Accepting government grants or funding can make carrying out your organization’s goals or mission a reality. If your organization was awarded any government funding, including COVID-related relief money (included at the end of this post), it is important to know when this type of funding triggers the need for a Single Audit to make sure your organization stays compliant with federal programs.
If your organization accepted Federal funding in the past year, you may be required to perform an annual audit. There are different kinds of audits.
Expanding your donor pool is a great way to develop new funding sources for your nonprofit. Before you decide to widen your reach, you will want to make sure you are compliant with every state’s fundraising regulations where you plan on fundraising. Often, this will mean filing a charitable solicitation registration (CSR).
The state of Ohio recently amended Ohio’s General Corporate Law to allow for the creation and governance of benefit corporations. Benefit corporations are a kind of bridge between the traditional for-profit and non-profit models businesses traditionally use to structure their corporation. They try to balance earning a profit and supporting a purpose that betters society or the environment.
Reconciling QuickBooks, in either the desktop or online version, is just like balancing your personal checkbook; your bank balance should agree to your QuickBooks account balance plus or minus items that have not yet cleared the bank. Every month, collect your bank statements to make sure you’ve entered every transaction into QuickBooks.
As a nonprofit, your tax-exempt status with the IRS is based on how your organization is organized and operated. Your tax-exempt status exempts your organization from federal income tax on income related to your organization’s exempt operations. However, in the process of actually operating your nonprofit, there are times you’ll engage in a certain amount of activity unrelated to your exempt operations that produces income. This income is called unrelated business income and it may be taxable.
The mission of your nonprofit is the foundation for all you do. How can you make sure what you build on your mission is strong? You need the support of clear and defined policies to help build out the programs that will benefit the groups your nonprofit is focused on. Here are the top seven policies your nonprofit needs now.
The Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2020-07, Not-for-Profit Entities (Topic 958): Presentation and Disclosures by Not-for-Profit Entities for Contributed Nonfinancial Assets in September 2020. The FASB aims to make the presentation and disclosure of gifts-in-kind (GIKs) more transparent and consistent across nonprofit accounting.
Implementing the financial accounting standards board (FASB) Accounting Standards Update (ASU) 2016-14, Presentation of Financial Statements for Not-for-Profit entities can be confusing. The updated standard states nonprofits must present an analysis of expenses by their function and natural expense classifications in one location, such as in a statement of functional expenses.
Lease accounting standards are changing, aiming to improve transparency and make it easier to compare statements. Here’s what nonprofits need to know.