Current financial pressures mean that your not-for-profit probably can’t afford to pass up offers of support. Yet you need to be careful about blindly accepting grants. Smaller not-for-profits that don’t have formal grant evaluation processes are at risk of accepting grants with unmanageable burdens and costs. But large organizations also need to be careful because they have significantly more grant opportunities — including for grants that are outside their current expertise and experience.

graphic of a manila folder with the word "grants" and a dollar bill; image used for blog post about not-for-profits accepting grants

Here’s how accepting the wrong grant may backfire in costly and time-consuming ways.

Continue Reading Considerations When Accepting New Grants for Your NFP

If your business was fortunate enough to get a Paycheck Protection Program (PPP) loan taken out in connection with the COVID-19 crisis, you should be aware of the potential tax implications.

two sticky notes on a window saying "Sorry we are closed, COVID-19;" image used for blog post about tax consequences of PPP loans

The Basics
The Coronavirus Aid, Relief and Economic Security (CARES) Act, which was enacted on March 27, 2020, is designed to provide financial assistance to Americans suffering during the COVID-19 pandemic. The CARES Act authorized up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses through the PPP. In April, Congress authorized additional PPP funding and it’s possible more relief could be part of another stimulus law.

Continue Reading PPP Loans Can Have Tax Consequences

TXCPA Houston Energy Conference 2020 BrochureDue to the continuing COVID-19 pandemic, this year’s TXCPA Houston Energy Conference will be virtual on Wednesday, August 26, 2020. PKF Texas Audit Director and Energy Practice Leader, Brian Baumler, is the event’s Chairman for the seventh year.

Now in its 18th year, the 2020 conference will feature valuable insights from top executives and professionals in the accounting and energy industry in an online learning environment. This year, the upstream keynote speaker is Jennifer Kirk, SVP Integration and Value Capture, Occidental Petroleum Corporation.

Additionally, attendees of the conference can earn up to 9 CPE credits, hearing from thought leaders who will discuss topics, including:

  • Energy Economic Update and Outlook
  • Tax Trends and Outlook
  • Accounting and SEC Update
  • Environmental Social Governance
  • Mergers and Acquisitions, and Capital Markets Insights and Trends
  • Artificial Intelligence and Data Analytics

What’s on the agenda for the conference? Click here or on the cover above to see the conference’s brochure with all the topics and speakers.

For more information and to register, visit the TXCPA Houston website: www.houstoncpa.org.

As PKF Texas continues its work-from-home strategy during the COVID-19 pandemic, the firm’s not-for-profit team hosted its first Zoom webinar titled “Adapting to New Daily Challenges Facing Not-for-Profits.”

promotional image of Nicole Riley, Matt Kuhlman and Jennifer Yancey for a Zoom webinar about new daily challenges facing not-for-profits

PKF Texas Audit Senior Manager, Nicole Riley, CPA, CFE, moderated a panel with Matt Kuhlman, Vice President and Chief Financial Officer, Cenikor Foundation; and Jennifer Yancey, Chief Development Officer, Houston Area Women’s Center. Some of the topics they shared insight on included:

  • Finding and retaining staff
  • Board member retention
  • Keeping current on IT and technology
  • Fundraising
  • Collaboration with other entities
  • And more

Prior to COVID-19, not-for-profit organizations were already facing challenges, but the pandemic has increased those challenges. In their discussion, Kuhlman and Yancey shared their respective organizations’ experiences and working solutions for each topic – pre-COVID-19, during COVID-19 and looking forward to future operations. For example, everyone agreed there needs to be an emphasis on culture within an organization, speaking to retention efforts. Especially in a pandemic requiring remote workdays, communication from organization leadership is imperative, as well as regular check-ins and reinforced work-life balance and self-care.

To watch* the full webinar, visit bit.ly/PKFTexas080620Webinar.

For the latest updates related to COVID-19, visit: www.PKFTexas.com/COVID-19.

For more information about how the faces of PKF Texas serve not-for-profits, reach out to our team members at www.PKFTexas.com/NotForProfit.

*Note: viewing the recorded webinar does not make you eligible for CPE credit.

The Small Business Administration (SBA) and Department of Treasury released an updated Paycheck Protection Program (PPP) Loan Forgiveness FAQ with detailed instructions on Tuesday, August 4, 2020 as the COVID-19 pandemic continues.

hands typing on a laptop; image used for a COVID-19 update about the Paycheck Protection Program (PPP) Loan Forgiveness Application

The FAQs cover:

  • General loan forgiveness
  • Payroll costs
  • Nonpayroll costs
  • Reductions

Future legislation may impact this and other PPP-related guidance. We will continue to monitor possible updates, promptly advising you should the current documents be revised or amended.

If you have questions about PPP-related matters, please connect with your PKF Texas Entrepreneurial Advisory Services team members.

Byron Hebert, CPA, CTP
Practice Leader/Director, EAS
BHebert@PKFTexas.com
(713) 860-1455

Sam Razmandi, CPA
Director, EAS
SRazmandi@PKFTexas.com
(713) 860-5442

Matt Goldston, CPA, CVA, CM&AA
Director, EAS
MGoldston@PKFTexas.com
(713) 860-5439

Danielle Supkis Cheek, CPA, CFE, CVA
Director, EAS
DCheek@PKFTexas.com
(713) 860-5422

Additionally, we are keeping PKFTexas.com/COVID-19 up-to-date with information and resources to assist you as we all navigate these quickly-changing times.

According to the Association of Certified Fraud Examiners, establishing and enforcing a code of ethical conduct is associated with 50% lower fraud losses.

a stack of white binders filled with paper; image used for blog post about not-for-profits having a code of ethical conduct

Codes of conduct aren’t just about fraud prevention, though. Holding staffers and board members to an ethical code helps your not-for-profit communicate its values to the public and reassures supporters.

Continue Reading Does Your Not-for-Profit Have a Code of Ethical Conduct?

Not-for-profits sometimes team up with other entities to boost efficiency, save money and better serve both organizations’ constituencies. This can be a smart move — so long as your accounting staff knows how to report the activities of the two organizations. How you handle financial reporting depends on the nature of your new relationship.

an African American man writes on a dry eraser board with an Asian woman; image used for blog post about not-for-profits teaming up for financial reporting

Continue Reading Teaming Up with Another NFP for Financial Reporting

COVID-19 is changing the landscape for many schools this fall. But many children and young adults are going back, even if it’s just for online learning, and some parents will be facing tuition bills. If your child has been awarded a scholarship, that’s cause for celebration! But be aware that there may be tax implications.

pink ceramic piggy bank; image used for blog post about determining if a scholarship is tax-free or taxable

Scholarships (and fellowships) are generally tax-free for students at elementary, middle and high schools, as well as those attending college, graduate school or accredited vocational schools. It doesn’t matter if the scholarship makes a direct payment to the individual or reduces tuition.

Continue Reading Your Child’s Scholarship: Is it Tax-free or Taxable?

The Federal Reserve recently announced that not-for-profit organizations now may apply for loans under the $600 billion Main Street Lending Program. Previously open only to for-profit businesses with more than 100 employees, the program offers low-interest loans with relatively relaxed repayment terms.

man holding a pen to paper about to sign a contract; image used for a blog post Main Street Lending Program during COVID-19 pandemic

If your organization needs funding to keep operating during this difficult period, a Main Street loan may be an option.

Continue Reading Your NFP Can Now Apply to the Main Street Lending Program