital role in facilitating federal student loans and financial aid to their student body. Enrollment changes make the role a difficult one. Administrators need thorough recordkeeping that monitors changes and provides the U.S. Department of Education (ED) the information it needs.
Revenue recognition, charitable giving results, compliance supplements—several recent developments could hold particular interest for the not-for-profit community. The following is a brief round-up of what’s new and noteworthy in not-for-profit accounting and management.
Audit committees for not-for-profit organizations do much more than what their name suggests. In addition to their primary focus of overseeing all aspects of the audit process, they are increasingly tasked with oversight of the not-for-profit’s enterprise risk management process and other risk mitigation activities.
Not-for-profit organizations cannot always control how their investments perform, but they can take steps to protect funds that are losing value.
Managing endowment investments will become even more important in the years ahead due to the changes coming to not-for-profit financial reporting. The changes will require organizations to disclose the fair value of the underwater endowed funds as well as the related original gift amount that must be maintained. The new requirements present an opportunity for organizations to reconsider their endowments and spending policies to preserve the value of such investments.
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.