The CPA Desk

A Thought Leader Production by PKFTexas

Tag Archives: Not-for-Profit

Leadership Tips for Not-For-Profit Mergers

If your not-for-profit is contemplating a merger or acquisition with another organization, you have a lot of work ahead of you. One of the most daunting challenges is keeping leaders focused and invested in the process. Most not-for-profits are run by both board members and internal management, and this structure can bog down decision making… Continue Reading

How Not-For-Profits Can Protect Volunteers as Assets

How much are your volunteers worth? The not-for-profit advocacy group Independent Sector estimates the value of the average American volunteer at $24.69 an hour. Volunteers who perform specialized services may be even more valuable. Whether your entire workforce is unpaid or you rely on a few volunteers to support a paid staff, you need to… Continue Reading

Tips on Compensating Not-For-Profit Board Members

Contrary to popular belief, it’s usually perfectly legal to compensate not-for-profit board members — and sometimes it might even be necessary. But is it right for your organization? Pros and Cons Board member compensation comes with several pros and cons to consider. Your organization might, for example, find it worthwhile to offer compensation to attract… Continue Reading

Changes in How Not-For-Profits Present Their Financials

Jen: This is PKF Texas The Entrepreneur’s Playbook. I’m Jen Lemanski, and I’m back again with Danielle Supkis Cheek, a director on our Entrepreneurial Advisory Services team, as well as our not-for-profit team. Danielle, welcome back to the Playbook. Danielle: Thank you again. Jen: I know there have been some pretty big changes on how… Continue Reading

Not-For-Profits: Is it Time to Reconsider a Special Event?

Not-for-profits use special events to raise large amounts in a short period of time. Most often, the donor receives a direct benefit from the event — such as dinner or participation in a gaming activity. But special events don’t always meet their fundraising goals. In fact, organizations can lose money on them. Following these steps… Continue Reading

Licensing Arrangement Considerations for Not-For-Profits

Licensing your not-for-profit’s name to a for-profit company can provide a valuable new revenue source — but it can also be risky. If you’re considering a licensing arrangement, ensure that the partnership really will generate funds and, possibly more important, a positive impression of your brand. Success . . . and Controversy When a licensing… Continue Reading

How Not-For-Profits Can Prepare for Sudden Outpouring of Support

Americans gave unprecedented sums to charity in response to the devastating hurricanes last year. Large organizations, such as the American Red Cross, were equipped to handle the huge influxes of donations. However, some smaller charities were overwhelmed. Although it may seem like an unlikely problem, not-for-profits need a plan to handle a potential outpouring of… Continue Reading

How to Navigate Your Not-For-Profit During Growth Stage

A not-for-profit’s growth stage generally starts two or three years after formation and continues until maturity at around age seven. This period comes with a sense of accomplishment and the opportunity to refine and expand, but these “adolescent” years can pose challenges as well. Board Shifts Perhaps the most common marker of a growth-stage not-for-profit… Continue Reading

Let’s Revisit Your Not-For-Profit’s Social Media Policy

Perhaps you wrote a social media policy several years ago when your not-for-profit set up a Facebook page. Since then, not only has your not-for-profit likely changed, but new social media platforms have emerged. At the very least, the sites you use have probably revised their terms of service. That’s why it’s time to revisit… Continue Reading

It’s Time to Revisit the Donor Bill of Rights

The Donor Bill of Rights was designed about 25 years ago as a blueprint of best practices for not-for-profits. Some critics have since asserted that the rights are out of date or not comprehensive enough. However, revisiting the list’s basic principles can help you build solid relationships with donors — and even boost fundraising. Here… Continue Reading

How Private Foundations Can Avoid Costly IRS Attention

IRS rules governing private foundations are complex and include many exceptions, which is why your foundation needs to write and follow a detailed conflict-of-interest policy. Taking this proactive step can help you avoid potentially costly public and IRS attention. Casting a Wide Net Conflict-of-interest policies are critical for all not-for-profits. But foundations are subject to… Continue Reading

Thinking Like an Auditor for Your Not-For-Profit Revenue

Auditors examining a not-for-profit’s financial statements spend considerable time on the revenue figures. They look at the accounting methods used to record revenues and perform a detailed income analysis. You can use the same techniques to increase your understanding of your organization’s revenue profile. In particular, consider: Individual Contributions Compare the donation dollars raised to… Continue Reading

ASU No. 2018-08 Clarifies Guidance for Not-For-Profit Entities: Contributions Received and Contributions Made

The Financial Accounting Standards Board (FASB) has issued Accounting Standards Update (ASU) No. 2018-08, Not-for-Profit Entities (Topic 958): Clarifying the Scope and the Accounting Guidance for Contributions Received and Contributions Made. ASU No. 2018-08 provides clarifying and amended guidance concerning: the determination of whether a transaction should be accounted for as an exchange or as… Continue Reading

How Data Analytics Can Help Solve Your Not-For-Profit’s Challenges

If your not-for-profit wants to improve its budgeting, forecasting, fundraising or other functions but is having a hard time identifying both problems and solutions, data analytics can help. This form of business intelligence is already considered invaluable in the for-profit world. But it can be just as useful to not-for-profits. Informed Decision Making Data analytics… Continue Reading

Is Your Not-For-Profit Tax-Compliant with Fundraising Auctions?

Auctions have long been lucrative fundraising events for not-for-profits, but these events come with tax compliance responsibilities. Acknowledging Item Donations If you auction off merchandise or services donated to your charity, you should provide written acknowledgments to the donors of the auctioned items valued at $250 or more. You won’t incur a penalty for failing… Continue Reading

Should Your Not-For-Profit Have Virtual Board Meetings?

Your not-for-profit’s board of directors meetings don’t always need to be performed up-close and personal in the same room. Many organizations hold virtual board meetings via phone and with Web-based applications. Participation May Improve It can be difficult to secure full board meeting attendance, but going virtual might allow members to attend meetings they otherwise… Continue Reading

Metrics to Make the Most of Not-For-Profit Fundraising

The amount of money your not-for-profit raises in fundraising campaigns is meaningful, but so is how efficiently you’re able to raise it. Such costs can be measured using two metrics: Cost ratio and return on investment (ROI). Let’s take a look. Find a Formula These two metrics can be used to evaluate both fundraising activities… Continue Reading

How to Reinforce Ethics in Your Not-For-Profit

Whether it’s in the business, government or not-for-profit sector, ethics seem to be on everyone’s minds these days. To ensure your supporters and community understand your not-for-profit organization’s values and the policies that uphold them, a formal code of ethics is essential. Here’s how to create one. 1. Identify Rules of Conduct You probably already… Continue Reading

Is Your Not-For-Profit Properly Reporting Donations?

Your not-for-profit probably already ensures that donors receive a receipt with information about claiming a charitable contribution deduction on their tax return. But your obligations may go further than that. For noncash donations, you might have responsibilities related to certain tax forms. Form 8283 for Donors When filing their tax returns, donors must attach Section… Continue Reading

How the Greater Houston Community Foundation Makes Charity Dollars Productive

Russ:  This is PKF Texas Entrepreneur’s Playbook.  I’m Russ Capper, this week’s guest host, and I’m coming to you from the Gulf Coast Regional Family Forum, and my guest is Renée Wizig-Barrios, Senior Vice President and Chief Philanthropy Officer of the Greater Houston Community Foundation.  Renée, welcome to the show. Renée:  Thank you, Russ. Good… Continue Reading

Does Your Not-For-Profit Comply with Procurement Procedures?

The relatively new federal procurement standards significantly alter the way not-for-profit organizations receiving federal funding handle purchasing. And while your organization may have changed its written policies to comply with the revised standards, it may be easier to follow the rules on paper than in practice. Summing Up the Standards The standards, “Uniform Administrative Requirements,… Continue Reading

Determine if Your Not-For-Profit Income is Sponsorship or Advertising

Many not-for-profit organizations supplement their usual income-producing activities with sponsorships or advertising programs. Although you’re allowed to receive such payments, they’re subject to unrelated business income tax (UBIT) unless the activities are substantially related to your organization’s tax-exempt purpose or qualify for another exemption. So it’s important to understand the possible tax implications of income… Continue Reading