The latest view on not-for-profit accounting issues

COVID-19: What should nonprofits focus on during this time?

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 …

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What is positive pay?

One of the most common forms of fraud within organizations continues to be check fraud. Positive Pay can be a great tool for nonprofit organizations looking to strengthen their controls and help prevent fraudulent checks from being paid. This tool does, however, come at a cost of both time and money. So, do the pros …

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Audit vs Review vs Compilation

A CPA can perform a number of services for an organization based on the organization’s needs. Typically, the three financial statement engagements are an audit, review or compilation. In all three instances the result is a set of financial statements, that are the responsibility of the organization’s management, where different assurances are provided by the …

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Recording Bequests

When an organization receives communication that they have been included as a beneficiary in a donor’s will, it must determine if this represents an intention to give or an unconditional promise to give. This is imperative as it determines when the bequests are recognized as a contribution. Don’t miss: Top ten things to know about …

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Qualifying to receive tax credit donations in Arizona

Not too long ago, I attended a presentation on Arizona tax credits for donations to qualifying charitable organization, sponsored by Child Crisis Arizona. I had the pleasure of not only attending the event with Donna, an amazing tax partner here at Henry+Horne, but also of listening to an excellent portion of the presentation done by …

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Are you missing a related party footnote disclosure?

This disclosure is easy to overlook but it’s important for proper financial reporting.  A related party footnote disclosure is needed when transactions are recorded in the financials between the preparer and related parties.  Understanding whom and what is considered a related party will help alleviate missed opportunities in disclosing related party transactions.  Per ASC 850 …

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Raffles – Tax implications and withholdings

Holding raffles at a special event is common amongst non-profits, but did you know there are tax implications and responsibilities for the winner and nonprofit organization? Here are a few things to keep in mind as you are preparing to hold a raffle. Nonprofit organizations report raffle prizes to the recipient and IRS on Form …

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Top 10 things to know about Endowments

The accounting for and the responsibilities relating to endowments can be confusing to nonprofit organizations. Accounting staff, management, and the Finance Committee members should all have the knowledge to be able to ensure endowments are tracked correctly and that the organization is complying with UPMIFA. Here are the top 10 things you should know about …

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Steps to apply for Tax-Exempt Status

You have the passion to help and give back to others. You work so hard to get your passion into action and you know that the government offers the opportunity for organizations like yours to gain tax exemption. However, applying for tax-exempt status can be a long and complicated process and it may take months …

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