Understanding the Control Environment

When trying to deter fraud, most companies focus their time on developing effective internal control procedures and segregation of duties.  Though developing these types of systems are important, a common element of the COSO Internal Control Framework that is often overlooked is the organization’s control environment. The control environment is important to all organizations since …

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Fundraising Costs in Nonprofit Entities

I recently read an article at www.abc15.com (Arizona news station) about how more than 250 Arizona nonprofits, who received more than $1 million in a recent Form 990 filing, reported that they did not spend anything on fundraising expenses in raising those funds.  In general, you would expect that if an entity generates contribution income, …

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Social Welfare or Social Club?

I recently assisted a client with completing a Form 1023 to apply for tax exemption with the IRS for a newly form nonprofit entity.  As part of this process, questions came up about whether the organization was a social welfare entity or more like a social club.  The main difference between the two is that …

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