Related party transactions are required to be disclosed in the footnotes of your financial statements. Once you identify who the related parties are, then you need to disclose any transactions between the Organization and those parties. A common example is when the attorney on the board provides services to the Organization for a fee. But …
Let’s be honest, data management in your organization is probably not the most important step in your nonprofit’s hierarchy of needs. And love it, or hate it, there’s a good chance your organization relies on Excel for many tasks, including data management. Here are three useful tips that may make life inside the spreadsheet a …
Many not-for-profit organizations hold special fundraising events with the intent to raise contributions to support their mission, such as galas, balls, dinners, theater parties and auctions. Donor participants purchase tickets to attend the event in exchange for goods or services provided as a benefit to the participant. The direct benefits to the donor participant are …
What is a “collection” in accounting terms? The FASB recognized that there were some conflicting definitions out there and issued a new ASU to get it straightened out. The new definition of collection is: Works of art, historical treasures or similar assets that meet all of the following criteria: (a) they are held for public …
Let’s face it, not many people like change – especially when it comes to their daily routines and their jobs. Change can cause confusion and frustration. I want to take a little time to discuss one of the changes that has affected nonprofit organizations recently. The Financial Accounting Standards Board (FASB) issued Accounting Standards Update …
As many of you may know, the Financial Accounting Standards Board (FASB) issued a new standard ASU 2016-14, Presentation of Financial Statements. One effect this standard has is that it creates consistency on how expenses are presented in the financial statements for all nonprofit organizations. Functional expenses can be disclosed in three different ways: 1. …
Just last week a colleague and I had the privilege of organizing and dropping off all our back to school drive items to a great organization. Henry+Horne does a back to school drive each year in July and we typically pick a different organization to support. This year we were able to hold a drive …
As a nonprofit organization, have you given any thought to how the new revenue recognition standard will impact your nonprofit? Hopefully you have. This new standard is applicable for periods beginning after December 15, 2018, which means the deadline is fast approaching to make sure your organization is ready. Who’s impacted? How do you know …
It is important to note that there is NO way to fully prevent fraud. Collusion between employees will always be a risk in your organization but a strong internal control system will help minimize the damage and limit fraudulent opportunities. Understanding why employees commit fraud is vital in creating a successful prevention strategy. The fraud …
Turning first-time donors into long-term donors is always the goal but not often the reality. Gaining new donors is expensive and time consuming and often an organization will lose on the amount of time and money put into gaining that donor if they give only once. If you feel your organization has a difficult time …