A recently extended tax credit could make it easier for some businesses to expand their payrolls again after the COVID-19 pandemic. The Taxpayer Certainty and Disaster Tax Relief Act, part of the 2021 appropriations bill that was signed into law on December 27, 2020, includes a five-year extension of the Work Opportunity Tax Credit (WOTC).
The WOTC is designed to encourage businesses (and non-profit entities) to hire individuals from certain targeted groups that have traditionally faced employment barriers. After many companies were forced to reduce their workforces significantly in 2020, the number of people who could qualify for one of these groups has grown, especially those who qualify as recipients of long-term unemployment benefits. (more…)
By Helena Bouron, CPA, Senior Audit Manager
ASL Nonprofit Group
When change occurs, there are always winners and losers. With the new tax reform signed into law recently, many articles have been written about the anticipated impact these changes will have on individuals and businesses. However, the impact tax reform may have on nonprofit organizations has received limited media focus. Reform may directly impact the charitable contributions of millions of taxpayers. With tax incentives to donate most likely diminished, nonprofits may struggle to find alternative ways to replace financial support. Let’s look at these major changes that could discourage charitable giving: (more…)
By Samantha Ramirez, CPA, Tax Manager
ASL Nonprofit Group
Several questions on the Federal Form 990, Return of Organization Exempt from Income Tax, ask about the existence of certain governance policies. While these questions may seem insignificant, the implications of not having these policies in place could be detrimental to the organization. This article will briefly discuss what these policies are and why they are important. (more…)
By Helena Bouron, CPA, Senior Audit Manager
ASL Nonprofit Group
Generally, summer months are busy for most nonprofit organizations, with the year-end financial close and preparation for the annual audit process. Through this process, the Organization’s finance and accounting teams are working to demonstrate to external parties their compliance with internal processes and controls and laws and regulations. To better ensure the Organization’s compliance, the Audit Committee provides assistance to the Board of Directors in the oversight of these activities.
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By Patrick Ngai, CPA, Audit Manager
ASL Nonprofit Group
The internet has been around since the 1980s. Personal computers and smartphone technology had experienced exponential advancements on an annual basis since the 1990s. There was a time when it would take a full 10 minutes of load time just to get to the homepage of Yahoo.com. Now, we basically have the collective knowledge of the entire human civilization in the palm of our hand. (more…)
By Samantha Ramirez, CPA, Tax Manager
ASL Nonprofit Group
For nonprofit organizations, no income tax may be due, but an annual return must be provided by certain exempt organizations in order to maintain tax-exempt status. Tax-exempt organizations typically file a Form 990, but depending on the amount of gross receipts or the total value of assets, the organization may have options for filing a more simplified form. Below we have outlined the requirements for each form: (more…)
By Steve Carter, CPA, Principal
ASL Nonprofit Group
Most people who know the acronym COSO (Committee of Sponsoring Organizations of the Treadway Commission) immediately think of publicly traded companies. COSO came upon the scene when Sarbanes-Oxley became a household name.
So why bring up COSO in the context of nonprofit organizations?
The recently issued Uniform Grant Guidance from the Office of Management and Budget stresses the need and importance of strong internal controls for nonprofits, and especially for those receiving federal awards and grants. Adoption of the COSO framework is not mandatory but strongly encouraged. (more…)
By Josh Cross, CPA, Principal
ASL Nonprofit Group
Recently the men and women at the Financial Accounting Standards Board (FASB) have been busy providing accountants with no shortage of nighttime reading. In the middle of putting the accounting world on its head with the release of the new Revenue Recognition (Topic 606) and Lease (Topic 842) Accounting Standards, the Not-For-Profit Advisory Committee has been hard at work re-tooling the way nonprofits will have to present their financial statements. (more…)
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By Helena Bouron, CPA, Senior Audit Manager
ASL Nonprofit Group
There are a lot of wonderful events happening during the spring in Silicon Valley. One event that has raised a lot of interest in the nonprofit communities over the past three years is “Silicon Valley Gives.” Hosted by Silicon Valley Community Foundation, this one day, 24-hour online fundraising event matches local nonprofit organizations with individual donors in a single donation platform. In addition to attracting funds contributed by individual donors to their nonprofit organization of choice participating at the event, nonprofit organizations are also eligible to receive matching grants and prize grants sponsored by Silicon Valley Community Foundation and various other sponsors on this special day. With over $3 million in available grants and prizes, is your organization poised to take a piece of the pie? (more…)
