Recipients of COVID relief could run into surprise audits
The Paycheck Protection Program (PPP), which has offered 100% forgivable loans to eligible organizations, has provided critical support during the pandemic. But Accounting Today warns that nonprofit borrowers could unexpectedly find themselves undergoing “single audits” of their compliance with the federal program’s requirements. So could organizations that receive assistance under the recent American Rescue Plan Act (ARPA). Continue reading NEWSBYTES
All posts by Mike Sperling
Keep a close eye on restricted contributions
Nonprofits are expected to act as good stewards of all contributions. But restricted contributions, as the name implies, impose a higher level of responsibility. Dropping the ball when it comes to ensuring that such contributions are used as intended can lead to adverse consequences, making detailed and accurate tracking essential. Continue reading Keep a close eye on restricted contributions
Size counts
Your midsize or large organization might benefit from a CFO
As a nonprofit leader, you’re used to overseeing all aspects of your organization. However, you might think, at times, that having a financial expert run that side of the operation could be a plus. This might be true, but hiring a chief financial officer (CFO) is a weighty decision that can have a large impact on your organization. Continue reading Size counts
A year of COVID philanthropy: What it tells us going forward
Budgeting is always, to some degree, an exercise in uncertainty. But the current budgeting environment is unlike any experienced before. As a result of the COVID-19 crisis, many nonprofits have seen deep declines in revenue while the demand for their services has spiked. These and other pandemic-related factors may call for organizations to take a different approach to budgeting. This article discusses rolling budgets and reforecasting. A sidebar reflects on how nonprofits should budget for COVID-19-related expenses, such as sanitation-related services and employee assistance. Continue reading A year of COVID philanthropy: What it tells us going forward
NEWSBYTES
This issue’s “NEWSBYTES” reports on a recent Charity Navigator acquisition, registered voters’ views of nonprofits’ COVID response and a survey that examined Americans’ trust of nonprofits. Continue reading NEWSBYTES
Prevent the UBIT trap of corporate sponsorships
Landing a corporate sponsorship is an accomplishment, especially in today’s economy. If you do get lucky, you’ll want to prevent unrelated business income tax (UBIT) from cutting into your new income. If you meet the requirements for a qualified sponsorship payment exception, you should be in good shape. Continue reading Prevent the UBIT trap of corporate sponsorships
FASB issues new rules for reporting gifts-in-kind
More information will be required from nonprofits that use Generally Accepted Accounting Principles (GAAP) and receive nonfinancial assistance — also known as gifts-in-kind — than in the past as the result of a new Financial Accounting Standards Board (FASB) rule. Accounting Standard Update (ASU) No. 2020-07, Not-for-Profit Entities (Topic 958): Presentation and Disclosures by Not-for-Profit Entities for Contributed Nonfinancial Assets, is intended to expand the transparency around such gifts, including how they’re used and valued. Continue reading FASB issues new rules for reporting gifts-in-kind
Budgeting in the shadow of COVID-19
Budgeting is always, to some degree, an exercise in uncertainty. But the current budgeting environment is unlike any experienced before. As a result of the COVID-19 crisis, many nonprofits have seen deep declines in revenue while the demand for their services has spiked. These and other pandemic-related factors may call for organizations to take a different approach to budgeting. This article discusses rolling budgets and reforecasting. A sidebar reflects on how nonprofits should budget for COVID-19-related expenses, such as sanitation-related services and employee assistance. Continue reading Budgeting in the shadow of COVID-19
Newsbytes
Struggle ensues to recruit young diverse boards
Although 95% of nonprofits are actively recruiting to diversify their governing boards, 87% have struggled to find the right recruitment channels to do so. And more than half (51%) don’t think their boards reflect the communities they serve. Continue reading Newsbytes
Pandemic, civil unrest spotlight potential of mutual aid
The COVID-19 pandemic and the response to racial justice issues have brought greater attention to mutual aid. Although the concept is nothing new, its emergence in recent times highlights the possibility that nonprofits can partner on mutual aid projects to enhance their mission- and cost-effectiveness when resources are tight. With the need for services so high, it’s worth exploring. Continue reading Pandemic, civil unrest spotlight potential of mutual aid