Archive: Nonprofit

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Nonprofit Organizations: Accounting for Interest-Free Loans

Nonprofit organizations often receive loans that are interest free. Because these are not normally obtainable through traditional financing options, the American Institute of Certified Public Accountants (AICPA) believes a restricted contribution element should be recognized to reflect the value of an interest-free loan. In addition, interest expense should be recognized over the life of the […]

IRS Issues Guidance on Parking Benefit Expenses to Be Included as UBTI for Nonprofits

The Internal Revenue Service (IRS) has issued Notice 2018-99, Parking Expenses for Qualified Transportation Fringes Under Section 274(a)(4) and 512(a)(7) of the Internal Revenue Code, which provides some clarity to nonprofits for determining the amount of increase to unrelated business taxable income (UBTI) for parking benefits provided to employees. This new UBTI is a result […]

How Mobile Apps Can Benefit Your Association

For most people, mobile apps have become a major part of everyday life. People use mobile apps to do just about anything we can imagine, including to read news, chat, connect with friends and colleagues, and plan events. Associations can take advantage of many of these functions by getting their own custom-branded app. There are […]

Do You Know the Laws Governing Unclaimed Property in Your State?

It is not uncommon for nonprofit organizations to have uncashed checks, such as refunds from clients or customers or payments to vendors. These are only just some of the most common examples of unclaimed properties that could occur. By definition, unclaimed properties are intangible or tangible property that has been abandoned or lost by its rightful owner […]

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. […]

New IRS Form 990 Audit Selection Methodology

The IRS has recently improved its audit selection process shifting from a subjective selection to a data-driven selection. Previously, subjective audit selection indicated that audits were driven by issue-specific determination. For example, following an IRS study on hospitals, more hospitals were selected to be audited compared to previous years. Similarly, following an IRS study on […]
January 6, 2017

What You May Have Missed: Cost-Saving Initiatives and Best Practices for Exempt Organizations

On November 9, Aronson LLC, Arent Fox, and Morgan Stanley hosted an executive summit for exempt organizations that featured strategies for making and saving money, and tips on top governance issues. Missed the event? Here is a brief recap. The event kicked-off with keynotes delivered by former United Way CEO and Chair of the Alexandria […]

Standard Changes for Consolidating Entities

An accounting standard update from FASB known as Not-for-Profit Entities — Consolidation (Subtopic 958-810) Clarifying When a Not-for-Profit Entity That Is a General Partner Should Consolidate a For-Profit Limited Partnership or Similar Entity, is on the horizon. The exposure draft of this standard has been through the comment period, which likely means the issuance is […]

How Do I Account for Cloud Computing?

On April 15, 2015, the FASB issued ASU 2015-05 focusing on customer’s accounting for internal-use software especially fees paid in a Cloud Computing Arrangement (CCA). From time to time, lack of explicit guidance about fees paid in a CCA has caused unnecessary costs to organizations in extra accounting fees. The major changes in the update […]

What Is a Joint Activity?

A joint activity is the combination of fundraising and another function incorporated into a single activity. When accounting for joint activities, the criteria of purpose, audience, and content must be met to allow for the fundraising and other programs to be accounted for separately. If these three criteria are not met, the entire joint activity […]