Don’t let IRS compliance issues drag down your nonprofit

In recent years, the IRS has increased its scrutiny of tax-exempt organizations. Most not-for-profits that fail to file Form 990 for three consecutive years will have their exempt status revoked automatically. The IRS is also cracking down on nonprofits that don’t properly classify workers as employees, don’t report unrelated business income, participate in off-limits political […]

Trust and internal controls can coexist in your nonprofit

Within a period of just a month, a Minnesota woman was charged with skimming more than $300,000 from her animal rescue charity, a Florida man was charged with multiple felonies for running several charities for his personal benefit, and a New York man was sentenced to 18 months in prison for defrauding his trade association employer. Not-for-profit […]

4 ways to prepare for next year’s audit

Every fall, CPAs are busy preparing for audit season, which generally runs from January to April each year. This includes meeting with clients, assigning staff, and scheduling fieldwork. Likewise, organizations with calendar year ends should prepare for audit fieldwork. A little prep work this fall can help facilitate the process, minimize adjustments and surprises, and […]

Supplement your financial statements with timely flash reports

Timely financial information is critical to a successful business. In today’s dynamic marketplace, you may need to act fast to ward off potential threats and risks — and jump on new opportunities. But if you wait until your financial statements are released to react, you’ll likely miss out. Flash reports can provide real-time data that […]

Nonprofits: Ready, set, audit!

By scheduling annual financial statement audits, you can demonstrate your organization’s financial fitness to donors and other stakeholders. Plus, state governments and other grant makers may mandate them. But don’t assume that auditors will simply swoop in and take care of everything related to the process. You’ll need planning and preparation to make your audit effective, […]

Overcoming benchmark resistance in your nonprofit

If your not-for-profit sets performance goals — and most organizations should — then you need benchmarks to measure your performance. Staffers and your board may not enthusiastically embrace benchmarking at first. But if you can show its value and make the process easy, you should be able to get everyone on board. Mission-focused work Employees […]

Is QuickBooks right for your nonprofit?

Not-for-profit organizations exist to achieve nonfinancial or philanthropic goals, not to make money or build value for investors. But they still need to monitor their financial health — that is, how much funding is coming in from donations and grants and how much the organization is spending on payroll, rent, and other operating expenses. Many […]

Why can’t my profitable business pay its bills?

If your profitable business has trouble making ends meet, it’s not alone. Many business owners mistakenly equate profits with cash flow, leading to shortfalls in the checking account. The truth is that there are many reasons these numbers might differ. Fluctuations in working capital Profits (or pretax earnings) are closely related to taxable income. Reported […]

Nonprofits: 4 signs that something may be awry

Many not-for-profit leaders are nervously watching macroeconomic signs — inflation, rising interest rates, and the possibility of recession — to predict how their organization will fare in the coming months and years. But threats to your nonprofit’s well-being may be closer than you think. Whether you’re an executive or board member, make sure you’re looking […]

Keeping in compliance with Uniform Guidance

If your not-for-profit receives significant federal funds, it may be subject to the Office of Management and Budget’s Administrative Requirements, Cost Principles, and Audit Requirements (Uniform Guidance). And if your nonprofit spends $750,000 or more in federal awards in a fiscal year, it probably faces a single audit — an annual financial statement audit and […]