Blogging Beyond the Numbers

The Financial Accounting Standards Board (FASB) has issued made decisions to the proposal that could have a significant impact on not-for-profit (NFP) reporting. In 2015, the FASB issued “Not-for-Profit Entities (Topic 958) and Health Care Entities (Topic 954).” This is the biggest change to NFP reporting since 1993. The proposed changes will provide the users of the financial statements with better inf...

Not-for-profit organizations face many of the same problems as for-profit organizations. For example, all organizations must set goals and engage in long-range planning. They also must maintain certain financial records. But not-for-profit organizations have special, unique needs when it comes to financial issues that require a CPA with specialized accounting knowledge for not-for-profit groups. Your ...

Once your organization obtains exempt status under IRS 501(c)(3), it is important to be aware of the Federal and State rules and regulations that must be followed to avoid jeopardizing the organization's exempt status. Required Federal Filings 990, 990-EZ, or 990-N Annual information return for public charities.  Type depends on the organization's size.  Return is due on the 15th day of the 5th month...

Charity Navigator is a nonprofit organization that evaluates the performance of 501(c)(3) Public Charities.  Each charitable organization reviewed is assigned a star rating from 1 to 4.  Obtaining a 4-star rating from Charity Navigator can boost an organization's ability to secure donations and grants from donors. The purpose of the star rating is to show donors how efficiently a charity is using their...

Below is a list of the most common information needed to prepare a 990.  Less information is needed to prepare a 990-EZ and more information is needed for more complex organizations but this is a good starting point. Basic Information Organization's legal name, full address, and Federal Employer Identification Number (EIN) Organization's website Name and title of the person who will be ...

Since the 990 is subject to public disclosure rules and is easily available online, it is important to stress accuracy when preparing this return.  This is the face of your organization.  Many individual donors and foundations will rely on the information presented on the 990 to make their funding decisions.  Below is a list of common mistakes that are made when preparing a 990 return. Most Damaging Com...