As states open for business and the need for social distancing recedes, your non-profit organization may want to think about scheduling an in-person retreat for your board of directors. Members are likely to welcome the opportunity to see one another again in person and a...
If your non-profit organization accepts contributions of nonfinancial assets, such as land, services, and supplies, you should know about Financial Accounting Standards Board rules approved last year. Accounting Standards Update, Not-for-Profit Entities (Topic 958): ‘Presentation and Disclosures by Not-for-Profit Entities for Contributed Nonfinancial Assets’ is...
If your non-profit periodically prepares internal financial statements for your board, you may have noticed that your auditors propose adjustments to these interim statements at year end. Why do auditors do this? Generally, it reflects differences due to cash basis vs. accrual basis financial statements....
Non-profit organizations may operate under the assumption that their missions and their board members’ good intentions protect them from litigation. Sometimes, this assumption is proven wrong with a lawsuit. To protect your leaders from financial exposure, consider directors and officers (D&O) liability insurance. This coverage...
Non-profit organizations are different from for-profit businesses in many vital ways. One of the most crucial differences is that under Section 501(c)(3), Section 501(c)(7), and other provisions, non-profits are tax-exempt. Keep in mind that your tax-exempt status is fragile. If you do not follow the...
High-net-worth individuals donated $5.8 billion during the first six months of the COVID-19 pandemic — generous giving by most standards. This is according to a recent report, ‘Philanthropy and COVID-19 in the first half of 2020,’ from the Center for Disaster Philanthropy and information service...
On March 30, the Financial Accounting Standards Board (FASB) published an updated accounting standard on events that trigger an impairment test under U.S. Generally Accepted Accounting Principles (GAAP). This simplified alternative may provide relief to private companies and non-profit entities that have been adversely affected...
Many non-profits are just starting to emerge from one of the most challenging environments in recent memory due to the COVID-19 pandemic. Even if your organization is in good shape, do not get too comfortable. Financial obstacles can appear at any time, and you need...
According to The NonProfit Times, only 41 percent of non-profits have whistleblower policies. Perhaps non-profit leaders believe their organizations are too small or collegial to worry about illicit activities — let alone people reporting them. Or perhaps a whistleblower policy seems like one more thing...
No one needs to tell non-profit organizations how tough the past year has been. According to the John Hopkins Center for Civil Society Studies, 7.7 percent of non-profit workers — nearly one million people — lost their jobs between February 2020 and January 2021. An...