The latest view on not-for-profit accounting issues

Lobbying and political activities – When do nonprofits pay tax?

The rules for lobbying and political activities for nonprofit organizations can get confusing. Here is some clarity for specific entities. Don’t miss: Bequest or promise to give? Lobbying activities 501(c)(4), 501(c)(5) and 501(c)(6) entities can conduct lobbying activities without any limitations. However, if the organization collects membership dues and those members (such as businesses or …

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Bequest or promise to give?

Suppose you receive a letter from a donor that states she promises to give $1 million to your organization upon her death and the amount will be paid from her estate. Should this be recorded as a promise to give? The answer is most likely yes. But when a donor names your organization in a will …

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It’s finally here – Topic 842 Leases Part 2

What is a lease you may be asking yourself? Well, a lease is a contract, or part of a contract, which conveys the right to control the use of identified property, plant, or equipment (an identified asset) for a period of time in exchange for consideration. Control over the use of the identified asset means …

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It’s finally here – Topic 842 Leases Part 1

In February 2016, the Financial Accounting Standards Board (“FASB”) issued its highly anticipated leasing standard (Topic 842) in Accounting Standards Update (“ASU”) 2016-02. Private companies and not-for-profit organizations must adopt the new lease accounting standard for fiscal years beginning after December 15, 2021. Don’t miss: The end of LIBOR interest rates The purpose for this …

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The end of LIBOR interest rates

The London Interbank Offered Rate (LIBOR) has been a key variable interest rate benchmark for years. However, you may have heard that LIBOR would be going away as it saw a decline in its credibility over the last several years. Well, the time has come. Effective December 31, 2021, the international LIBOR interest rates as …

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Electronic filing for form 1024

Organizations seeking recognition of exemption under Section 501(a) for being described in section 501(c) (other than 501(c)(3) which requires a form 1023) are required to file form 1024 (application for tax exempt status). Organizations should complete and file this form within fifteen months after the end of the month the organization was founded. Once this …

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Deciding between a conditional or unconditional contribution

When a nonprofit organization receives a contribution, they must determine if the contribution is a conditional or unconditional contribution. Don’t miss: A walk through Form 990 Schedule D An unconditional contribution is when a donor contributes to a nonprofit with no conditions or barriers for receiving the contribution. If the contribution is unconditional and also …

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A walk through Form 990 Schedule D

Confused by the different parts of Schedule D to the Form 990? Let’s walk through how to use each section as well as learn what information will be needed to complete each. In all there are 13 parts to Schedule D. Here’s all you need to know about the first four. Don’t miss: What’s the …

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What’s the difference between an audit and a finance committee?

As nonprofits grow and start receiving more donations, the need for a finance committee and/or audit committee becomes more necessary. These committees are created in addition to the board of directors, not in replace of. So what’s the difference between an audit and a finance committee and how do you choose which one works best …

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Preparing your SEFA

The SEFA (Schedule of Expenditures of Federal Awards) is a supplemental schedule to financial statements. Under the Uniform Guidance (2 CFR 200), a non-federal entity that expends $750,000 or more in federal awards during the entity’s year is required to have a Single Audit conducted. The SEFA is the primary basis auditors use to determine …

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