Nonprofit Issues Newsletter, Spring 2016
Learn how to create and implement an effective ERM strategy, correctly allocate joint costs, benefit from micro-donations, and assess the health of your church. Plus Newsbits on the FASB Not-for-Profit Financial Statements Project, new guidance on lease accounting, a phishing scheme involving W-2s, and more.
The OMB Rule on Indirect Costs: What You Need to Know
The Office of Management and Budget’s Uniform Guidance (the Omni Circular) has brought sweeping changes for nonprofits that receive federal funding. Nonprofits need to get up to speed on their rights and responsibilities under the rule — to avoid forfeiting reimbursement dollars.
Minister’s Housing Allowance and Retirement Plan Contributions
The minister's housing allowance is a unique tax component that can provide substantial benefit to qualifying employees. However, many nonprofits don’t realize that including this nontaxable allowance when calculating retirement plan contributions could have significant consequences. Here's what you need to know.
FASB Issues New Guidance on Lease Accounting
On February 25, 2016, the FASB issued an Accounting Standards Update (ASU) on financial reporting for leasing transactions. Here are some helpful resources.
FASB Not-For-Profit Financial Statements Project Update
The Financial Accounting Standards Board (FASB) Exposure Draft issued in 2015 will be addressed by the Board in two phases. The following identifies the components of tentative board decisions to date.
Is Your Organization Managing Risk – or is Risk Managing You?
All entities make decisions based on risk every day. That means Enterprise Risk Management (ERM) is a process that all higher education institutions, churches, schools, and ministries are already implementing. The question is: Is your organization managing the ERM process – or do you just react to risk after the fact?
New Employee Benefit Plan Service Helps Nonprofits Assess Compliance
Many nonprofit organizations provide a retirement plan for their employees. But unless the plan is already required to have an independent audit, most organizations are unaware of the high standard of fiduciary responsibility the IRS and Department of Labor place on plan sponsors to oversee their benefit plans and operate them in accordance with regulations.
With Micro-Donations, Good Things Can Come in Small Packages
Donations to nonprofits plunged during the latest recession and have been edging their way to healthier levels ever since. But many contributors today can afford only small gifts in a still-tight economy. Enter the micro-donation.
Joint Costs: The Right Way to Allocate
With so much attention these days paid to fundraising ratios, many nonprofits feel pressure to minimize their fundraising expenses. This makes allocating joint costs — costs associated with activities that have both fundraising and other functions — appealing. But before you take that step, make sure you’re familiar with some frequently misunderstood accounting rules.
Ten Steps to Finalizing Your Annual Budget
No organization has an infinite supply of resources. Follow these steps to create a realistic and effective budget that will help your organization use the resources you do have in a way that accomplishes your goals and furthers your mission.