Board Governance = Tax Compliance?

The revised Form 990 is now old news since it came out back in 2008.  One of the significant changes to the form back then was the addition of the board governance section.  By adding that section, the IRS obviously was communicating their idea of what best practices should be followed by the Board of …

Keep Reading

Fundraising Costs in Nonprofit Entities

I recently read an article at www.abc15.com (Arizona news station) about how more than 250 Arizona nonprofits, who received more than $1 million in a recent Form 990 filing, reported that they did not spend anything on fundraising expenses in raising those funds.  In general, you would expect that if an entity generates contribution income, …

Keep Reading

Social Welfare or Social Club?

I recently assisted a client with completing a Form 1023 to apply for tax exemption with the IRS for a newly form nonprofit entity.  As part of this process, questions came up about whether the organization was a social welfare entity or more like a social club.  The main difference between the two is that …

Keep Reading

How to Tell the Difference Between a Vendor or Subrecipient

How can you tell if you have passed federal funds on to a subrecipient or simply paid a vendor?  The answer to this question may not always be easy.  This is something many not-for-profits struggle with, and it’s extremely important as single audit requirements that an entity which passes federal funds on to a subrecipient …

Keep Reading

Single Audit Revisions – The Government Needs Your Help

Imaging looking at your Schedule of Expenditures of Federal Awards (SEFA) and noting that the total is $502,000.  Some of you might think, “Why couldn’t we have spent $3,000 less and save ourselves the cost of a single audit?”  And you’re not alone.  The United States OMB is working on reforming the Federal Grant process, …

Keep Reading

Are You Using Social Media To Achieve Your Marketing Goals? Part II

Now you have your marketing plan in place and some do’s and don’ts you are ready to get your accounts set up based on your target audience.  If you have defined LinkedIn, Twitter, Facebook and blogging as good social media tools for your organization read on to learn about some great resources for you to …

Keep Reading

Are You Using Social Media To Achieve Your Marketing Goals? Part I

I recently gave a presentation at our monthly lunch ‘n learns about using social media in not-for-profit organizations.  If you are not using social media I strongly encourage you to look into it.  Social media is very affordable (as it is mostly free), easy way to connect with your supporters, great way to maintain relationships …

Keep Reading

A Look into the Importance of Budgets for Governments and Not-for-Profits

Government and not-for-profit budgets are far more important than those for businesses because they are expressions of public policy and often carry the authority of law, preventing public officials from spending outside their budgetary authority.  The increased importance of budgets is reflected in government financial reports by a required report comparing budgeted and actual amounts. …

Keep Reading

The differences between GAAP, cash basis and modified cash basis of accounting

Generally Accepted Accounting Principles in the U.S. (GAAP) are just that – generally accepted. However, it’s not the only choice of accounting basis available to nonprofit and government organizations, and many organizations select another basis of accounting. There could be many reasons for presenting a different basis, one being that it may be more in …

Keep Reading