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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What to remember about recording contributions

There are a lot of different aspects to remember about recording contributions. Here is a bullet pointed refresher for you to refer to: Don’t miss: Electronically filing your forms 1023 and 1023EZ Contributions can be restricted for a certain purpose (e.g. to purchase computers) or restricted to a specific time period (e.g., a multi-year promise …

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Update on nonprofit accounting for a PPP loan

On May 29, I wrote an article on this topic, which was before official guidance had come out from the FASB. You may think the accounting for PPP funding would be straight forward, but unfortunately, it is not. Here are some questions a nonprofit organization should be asking. What options does a nonprofit organization have …

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When to recognize donated services and how much should you recognize

When most people think of in-kind donations their first thought might be to think of tangible goods. Tangible goods can be things such as vehicles, clothing, books and so on. With a physical transfer of assets, knowing when to recognize the contribution is simple. But what is not quite so simple is recording the other …

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