Recognition and Measurement of Debt and Equity Securities

Many not-for-profit organizations receive donations in the form of assets other than cash. Therefore, it’s important to know the proper way to report these donations on your financial statements. Donated investment assets (such as stock) should initially be recorded at fair value. As long as the securities are an asset of the organization, the value …

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Conditional vs Unconditional Promises to Give

By definition, conditional promises to give are donor promises to contribute assets to an organization, assuming a specified future or uncertain event occurs. A condition is not the same as donor-imposed restrictions, but should be considered as a barrier that must be overcome to be considered a contribution. Until the condition is met, the organization …

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Arizona Gives Day is Next Week!

For the third year in a row, Arizona Gives Day is approaching April 7, 2015. AGD, which is a collaboration between the Alliance of Arizona Nonprofits and the Arizona Grantmakers Forum, is a 24-hour online giving campaign meant to unite and connect Arizona residents with the not-for-profit community. Below are highlights from the inaugural Arizona …

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How to Report a Name Change to the IRS

If your nonprofit has changed its name, the name change needs to be reported to the IRS. This can be done on your next Form 990. Here are the requirements for reporting this properly: File your next Form 990 by paper (as opposed to electronically). On page 1 of the Form 990, check the box …

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Filing Form 990-N for New Nonprofits

Is your nonprofit organization in its first few years of existence? Not sure of the Form 990-N filing thresholds? Organizations that have gross receipts that are normally $50,000 or less are required to file a Form 990-N (e-Postcard). Now, you’re probably wondering, what does “normally” $50,000 or less mean. Per the Form 990-EZ instructions, Appendix …

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Common Errors with Net Assets

When auditing an organization, what we often find is that clients are not tracking their restricted net assets. Or if they are tracking it, it is not correct. Some common errors we find include: Board designated amounts are classified as restricted – Board designated amounts, including board designated endowments, should be categorized as unrestricted as …

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Henry+Horne employees volunteer at literacy fair

On Saturday February 28, 14 Henry+Horne employees and their family members volunteered at a literacy fair sponsored by the Valley of the Sun United Way. The fair was open to the public and held at the Martin Luther King Early Learning Center. Attendees were encouraged to participate in numerous literacy games, dexterity exercises and other …

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Private Foundations Need IRS Approval for Grants

Private foundations are often set up with the purpose of giving out scholarships or grants to individuals. Before starting this program, the IRS requires a private foundation to request “approval” from them. There are certain criteria that must be met with the scholarship/grant program. So, when a private foundation submits a request for approval of …

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Non-Profits and Political Activities

All section 501(c)(3) organizations are strictly prohibited from being directly or indirectly involved in campaigning activities for, on behalf of, or against a candidate running for public office, making contributions to political campaign funds, and making a public statement of position on behalf of the organization. However, did you know that 501 (c)(3) organizations are …

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