Jen: This is the PKF Texas Entrepreneur’s Playbook. I’m Jen Lemanski, and I’m back again with Nicole Riley, an Audit Senior Manager and one of the faces of the PKF Texas Not-for-Profit team. Nicole, welcome back to The Playbook.

Nicole: Thank you. Glad to be here.

Jen: You know, we’ve been covering topics relevant to not-for-profit organizations, and one thing I noticed that you’ve talked about with clients are the fiduciary responsibilities of a board member. Can you elaborate on that a little bit?

Nicole: A lot of board members don’t realize that they do have a fiduciary duty, and it’s really important that they understand that, because they could be held financially responsible for the financial harm they do to an organization.

Jen: Wow, interesting. So, are there certain steps that they need to be mindful of?


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How well do you listen to your not-for-profit’s supporters on social media? If you don’t engage in “social listening,” your efforts may not be good enough.

This marketing communications strategy is popular with for-profit companies, but can just as easily help not-for-profits attract and retain donors, volunteers and members.


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Jen: This is the PKF Texas Entrepreneur’s Playbook. I’m Jen Lemanski, and I’m here again with Nicole Riley, an Audit Senior Manager and one of the faces of the PKF Texas Not-for-Profit team. Nicole, welcome back to The Playbook.

Nicole: Thanks. Thanks for having me.

Jen: So, we’re touching on topics important to not-for-profits. Accounting departments and development departments are two really critical components of a not-for-profit organization. How do you facilitate cooperation between the two departments?

Nicole: As you mentioned, they really are critical components of an organization, and when they work together well it can really benefit an organization.


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There was a full house at the PKF Texas office for our second not-for-profit seminar of the year, “2019 Accounting Updates and Changes for Not-for-Profits.” For this breakfast event, Audit Senior Manager and the face of PKF Texas’ not-for-profit team, Nicole Riley, CPA, CFE, discussed timely updates and changes organizations need to know.


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Have staffers complained because their expense reimbursements are taxed? An accountable plan can address the issue. Here’s how accountable plans work and how they benefit employers and employees.

A photo of a folder, a journal and a stack of paper to make not-for-profit employees aware of reimbursement plans.

Be Reasonable
Under an accountable plan, reimbursement payments to employees will be free from federal income and employment taxes and aren’t subject to withholding from workers’ paychecks. Additionally, your organization benefits because the reimbursements aren’t subject to the employer’s portion of federal employment taxes.

The IRS stipulates that all expenses covered in an accountable plan have a business connection and be “reasonable.” Additionally, employers can’t reimburse employees more than what they paid for any business expense. And employees must account to you for their expenses and, if an expense allowance was provided, return any excess allowance within a reasonable time period.


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Is your not-for-profit making the most of its email list? If you send every item to individual donors, corporate supporters, volunteers and the media — regardless of their interests or investment in your organization — you probably aren’t. Email segmentation can help you communicate with everyone more efficiently and effectively.

A man is checking his computer to optimize how he sends emails for his not-for-profit.

Keep Them Tuned In
There are many reasons to think about sending particular emails to only specific slices of your email list. For starters, too many irrelevant emails from your not-for-profit will cause some recipients to tune out or unsubscribe.

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Not-for-profit organizations don’t lose as much to occupational fraud as for-profit businesses do. According to the Association of Certified Fraud Examiners’ (ACFE’s) 2018 Report to the Nations, not-for-profits lost a median amount of $75,000 during the 21-month study period, compared with $164,000 for private for-profit companies. Yet few not-for-profit budgets can afford a $75,000 shortfall or the bad publicity associated with fraud.

A photo of grey padlocks on a red metal fence to show why Not-for-Profits need protection from fraud.

Here’s how not-for-profits open the door to occupational fraud — and how your organization can shut it.


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Not-for-profits with multiple sources of support are generally less likely to have budget shortfalls and are better able to grow and expand their services. If you’re looking for new funding sources, consider cause marketing.

overhead view of a wooden desk with a piece of paper in the center that says "marketing strategy" with books sitting to the left, titled "marketing and pricing"

Made possible via a partnership with a for-profit business, cause marketing can boost your budget, your public profile and even your volunteer base.
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According to a July 1, 2019 Notice from the Office of Federal Financial Management, the 2019 Office of Management and Budget Compliance Supplement (2019 Compliance Supplement) is now available. It will replace the 2018 and 2017 Supplements and will apply to audits of fiscal years beginning after June 30, 2018.

a pencil lying beside an open notebook with the printed words "2019 Compliance Supplement"

The 2019 Compliance Supplement includes the following:


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The IRS’s staffing shortages have been well publicized and audits of individuals have decreased in the past several years. But it’s a mistake to assume that the agency has stopped scrutinizing not-for-profits and conducting audits when it deems necessary. If your organization receives an IRS audit letter, you need to know what the process involves and how you can help resolve it as quickly as possible.

Image of a man in a blue shirt writing audit letters on pieces of paper with a pen


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