In a recent study, 88% of nonprofits involved in a merger felt that their organization was better off post merger in terms of achieving organizational goals and increasing impact. So discovered a team of Northwestern University researchers who studied 25…
In its Tax Exempt and Government Entities FY 2017 Work Plan, the IRS reported on the nearly 5,000 examinations of exempt organizations it conducted in the 2016 fiscal year. The exams focused on five issues: exemption (including nonexempt purpose activity…
With baby boomers — the largest and wealthiest generation in U.S. history — expected to transfer trillions of dollars worth of assets in the next few decades, this could be the right time to launch an endowment. Nonprofits have long…
Whether or not your nonprofit uses an independent auditor, you can employ moves from an auditor’s playbook to get a better view of your organization’s revenue picture. Techniques such as pinpointing year-to-year trends and benchmarking to other nonprofits can be…
Every organization — whether for-profit or nonprofit — is at risk of falling victim to costly acts of fraud. Nonprofits, though, have some common characteristics that can make them particularly susceptible to such schemes. Fortunately, you can help combat the…
According to this year’s Nonprofit Employment Practices Survey™ from Nonprofit HR and GuideStar, the ability to pay competitive wages ranks as the top staffing challenge faced by nonprofits for the fifth consecutive year. Since 2014, the second largest challenge has…
Microsoft’s philanthropic arm has announced that it’ll donate $1 billion in cloud computing resources over the next three years to nonprofits and nongovernmental organizations worldwide. The donation is part of an initiative that includes providing a suite of Microsoft cloud…
Practice Leader: Susan M. Greggo, CPA, Partner, Director of Not-for-Profit Services and Illinois CPA Society Accounting and Audit Sub-Committee Chairperson The Financial Accounting Standards Board (FASB) recently released its first update to the financial reporting rules for nonprofits since 1993.…
Success for not-for-profits (NFPs), regardless of their type or size, is built on a firm foundation of fiscal accountability and governance. Achieving these oftentimes elusive goals requires more than traditional business know-how and insights into industry and sector trends. It…
Practice Leader: Susan M. Greggo, CPA, Partner, Director of Not-for-Profit Services and Illinois CPA Society Accounting and Audit Sub-Committee Chairperson Those golden rules may need more than polishing Has your organization outgrown its bylaws? Sometimes, as a nonprofit expands and…
If there’s one important takeaway from the 2016 M+R Benchmarks Study, it may be how rapidly the nonprofit universe is changing in the face of online fundraising, marketing, and advocacy efforts. Currently in its tenth year, the study’s goal is…
Recently established social welfare organizations must now notify the IRS that they are operating as tax-exempt organizations under Code Section 501(c)(4) of the tax law. The new requirement was included as a provision in the Protecting Americans from Tax Hikes…
More and more nonprofits are joining forces to better serve their client populations and cut costs. But such relationships can come with complicated financial reporting obligations. Your organization’s reporting requirements will depend on the type of relationship you enter. Collaborative…
Nonprofit organizations welcome gifts of cash. But what if a donor wants to give a noncash gift, such as real estate, appreciated stock, or a work of art? Some gifts may not be appropriate for your organization, while others may…
In May, the U.S. Department of Labor (DOL) issued a final rule updating white collar overtime regulations, increasing the exemption thresholds and extending overtime pay protections to over four million workers within the first year. How will the new rules…
Attorney General Lisa Madigan warns Illinois charities of elaborate donation scam. This sophisticated email scam is offering Illinois charitable organizations large and unsolicited donations from a man who claims to be carrying out the final wishes of his deceased mother.…
The following are some recent tax-related developments of interest to nonprofit organizations. Donee reporting regulations. The IRS has withdrawn proposed regulations regarding the contemporaneous written acknowledgments taxpayers must have on hand to substantiate their charitable contributions of $250 or more.…
The Protecting Americans from Tax Hikes (PATH) Act of 2015, signed into law late last year, restored and made permanent several federal income-tax provisions designed to encourage charitable giving. Contributions from IRAs Charitably minded individuals age 70½ and older continue…
The Financial Accounting Standards Board (FASB) is working on a proposal that would make substantive changes to not-for-profit financial statement reporting.* The FASB’s objective is to improve net asset classification requirements and the information provided in the financial statements and…
To properly oversee and manage a nonprofit organization, its board members need to receive accurate and timely information about the organization’s finances. But which financial information will be most helpful, and how detailed should it be? There is no single…
