What is a lease you may be asking yourself? Well, a lease is a contract, or part of a contract, which conveys the right to control the use of identified property, plant, or equipment (an identified asset) for a period of time in exchange for consideration. Control over the use of the identified asset means …
In February 2016, the Financial Accounting Standards Board (“FASB”) issued its highly anticipated leasing standard (Topic 842) in Accounting Standards Update (“ASU”) 2016-02. Private companies and not-for-profit organizations must adopt the new lease accounting standard for fiscal years beginning after December 15, 2021. Don’t miss: The end of LIBOR interest rates The purpose for this …
The London Interbank Offered Rate (LIBOR) has been a key variable interest rate benchmark for years. However, you may have heard that LIBOR would be going away as it saw a decline in its credibility over the last several years. Well, the time has come. Effective December 31, 2021, the international LIBOR interest rates as …
Organizations seeking recognition of exemption under Section 501(a) for being described in section 501(c) (other than 501(c)(3) which requires a form 1023) are required to file form 1024 (application for tax exempt status). Organizations should complete and file this form within fifteen months after the end of the month the organization was founded. Once this …
When a nonprofit organization receives a contribution, they must determine if the contribution is a conditional or unconditional contribution. Don’t miss: A walk through Form 990 Schedule D An unconditional contribution is when a donor contributes to a nonprofit with no conditions or barriers for receiving the contribution. If the contribution is unconditional and also …
Confused by the different parts of Schedule D to the Form 990? Let’s walk through how to use each section as well as learn what information will be needed to complete each. In all there are 13 parts to Schedule D. Here’s all you need to know about the first four. Don’t miss: What’s the …
As nonprofits grow and start receiving more donations, the need for a finance committee and/or audit committee becomes more necessary. These committees are created in addition to the board of directors, not in replace of. So what’s the difference between an audit and a finance committee and how do you choose which one works best …
The SEFA (Schedule of Expenditures of Federal Awards) is a supplemental schedule to financial statements. Under the Uniform Guidance (2 CFR 200), a non-federal entity that expends $750,000 or more in federal awards during the entity’s year is required to have a Single Audit conducted. The SEFA is the primary basis auditors use to determine …
Schedule M of the Form 990 is required to be filled out by tax exempt organizations who received $25,000 or more in noncash contributions (in total) or received ‘contributions of art, historical treasures or other similar assets, or qualified conservation contributions.’ For the noncash contribution, the following information needs to be reported: the type of …
Form 1099 is the miscellaneous income tax form used to prepare and file income information that is separate from wages, salaries or tips. For nonprofits, you must issue this form when you contract individual workers and vendors to complete work for the organization. Form W-2G, Certain Gambling Winnings, is issued to report gambling winnings and …