The latest view on not-for-profit accounting issues

Feed My Starving Children charity event

This past week our team members volunteered at Feed My Starving Children to package meals for malnourished children.  All volunteers combined prepared 60 boxes of food which consists of 2,160 bags. This equates to feeding approximately 35 children for an entire year! Feed My Starving Children’s approach is simple: children and adults hand-pack meals specifically …

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Overhead Myth – Regulating Administrative Expenses

I was surprised this morning when I opened my email and saw the news: Today, the CEOs of all three of the major charity watchdog groups (GuideStar, BBB Wise Giving Alliance, and Charity Navigator) published a letter “condemning the use of administrative expenses as a measure of nonprofit performance.” This is HUGE news for the …

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Why Your Not-for-Profit Organization Needs a Gift Acceptance Policy

When I suggest that a not-for-profit organization should consider adopting a gift acceptance policy, my words are often met with some degree of surprise.  Why would a not-for-profit soliciting contributions consider turning any contributions down?  Well, there are lots of reasons – but the most important one it that a gift acceptance policy can protect …

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Top 12 Points to Avoid Endowment Confusion

Here are twelve points on how to avoid endowment confusion. These points are in no particular order. (1)  UPMIFA is a uniform law.  Each state has adopted their own version of this law (except for Pennsylvania).  See upmifa.org for more information. (2) If a permanent endowment goes underwater, the negative amount in unrestricted net assets is considered …

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How Can You Lose Tax Exempt Status? With EBT’s

Tax exempt entities can lose their tax exempt status with the IRS if they are involved in private inurement which applies to exemptions under 501c3, 4, 6 and 7.  It basically means that insiders can’t personally benefit in any way through the “use” of a tax exempt entity.  Funds can be received from a tax …

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Voided vs Canceled – What Type of Check is your Auditor Talking about?

My favorite response when I ask about canceled checks is “we don’t have very many of those” – especially when it is an organization that is large enough to merit a separate A/P clerk so they transact hundreds of checks a month. So, where’s the confusion coming from? They think I’m asking about voided checks, …

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Can Gift Cards Jeopardize Your Volunteer Force?

If you are an organization that relies heavily on volunteers, you likely struggle to find ways to say “Thank You” to those who give of their time, especially those few stellar volunteers who have either been with your organization for a long time, or who have spent extraordinary amounts of time serving your cause. While …

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Arizona Charter Schools Help Lead the Way

Studies show that charter schools are growing by numbers and students.  Among the largest growth leaders is the State of Arizona.  At least 145,000 students in Arizona are now enrolled in charter schools, and the results of those schools are also making large strides towards better education with more and more Arizona students becoming competitive …

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Charter School Compliance Questionnaire Update

The Arizona State Board for Charter Schools recently released the USFR Compliance Questionnaire for the fiscal year ended June 30, 2012. Although there were not many changes to the questionnaire from the previous year, there is one notable question that was added to the attendance section that related to the residency requirements that schools are …

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