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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Are you missing a related party footnote disclosure?

Related party footnote disclosure is easy to overlook but is quite significant in proper financial reporting and a requirement of GAAP if applicable. A related party footnote is needed to disclose certain common control relationships and corresponding transactions recorded in the financials that are related to one party having the leverage to influence the policies …

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What’s in the 2020 Compliance Supplement Addendum for you?

Every year the Office of Management and Budget (OMB) releases one Compliance Supplement which is typically used by auditors to perform single audits. But for 2020, there were two. On Dec. 22, 2020, the OMB released the Addendum to the 2020 Compliance Supplement, which is effective for audits of fiscal years ending June 30, 2020, …

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Shuttered venue operators grant program update

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 …

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Measuring investment values

Most investments held by nonprofit organizations are publicly traded and therefore easily valued at fair value or trading value. But sometimes nonprofit organizations also hold investments where it is not so easy to determine the fair value. One example is alternative investments which by definition do not have a readily determinable fair value (RDFV), meaning …

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Electronically filing your forms 1023 and 1023EZ

Organizations that are organized and operated exclusively for charitable, religious, scientific and/or educational purposes must file either a Form 1023 or Form 1023-EZ to obtain recognition of exemption from federal income tax under section 501 (C)(3). The Form 1023 or 1023-EZ must be filed within 27 months of formation to avoid being taxed as a …

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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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Gifts-in-kind: Presentation and disclosure changes

FASB has issued a proposed Accounting Standards Update intended to increase transparency regarding such contributed nonfinancial assets like gifts-in-kind. As many nonprofit organizations rely on these contributions to carry out their programs and related activities – the following is a brief overview of the changes, and how they may apply to your organization. ASU – …

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How should a nonprofit record their PPP loan?

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 …

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