Exchange transaction or contribution?

When your organization receives a grant, determining if it is a contribution or an exchange transaction can be very difficult. Even after reading the rules, it may still require some judgement. Deciding between the two will determine how the grant will be recorded and when the revenue will be recognized. If the wrong one is …

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Is your nonprofit ready for a rainy day?

As stated by Alan Lakein, “failing to plan is planning to fail.” As the government continues to threaten spending cuts, it becomes increasingly important to have the discussion of whether or not your nonprofit has sufficient operating reserves and liquidity. Operating reserve and liquidity First, let’s discuss what an operating reserve is and how it …

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ACFE 2016 Report to the Nations on fraud

The Association of Certified Fraud Examiners (ACFE) releases a report biannually on fraud in the workplace. The Report to the Nations on Occupational Fraud and Abuse was most recently released in 2016. The report provides statistical information on occupational fraud, with the goal of raising the level of awareness of fraud risk. The 2016 edition …

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2017 annual Giving USA Report released

The Giving USA Foundation (a public service initiative of The Giving Institute) has released their 2017 annual Giving USA Report on Philanthropy in collaboration with The Indiana University Lilly Family School of Philanthropy. Using data from calendar year 2016, the Giving USA report compiles and analyzes data on charitable giving in the U.S in order …

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Have you completed an internal risk assessment?

If an auditor were to ask you, “What is your opinion of your internal controls,” how confident would you be in your answer? Do you really know how strong your internal controls are for your organization? The best way to find out for yourself is to perform an internal risk assessment on your controls. This …

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Reminder: changes to fair value measurement disclosures

As you may recall, the Financial Accounting Standards Board (FASB) issued ASU 2015-07, Fair Value Measurement (Topic 820): Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent) in May 2015. This ASU was issued as a continuation of the FASB’s ongoing initiative to simplify and improve accounting standards. This …

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Henry+Horne volunteers at Ryan House

On Saturday June 24, six other Henry+Horne team members and I had the privilege of volunteering at a local organization, Ryan House. If you have never heard of Ryan House, please take the time to read this and go to their website, because it truly is an amazing organization. Ryan House partners with families to …

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Did you remember the changes to debt issuance costs?

irIn April 2015, as a part of the FASB’s initiative to simplify and improve accounting standards, the FASB issued ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs. Why should we care about an Accounting Standards Update issued years ago? Because for privately held companies and not-for-profit organizations, ASU 2015-03 is effective for financial statements …

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Form 1023-EZ now available electronically

It is official! The Internal Revenue Service (“IRS”) just announced that Form 1023-EZ, Streamlined Application for Recognition of Exemption, is now available online for the public to see for the first time. “The new online availability of Form 1023-EZ data is an important step forward and will allow taxpayers to more easily research information on …

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How does your nonprofit qualify to receive tax credit donations?

The holiday season is usually one associated with giving as the nationwide Giving Tuesday recently passed. This day has become a major revenue raiser for charities, bringing in over $117 million in charitable donations in 2015, according to NBC. If your organization didn’t participate in Giving Tuesday or it didn’t qualify, don’t fret as a …

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