Tax and Accounting Desk

Not-for-profits increasingly are adopting a corporate world tool: financial dashboards. A dashboard is a summary of an organization’s progress toward a specific goal over time — or a snapshot of its current situation.

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Dashboards are designed to help boards and other constituents visualize important metrics, or key performance indicators (KPIs). But to facilitate informed, timely decisions, it’s critical to select the right KPIs.


Continue Reading How Financial Dashboards Help Your NFP’s Financial Success

While you probably don’t have any problems paying your tax bills, you may wonder: What happens in the event you (or someone you know) can’t pay taxes on time?

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Most importantly, don’t let the inability to pay your tax liability in full keep you from filing a tax return properly and on time. In addition, taking certain steps can keep the IRS from instituting punitive collection processes.

Here’s a look at the options.


Continue Reading Can’t Pay Individual Taxes? Here’s What to Know

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.

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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.

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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

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

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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.

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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.

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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?

If you’re planning your estate, or you’ve recently inherited assets, you may be unsure of the “cost” (or “basis”) for tax purposes. Therefore, It’s crucial for you to understand the fair market value basis rules so that you don’t pay more tax than you’re legally required to.

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Continue Reading Understand Fair Market Value Rules for Your Estate and Property