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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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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Form 990 schedule M – Noncash contributions

Schedule M of the Form 990 is required to be filled out by tax exempt organizations who received $25,000 or more in noncash contributions (in total) or received ‘contributions of art, historical treasures or other similar assets, or qualified conservation contributions.’ For the noncash contribution, the following information needs to be reported: the type of …

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Special Events Revenue: GAAP vs Form 990

For those non-profits that have had special events this can be one of the more difficult areas, specifically when it comes to reconciling between the financial statements and the Form 990. Before we start detailing the differences, it will help to outline the different revenue types related to special events. The different revenue types include …

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Provider Relief Funds, your SEFA and reporting as income

If your organization has a fiscal year-end of 6/30/21, here are a few points to be aware of regarding when to include Provider Relief Funds (PRF) on your SEFA and when to report it as income. Don’t miss: Shuttered Venue Operating Grant update PRF monies received during “Period 1” (which is monies received from 4/1/20- …

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Shuttered Venue Operating Grant update

Many nonprofit arts and cultural organizations have recently received Shuttered Venue Operating Grant (SVOG) monies. Here are a few points to know relating to this funding. The grantee must maintain advance payments in interest bearing accounts, and the limit on interest earned on grant fund deposits is $500 per year. Any amount greater than $500 …

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Gifts-in-kind: What you need to know

A lot of not-for-profit organizations receive gifts-in-kind but there has not always been a lot of guidance on presenting gifts-in-kind in the financial statements and footnotes. Good news, the FASB has issued ASU 2020-07 – Not-for-Profit Entities (Topic 958) which addresses these issues. Don’t miss: Are you missing a related party footnote disclosure? This standard …

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Accounting for donation restrictions

In 2016, FASB issued Accounting Standards Update (ASU) 2016-14, Not-for-Profit Entities – Presentation of Financial Statements of Not-for-Profit Entities, which became effective for fiscal years beginning after December 15, 2017. Among other items, this update addressed the complexity and understandability of net asset classification, reducing the number of categories from three down to two. The …

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Contributions or exchange transactions?

In June 2018 the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2018-08, Not-for-Profit Entities-Clarifying the Scope and Accounting Guidance for Contributions Received and Contributions Made. The ASU clarifies and improves guidance for contributions received and contributions made by clarifying whether to account for transactions as contributions or exchange transactions. The ASU …

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$15B in COVID-19 relief grants for arts and cultural organizations will soon be available

The new COVID-19 Relief Act has set aside $15 billion to be given out as “grants for shuttered venue operators”. This includes many types of nonprofit arts and cultural organizations such as performing arts organizations, theatrical producers, certain types of “relevant” museums and others. “Relevant” museums generally include arboretums, botanical gardens, art museums, children’s museums, …

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