Form 990 schedule M – Noncash contributions

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 …

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When to issue a 1099 vs a W-2G

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 …

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What is UPMIFA?

If your nonprofit has an endowment fund, you have probably heard of UPMIFA. But what exactly is UPMIFA? UPMIFA is the Uniform Prudent Management of Institutional Funds Act which was approved by the National Conference of Commissioners on Uniform State Laws in 2006 and replaced the Uniform Management of Institutional Funds Act (UMIFA) of 1972. …

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Cash basis vs. Accrual basis. Which method is right for you?

As a nonprofit, which method of accounting is best for your organization? The key in differentiating between cash basis vs. accrual basis lies in the timing of when revenue and expenses are recorded in your accounts. Don’t miss: The four types of 990s When using the cash method of accounting (or modified cash method), revenue …

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The four types of 990s

The IRS requires all tax-exempt entities to file a Form 990 yearly as one of the requirements for maintaining their tax-exempt status. There are four types of 990s based on the size and type of your nonprofit and each type has their own set of filing requirements. Don’t miss: Internal controls in small organizations The …

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Internal controls in small organizations

Proper internal controls are essential for all organizations but can be very difficult for small nonprofits to accomplish due to size of the staff. It is critical that segregation of duties is implemented throughout the financial policies. Don’t miss: Is your nonprofit going through a name change? Four key controls (not all-inclusive) that should be …

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Is your nonprofit going through a name change?

From time to time, a non-profit organization may change their name to better reflect their mission. If your organization is going through a name change, here are the steps needed to report it to the IRS. Don’t miss: Nonprofit board governance best practices Report the name change on the next annual tax return (Form 990 …

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Nonprofit board governance best practices

As part of their regular policies, non-profit organizations may want to consider following these board governance best practices. Whistleblower policy – The benefit of having a whistleblower policy in place is that it encourages staff and others to come forward with any information they have related to fraud or illegal activity. These policies allow those …

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Special Events Revenue: GAAP vs Form 990

For those non-profits that have had special events this can be one of the more difficult areas, specifically when it comes to reconciling between the financial statements and the Form 990. Before we start detailing the differences, it will help to outline the different revenue types related to special events. The different revenue types include …

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Provider Relief Funds, your SEFA and reporting as income

If your organization has a fiscal year-end of 6/30/21, here are a few points to be aware of regarding when to include Provider Relief Funds (PRF) on your SEFA and when to report it as income. Don’t miss: Shuttered Venue Operating Grant update PRF monies received during “Period 1” (which is monies received from 4/1/20- …

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