Touchdown or Fumble? NFL Gives Up Tax Exempt Status

In March, the ownership of the National Football League (NFL) voted to give up their tax exempt status and become a taxable entity. The majority of the income generated by the league is from television rights fees, licensing agreements, sponsorships, and tickets sales, which are generated by the 32 individual teams and already taxed. The …

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Arizona Gives Day Results

Arizona Gives Day, the annual one-day online giving campaign, was hosted by the Alliance of Arizona Nonprofits and the Arizona Grantmakers Forum for the third year on April 7. The first Arizona Gives Day event began in 2013 in order to rekindle the funding that typically slows after the holidays. In 2013, Arizona Gives Day …

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Henry+Horne team members garden for community service at the Growhouse

This past Sunday employees and family members from Henry & Horne volunteered at the Growhouse in downtown Phoenix. We split into teams to accomplish a few tasks while we were there. One team prepped a garden bed and planted squash. Another team pulled weeds and helped clean up the grounds at the Growhouse. The staff …

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Contributions Not Reported on the Form 990

There are quite a few differences between GAAP accounting and the rules for reporting on the Form 990. I was recently reviewing the rules on reporting contributions on the 990 and thought I would share a few that are often overlooked. Contributions that are not reported on the Form 990: Unreimbursed expenses of officers, employees, …

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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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