Tax and Accounting Desk

It takes more than dedication and enthusiasm for your not-for-profit’s cause and programs to make a good board member. The most critical duty for all board members is being a fiduciary.

a group of people sit in a conference room around a wooden desk with someone leading discussion at the table head writing on a whiteboard; image used for blog post about in-person not-for-profit board retreats

This means, among other things, that they can be trusted to always act in their not-for-profit’s best interests, avoid unnecessary risk, make decisions thoughtfully and execute them efficiently.


Continue Reading The Fiduciary Duties of Not-for-Profit Board Members

If you’re a business owner hiring your children this summer, you can obtain tax breaks and other nontax benefits.

four arms in business clothes forming a lattice with gripping each other's arms; image used for blog post for hiring children tax benefits

The kids can gain on-the-job experience, spend time with you, save for college and learn how to manage money. And you may be able to:

  • Shift your high-taxed income into tax-free or low-taxed income,
  • Realize payroll tax savings (depending on the child’s age and how your business is organized), and
  • Enable retirement plan contributions for the children.


Continue Reading The Tax and Nontax Benefits of Hiring Your Children

Many Americans remain unemployed due to the COVID-19 pandemic — at least 9.8 million at the end of April, according to the U.S. Bureau of Labor Statistics. But that’s expected to change quickly as employers ramp up hiring activities. If your not-for-profit will soon need new staffers, you might want to start putting out feelers now.

two women sitting across each other at a table talking; image used for blog post about hiring new not-for-profit staffers

Obviously, the decision to hire is a difficult one considering the economic uncertainty that may remain. But you also don’t want to miss out on the best talent. Here are some issues to consider.


Continue Reading Considerations for Hiring New Not-for-Profit Staffers

As the COVID-19 pandemic finally seems to be fading in the United States, your not-for-profit organization may be making plans for its post-pandemic future. Is a merger with another not-for-profit part of these plans?

two men in suits shake hands; image used for blog post about not-for-profit merger after pandemic

A merger can provide your organization with greater stability and resilience so that you can survive any new challenges that comes your way. But a merger isn’t always the best solution if, for example, you’re looking for a financial rescue. Here’s a rundown of good — and bad — reasons to join forces.


Continue Reading Is Your Not-for-Profit Thinking About a Merger?

What is good not-for-profit governance? How can organizations spot red flags of bad governance and avoid fraud? PKF Texas Directors, Nicole Riley, CPA, CFE, and Emily Smikal, CPA, shared their insight in our Zoom webinar on May 12, 2021, “Governance Gone Bad: Lessons Learned to Help Your Not-for-Profit.”

promotional graphic for Zoom webinar, Governance Gone Bad: Lessons Learned to Help Your Not-for-Profit, featuring PKF Texas Nicole Riley and Emily Smikal


Continue Reading Recap: “Governance Gone Bad” Not-for-Profit Webinar

If your not-for-profit organization accepts contributions of nonfinancial assets, such as land, services and supplies, you should know about Financial Accounting Standards Board (FASB) rules approved last year. Accounting Standards Update (ASU), Not-for-Profit Entities (Topic 958): Presentation and Disclosures by Not-for-Profit Entities for Contributed Nonfinancial Assets is intended to increase transparency around gifts in kind.

black box gifts with golden ribbon bows; image used for blog post about not-for-profit rules about gifts in kind


Continue Reading The New Accounting Rules for Gifts in Kind

If your not-for-profit periodically prepares internal financial statements for your board, you may have noticed that your auditors propose financial adjustments to these interim statements at year end. Why do auditors do this? Generally, it reflects differences due to cash basis vs. accrual basis financial statements. But you can help minimize the need for such financial adjustments.

man in a suit looking at graphs and stats on a tablet; image used for blog post about not-for-profits minimizing financial adjustments

Here’s how.


Continue Reading How to Minimize Needing Year-End Financial Adjustments