Board responsibilities

Being a not-for-profit board member is a great way to get involved in causes that are important to you, but before diving in and offering your services, keep in mind there are responsibilities to being a board member. Don’t miss: CARES Act – Forgivable government loans for non-profits Board member responsibilities can be broken down …

Keep Reading

CARES Act: Forgivable government loans for nonprofits

Last week, Congress and the President signed the Coronavirus Aid, Relief and Economic Security (CARES) Act into law.  One of the big items in this Act is the Paycheck Protection Program which provides for a forgivable loan that can be obtained through an SBA lender under the SBA 7(a) loan program. Don’t miss: What should …

Keep Reading

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. Nonprofit organizations are not immune to this impact. In fact, they are probably …

Keep Reading

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 …

Keep Reading

Raffles – Tax implications and withholdings

Holding a raffle 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 …

Keep Reading

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 …

Keep Reading

Who is the PCC and what do they do?

The PCC (Private Company Council) is a sub-organization created by and of the FASB. The PCC’s primary function is to evaluate current financial reporting standards set forth by GAAP and identify opportunities to streamline implementation and general reporting standards for private companies. The FASB and PCC recognize that certain standards are not as impactful for …

Keep Reading

Statement of Functional Expense

The statement of functional expense also referred to by some as a “SOFE”, provides the reader of the financial statement more detail of an entity’s expenses. The SOFE shows the expenses broken down by an expense’s purpose. This statement classifies expenses by its natural expense classification and also its functional expense classification. The natural expense …

Keep Reading