Accounting for contributions and grants has often proven complicated for non-profits, especially when they come with donor-imposed conditions. But 2018 guidance from the Financial Accounting Standards Board (FASB) provided some much-needed clarification of earlier instructions. Provider factor Traditionally, non-profits have taken varying approaches to characterizing grants and...
Your non-profit may have paid little attention to the EU’s General Data Protection Regulation (GDPR), which took effect May 25, 2018. The GDPR revises standards for privacy rights, information security, and compliance in the EU. Yet it also might apply to U.S.-based organizations, such as...
To properly fulfill their fiduciary duties, your non-profit’s board needs certain information. And it is up to the executive director and managers to ensure they have it. This does not mean you have to share every internal email, memo, or phone message. Board members are...
Some of your non-profit’s communications are of interest only to a select group of your supporters. But your organization’s annual report is for all stakeholders — donors, grantmakers, clients, volunteers, watchdog groups, and the government. Some report elements are nonnegotiable, such as financial statements. But you...
If your non-profit owns its own facility, it likely will have more control of work space than if you lease. However, ownership carries risks — and leasing can provide several advantages. If you are trying to make a buy-or-lease decision, be sure to weigh the...
Did you know that the Financial Accounting Standards Board recently extended the simplified private-company accounting alternatives to non-profit organizations? Many merging non-profits, including educational institutions and hospitals, welcome these practical expedients. Here are the details. Alternative for goodwill The first alternative accounting method allows for the amortization...
It is no secret that this is a challenging time for charitable fundraising. In its annual Giving USA 2019 report, the Giving USA Foundation noted a decrease in individual and household giving, blaming such impersonal factors as tax law changes and a wobbly stock market. So...
One of the worst things that can happen to a non-profit organization is to have its tax-exempt status revoked. Among other consequences, the non-profit may lose credibility with supporters and the public, and donors will no longer be able to make tax-exempt contributions. Although loss of...
Who would defraud a kids’ organization? The answer, unfortunately, is that trusted adults sometimes steal from non-profits benefiting children. Youth sports leagues and teams, for example, are ripe for fraud. Cash transactions are common, and coaches and board members usually are volunteers with little accountability. If...
Borrowing is not just for businesses. Many non-profits borrow money for major capital purchases, new program funding, and even to manage current cash flow. But if you are hoping to borrow, it is important to understand that there are likely to be obstacles ahead, including...