COVID-19 – The Importance of maintaining segregation of duties

Work-from-home mandates intended to stop the spread of the COVID-19 virus have many of us in uncharted territories, which is causing us to react and change the way our organizations operate. The coronavirus has forced many organizations to change the way they operate, but there are certain factors that should not be overlooked, such as …

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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 …

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CARES Act: Forgivable government loans for nonprofits

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

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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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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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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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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 …

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Liquidity and availability

As you are probably aware by now, Accounting Standards Update (ASU) 2016-14, Not-for-Profit Entities – Presentation of Financial Statements of Not-for-Profit Entities is in full effect as it was effective for fiscal years beginning after December 15, 2017. Many of you should have implemented this new accounting standard by now and should have already seen …

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