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 …
Back in January we wrote a blog about the COVID relief grant that will be made available for arts and cultural organizations called the Shuttered Venue Operators Grant (SVOG) program. Since this blog was written, the SBA has issued some updates to this program including a date for when arts and cultural organizations can start …
You may have heard the phrase functional expenses thrown around, and now I am here to help clarify what that means. First, to understand functional expenses for nonprofit organizations it is important to understand the difference between functional expenses and natural expenses. A natural expense category breaks out expenses by their expense type. Don’t miss: …
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, …
We need to start out with a disclaimer here. Currently, there is no authoritative guidance on how to account for PPP loans. If you google this topic, you’ll find that there is diversity in thought and approaches. However, there is some unofficial guidance from the Center for Plain English Accounting (CPEA), which is the AICPA’s …
So you got through the process of obtaining of the PPP loans, now is the time to plan for the amount of your loan forgiveness. There may be things you can do now to maximize that amount. Here are some examples that you may help. Don’t miss: Beware of PPP scams Example #1: The loan …
The Families First Act was signed into law prior to the CARES Act and provides for government reimbursement of amounts employers pay to employees for sick leave and family leave due to Coronavirus. It’s quite confusing how this is calculated, but here is a summary: The government will reimburse up to $2,000 or $5,110 per …
There is no doubt COVID-19’s impact is like nothing we have experienced from the food and toilet paper shortages to the state mandated closures of non-essential businesses and schools. There is so much uncertainty as things are continually changing day by day. Nonprofits are not immune to the impact of COVID-19. In fact, they are …
As many of you may know, the Financial Accounting Standards Board (FASB) issued a new standard ASU 2016-14, Presentation of Financial Statements. One effect this standard has is that it creates consistency on how expenses are presented in the financial statements for all nonprofit organizations. Functional expenses can be disclosed in three different ways: 1. …
Expenses are reported in two different ways on the 990 return: by their natural classification (salaries, depreciation, travel, etc.) and by their functional classification (program, administrative, fundraising). Correct functional allocation of expenses is important because some donors may scrutinize the percentage of program costs vs. administrative and fundraising costs while making a decision to donate …