The CPA Desk

A Thought Leader Production by PKFTexas

Tag Archives: Not-for-Profit

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 Some critics have since asserted that the rights are out of date or not comprehensive enough.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

Tips for Recruiting Volunteers for Your Not-For-Profit

Most charitable not-for-profits have a never-ending need for volunteers. But finding new ones can be time-consuming — and volunteer searches aren’t always successful. Here are recruitment ideas that can help your not-for-profit. Look Nearby Is your not-for-profit familiar to businesses, residents and schools in the surrounding community? People often are drawn to volunteer because they… Continue Reading

Guidelines on Accounting Pledges to Your Not-For-Profit

When a donor promises to make a contribution at a later date, your not-for-profit likely welcomes it. But such pledges can come with complicated accounting issues. Conditional vs. Unconditional Let’s say a donor makes a pledge to your not-for-profit in April 2018 to contribute $10,000 in January 2019. You generally will create a pledge receivable… Continue Reading

Will Having an Advisory Board Benefit Your Not-For-Profit?

Your not-for-profit is likely governed by a core group of board members. But the addition of an informal advisory board can bring complementary — and valuable — skills and resources to this group. Review representation Look at your general board members’ demographics and collective profile. Does it lack representation from certain groups — particularly relative… Continue Reading

Tips for Fostering Beneficial PR for Your Nonprofit

For most nonprofit organizations, there’s no such thing as too much good publicity. If you’re struggling to get enough attention from media outlets, follow these tips: 1. Seize the day. Raise your nonprofit’s profile by putting out news releases regularly rather than just occasionally. A variety of events, such as the addition of a key… Continue Reading

Spring cleaning: Review your nonprofit’s programs — and possibly replace some

Has your not-for-profit’s program lineup remained unchanged for at least a couple of years? If so, consider using the tradition of spring cleaning to review your offerings. Some of your programs might be due for replacement. Clear out the closets Many nonprofits keep programs long after they’ve stopped working. Instead of relying on old assumptions… Continue Reading

It’s time for nonprofits to embrace the cloud

Cloud computing promises lower technology costs and greater efficiency and productivity. Yet many nonprofits have yet to move to the cloud, possibly because their staffs are smaller and their IT expertise is limited. Fortunately, cloud computing is a simple concept that’s easy to adopt. Remote control Cloud computing, also known as “software as a service,”… Continue Reading

Boosting the matching gifts your nonprofit receives

Corporate matching can double the value of donors’ gifts — a bonus no not-for-profit organization can afford to pass up. Are you doing everything you can to educate your financial supporters and their employers about matching gifts? Encourage donors and employers Most matching programs are managed by HR departments, which provide employees with matching gift… Continue Reading