Blogging Beyond the Numbers

Have you ever compared your financial statements to your IRS Form 990 and thought to yourself, "Why don't these two match?" This is a question we receive from a number of clients and we have some answers! Here are some of the most common differences between a nonprofit's financial statements and IRS Form 990 Unless specified, most nonprofit financial statements are prepared in accordance with Generally Ac...

Are you tired or spending hour after hour gathering donor name and address information to submit with your organization’s 990 each year? If so, we may have great news for you. The IRS has announced that they will exercise their authority to grant relief to certain nonprofit organizations regarding donor information reporting requirements in their annual tax filings. This relief, however, is not applicable...

One of the decisions an organization faces during its annual budget process is whether or not to engage an external CPA firm to conduct an audit of its financial statements.  Some organizations are required to have an audit due to external regulations (compliance with a grant agreement and/or state regulatory authority) while others decide to have an audit conducted for overall “good practice.” ...

What is ASU 2018-08 and will it Impact Me? On June 21, 2018, the Financial Accounting Standards Board (FASB) issued Accounting Standard Update (ASU) 2018-08:  Clarifying the Scope and the Accounting Guidance for Contributions Received and Contributions Made.  This ASU will impact all organizations that receive or make contributions of cash or other assets.  The only transactions excluded from this ASU a...

All recipients of federal awards should familiarize themselves with the changes in the Uniform Guidance.  Even if your federal awards are passed through the state or another organization, Uniform Guidance applies to goods and services charged directly to federal awards.  It does not apply to goods and services charged to indirect costs. General procurement standards Every non-federal entity receiving fe...

Everyone loves a good story.  Storytelling has a long tradition in our culture.  Research has shown our brains are wired for the structure and engagement of a story.  A story has the potential to instruct, influence, and inspire. Many nonprofits have found this to be true.  Donors are drawn into the mission and needs of the nonprofit through stories of how they are serving their clients.  Imagine he...

Due to the changes in the Federal Tax Law, nonprofit employers will have to pay a 21% Unrelated Business Income Tax (UBIT) on transportation benefits including parking and transit passes provided to employees starting January 1, 2018. Employers are NOT prohibited from providing these benefits, but the effect the tax could have on your nonprofit’s finances should be considered. Some employers will continue...

When an organization receives Federal funds from a pass-through entity (pass-through), it will be classified as either a subrecipient or a contractor, depending on the structure of the agreement. If the funds are a subaward, the organization will be treated as a subrecipient, while if the funds come through as a contract, the organization will be treated as a contractor. The way the organization is c...

The 2017 tax reform legislation is the biggest change to the tax law since 1986. While many of the changes affect individuals and for profit entities, there are some important changes that affect nonprofits. With more than 1.5 million nonprofits in the United States and over 10% of the workforce being employed by nonprofits, the changes will affect the nonprofit community. How donations wi...

Successful audits hinge on communication and documentation. As such, preparing for an audit can either be an easy or daunting task depending on your experience and the state of your financial records. Wegner CPAs is committed to making the audit process be a positive experience. Here are the secrets from an auditor’s perspective Obtain the audit preparation list from your auditor. This is a vital co...