Not-for-Profit Automobiles

Completion of year end payroll tax returns, including preparation of Forms W-2, is just around the corner.  The taxability of employer provided automobiles must be taken into consideration when computing taxable wages of an employee. Not-for-profit Organizations often have a vehicle available for employees or have vehicles that are normally used for charitable activities.  The …

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Violations of Loan Covenants – What Does this Mean for my Audit?

It these tough economic times, it is much more common for not-for-profit organizations to have loan covenant violations.  When a loan covenant is not met (for example, a requirement to maintain a maximum debt to tangible net worth ratio), the consequences can be very negative to the entity’s financial statements.  Remember that violating a covenant …

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Classifying Expenses – Is it Program or Supporting Services

Not-for-profit organizations are required to report financial information about the functional classifications of expenses, such as major program services and supporting services. There is often confusion surrounding when to classify an expense as program related versus supporting services (which is usually management & general or fundraising).  Program services are activities that result in goods or …

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