Audit Preparedness and You
Audit season is starting up for organizations with December 31st year ends. Nothing really rings in the New Year like rolling forward those net asset schedules. It is never easy for each side of an audit to understand what it is like from the other perspective unless you’ve been on both sides of the table. […]
Tuition and Housing Revenue Recognition
In the blog Revenue from Contracts with Customers we talked about some of the guidance for revenue recognition for nonprofits. One of the first issues addressed by the American Institute of Certified Public Accountants (AICPA) Not-for-Profit Revenue Recognition Task Force is Tuition and Housing Revenue. This is primarily addressed to institutions of higher education but […]
Revenue Recognition from Contracts with Customers
Most people are aware by now that the generally accepted accounting principles (GAAP) model on revenue recognition is changing. ASU 2014-09, which covered Revenue from Contracts with Customers, was issued in 2014 and it represents—along with leases—one of the most significant GAAP changes in some time. The standard applies to all types of entities that […]
Can Your Nonprofit Convert into a For-Profit?
There are occasions where a 501(c)(3) nonprofit may wish to convert into a for-profit entity. This typically occurs for nonprofit organizations that exist primarily on program service revenue, as opposed to contributions, who one day find that most of its “competitors “ are for-profit businesses. Is this the right move for your nonprofit organization? Additional reasons […]
Staying on Top of the Standards
Association and nonprofit financial teams have a never-ending stream of work comprised of budgets, monthly and annual closes, annual audits, and constant interruptions from people wanting information. The ability to stay current on financial accounting changes is often relegated to updates from an organization’s public accounting firm of record. Often times because those seeking the information […]
The Aronson Foundation Supports Childhelp
The Aronson Foundation recently gave a generous gift to Childhelp in support of the 2nd Annual Childhelp Shining Stars Gala at the recommendation of Partners Jack Koniszewski, Lexy Kessler, and Tim Cummins. The 2nd Annual Childhelp Shining Stars Gala took place on April 22, 2017 at the Ritz-Carlton Tysons Corner. All proceeds benefited the Childhelp Alice […]
Mitigating Risk from Your Third-Party Vendors
A third-party vendor is an ancillary process outside the control of your organization, which performs a function or provides a service that isn’t central to your operating purpose, for example, a third-party payroll company. Although your exempt organization may rely on third-party service providers, your management team carries the ultimate responsibility for maintaining an effective internal control system […]
A Welcome Break on the Fee for 1023-EZ Application for Tax Exempt Status
Effective July 1, 2016, the application fee for filing the Form 1023EZ has been lowered to $275. The old fee was $400. That’s a savings of $125, and is a welcome relief to small nonprofits applying for tax exempt status. The new streamlined Form 1023-EZ, Streamlined Application for Recognition of Exemption Under Section 501(c)(3) of […]
IRS Issues Guidance on Notification to Operate as a 501(c)(4) Social Welfare Organization
The IRS on July 8, 2016, issued temporary regulations describing how to communicate with the IRS if you are starting a new social welfare organization, also known as a Section 501(c)(4) organization. A new online form, Form 8976, is required to be submitted to the IRS electronically within 60 days after being established. If you […]
The New Overtime Rule and Its Impact on Nonprofits
“It is highly misleading to suggest that most nonprofits will not need to worry about the revised [overtime] rule. Nonprofit tax status has no bearing on whether an employer is required to pay its employees overtime,” states Michael Eastman, an attorney with NT Lakis in Washington, D.C. Eastman also is counsel to the Society for Human Resource […]