Most foundations are required to distribute at least five percent of their assets every year for charitable purposes. While most fulfill this rule with their grants, another type of contribution also satisfies it: a PRI, or program-related investment.
A business can also make such investments, which combine two opportunities in one investment: advancing the company’s social goals while seeking a financial return. Congress has designated several hybrid structures that permit foundations and businesses to partner for program-related investing: (more…)
By Helena Bouron, CPA, Senior Audit Manager
Nonprofits have a variety of unique aspects that distinguish them from for-profit entities. The nonprofits’ philanthropic and mission based approach combined, with operations that are not focused on earnings and profits, are commonly known as the biggest distinctions between these two types of entities. Every successful business, regardless of the type of entity, needs to capture and maintain meaningful financial and nonfinancial data that will serve as key performance indicators for assessment of the business performance and overall financial health of the entity. This is even more important for nonprofits as the financial information is subject to public disclosures and watchdog agencies, not to mention, donors are using financial information, that is made publicly available, to calculate ratios to assess the overall charity rating. (more…)