Quid Pro Quo Donations
Contributions where the donor receives goods or services in return are commonly referred to as “quid pro quo donations.” The amount of contribution is only tax-deductible to the extent a gift’s value exceeds the goods or services received in return. … Read more…
Key Performance Indicators (KPIs) for Nonprofits
As a manager of a nonprofit, you are challenged with a diverse set of responsibilities that are critical to the success of your organization. Key Performance Indicators (KPIs) can be useful tools in your management toolbox. KPIs are quantifiable measures … Read more…
Determining the Proper Date to Recognize Donations
Determining the proper date to report on a donor receipt can be difficult. Ordinarily, a contribution is considered “made” at the time when delivery occurs. This is the time when a donor gives up control of the funds and gives … Read more…
Financial Reporting and the 4 Levels of Service
When asking a Certified Public Accountant (CPA) for a report and financial statements, it is important to know what type is needed and what will be delivered for each type. In the world of CPA services applied to financial statements, … Read more…
Five Tips on Preparing for a Financial Statement Audit
Financial statement audits are a great way to add value to an organization, by ensuring accurate annual reporting to donors, lenders, and the board of directors. However, many times audits can also feel like a stressful and burdensome addition to … Read more…
Donor Acknowledgment for Donations
Donations are essential to non-profit organizations and donor acknowledgment is vital for tax deductibility of charitable donations. All donors are required to obtain a written receipt issued from the organization when making a single contribution of $250 or more. Without a … Read more…
What Story Does Your Organization’s Form 990 Tell?
The IRS Form 990 is a publicly available document and is posted on various charity rating websites such as Guidestar and Charity Navigator. You may even post it on your organization’s website. The Form 990 tells the story of your organization by detailing … Read more…
Clarifying Accounting for Nonprofit Grants and Contracts with ASU 2018-08
In June 2018, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2018-08, Clarifying the Scope of the Accounting Guidance for Contributions Received and Contributions Made. The ASU was issued to improve the accounting guidance for nonprofits with the ultimate goal of minimizing the diversity … Read more…
Recognizing Non-Cash Donations to Your Nonprofit
In addition to cash donations, nonprofit organizations receive non-cash gifts and donations, which must be recognized in the organization’s financial statements. Generally speaking, the criteria for recognizing and accounting for non-cash donations is the same as that for cash donations: … Read more…
Board Review of the Form 990
The IRS requires nonprofit organizations to disclose whether the Form 990 was provided to all members of the Board of Directors prior to filing and to describe the review process used. Board review of the Form 990 is not statutorily required, but the IRS believes such review is important; it is certainly a best practice to have the Board, Finance Committee, or a subset thereof, review the Form 990 prior to filing…
