Archive: not-for-profit

Financial Accounting for PPP Loans

UPDATED June 15, 2020 – The AICPA, in consultation with the FASB and the SEC, has released the following Technical Question and Answer (TQA) 3200.18, Borrower Accounting for a Forgivable Loan Received Under the Small Business Administration Paycheck Protection Program. The following summaries the guidance in this TQA. Paycheck Protection Program (PPP) was created as part […]
June 15, 2020

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. […]
August 3, 2018

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 […]
December 6, 2016

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 […]
October 25, 2016

New ASU 2016-14 Requires Expanded Nonprofit Expense Reporting – Does Your Chart of Accounts Measure Up?

Or more precisely, does your chart of accounts provide, easily, the reporting that is going to now be required of all nonprofits? The new ASU, 2016-14 Not-for-Profit Entities (Topic 958) Presentation of Financial Statements of Not-for-Profit Entities, will require financials statements of nonprofits to disclose expenses by both functional and natural classifications. In English, this […]
October 4, 2016

Be Prepared for FASB’s New Standard for Exempt Organizations

In August 2016 the Financial Accounting Standards Board (FASB) announced the long anticipated Accounting Standards Update (ASU) “2016-14—Not-For-Profit Entities (Topic 958): Presentation of Financial Statements of Not-For-Profit Entities”.   These new guidelines, the first changes to be made to financial reporting in over 20 years, will have a big impact on exempt organizations and their financial […]
September 14, 2016

Note to Not-For-Profits: Don’t Ignore Sales Tax

Making assumptions when it comes to sales and use tax is ill-advised for any entity’s approach to compliance.  This is especially the case for not-for-profits.  Exemption from federal income tax can count for nothing in the sales and use tax world, and states are anything but uniform when it comes to exemptions available for not-for-profits.  […]
August 23, 2016

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 […]
July 15, 2016

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 […]
July 13, 2016

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 […]
June 23, 2016