Recognition and Measurement of Debt and Equity Securities

Many not-for-profit organizations receive donations in the form of assets other than cash. Therefore, it’s important to know the proper way to report these donations on your financial statements. Donated investment assets (such as stock) should initially be recorded at fair value. As long as the securities are an asset of the organization, the value …

Keep Reading

Conditional vs Unconditional Promises to Give

By definition, conditional promises to give are donor promises to contribute assets to an organization, assuming a specified future or uncertain event occurs. A condition is not the same as donor-imposed restrictions, but should be considered as a barrier that must be overcome to be considered a contribution. Until the condition is met, the organization …

Keep Reading

Arizona Gives Day is Next Week!

For the third year in a row, Arizona Gives Day is approaching April 7, 2015. AGD, which is a collaboration between the Alliance of Arizona Nonprofits and the Arizona Grantmakers Forum, is a 24-hour online giving campaign meant to unite and connect Arizona residents with the not-for-profit community. Below are highlights from the inaugural Arizona …

Keep Reading

Common Errors with Net Assets

When auditing an organization, what we often find is that clients are not tracking their restricted net assets. Or if they are tracking it, it is not correct. Some common errors we find include: Board designated amounts are classified as restricted – Board designated amounts, including board designated endowments, should be categorized as unrestricted as …

Keep Reading

Functional Expense Allocation

It’s important as a not-for-profit organization to accurately allocate expenses among your program(s), management and general, and fundraising. Many donors restrict grants and contributions specifically for the entity’s programs. Therefore, it’s vital to only allocate expenses that are related (either directly or indirectly) to the purpose or mission of the not-for-profit to the program functional …

Keep Reading

How to Clean Up Old, Uncleared Checks in QuickBooks

There are a number of reasons why you may have old, uncleared checks on your books. Whatever the reason, it is important to clean any checks that should be cleared off your books in order to make sure you are not overstating your cash balance. First, you need to determine if the money is still …

Keep Reading

IRS Form 1098-C

Whenever a non-profit organization receives a donation of a motor vehicle, boat, and/or airplane that has a value of more than $500, they are required to file a Form 1098-C with the IRS. These forms must be filed on an official printed version that is scan-able by the IRS. You can obtain these forms by …

Keep Reading

Are you baffled by Schedule A?

Schedule A of the Form 990 is required to be completed by all public charities. This schedule shows the IRS how the Organization is a public charity (versus a private foundation) and also proves that the Organization is receiving enough support from the general public, in order to maintain its status as a public charity. …

Keep Reading

Requirements for Communications to Attendees at Your Special Event

You may be aware of the rule for sending an acknowledgement to a donor after receiving a contribution, but are you also aware of the IRS requirements when someone attends a fundraising event? Usually, special events provide some sort of benefit back to the attendee, so that only a portion of their ticket cost is …

Keep Reading

Employees Donate School Supplies to At Risk Youth

Henry & Horne team members collected over 800 items for a back-to-school drive to benefit Youth and Families First. From backpacks, notebooks and calculators to binders, tissues and plastic bags, our team members overwhelmingly showed their generosity by donating so many supplies. Youth and Families First is a non-profit direct services provider. The organization provides …

Keep Reading