One of the more confusing provisions of the 2017 Tax Cuts and Jobs Act is that employer-provided parking is now considered unrelated business taxable income (UBTI)—and is therefore taxable. In other words, if you provide a parking benefit for your employees, you may need to pay unrelated business income tax (UBIT) on that expense. (more…)
Nonprofit Insights
NextCOSO Provides Framework for Internal Controls
In 1992, the Committee of Sponsoring Organizations of the Treadway Commission (COSO) developed a flexible framework for designing, implementing, and evaluating internal controls. Internal controls help reduce fraud, improve accuracy and financial reporting, and maintain consistent practices across an organization. (more…)
Consider the Nature of a Transfer of Assets
In June 2018, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2018-08 to provide guidance about accounting for nonprofit organizations’ grants and contracts. This new ASU clarifies when to account for a transfer of assets as an exchange transaction versus as a contribution and how to determine whether a contribution is unconditional or conditional. (more…)
How the New Tax Law Has Affected Nonprofits
Did the Tax Cuts and Jobs Act have a significant impact on charitable giving in the U.S.? When the new law was issued, there were dire predictions that it would affect nonprofits in an extremely negative way, especially smaller, community-based organizations. And in 2018, individuals did give less to charity than in the prior year.
But what was responsible? Was the fourth-quarter decline in the stock market the primary contributor? Or was it the new tax law? (more…)
Is an Online Marketing Consultant in Your Future?
Competition for resources, donors, and volunteers is greater than ever. Social media and online marketing create excellent opportunities to connect, but they also create new forms of competition. Online, your organization is likely to be competing for clicks against another worthy cause.
Consider your current branding and marketing strategy. Is your story clear? Does it resonate with your various constituencies to create loyalty and engagement? Is it attracting those who are newly interested in your mission? (more…)
FASB Allows Nonprofit Entities to Apply the PCC Alternative on Goodwill and Intangibles
By Josh Cross, CPA, Principal
ASL Nonprofit Group
In 2014, the FASB issued ASUs 2014-02 and 2014-18, which originated as standards developed by the Private Company Council (PCC) based on feedback from privately held companies. The standards addressed the accounting for goodwill and certain identifiable intangible assets acquired in a business combination. Initially, the new PCC standards did not apply to nonprofit organizations. (more…)
The Benefits of Outsourced Accounting
Nonprofit organizations run on notoriously lean budgets. Every dollar spent on administrative needs is a dollar not spent on organizational mission.
With this frugality in mind, it’s no wonder that nonprofit organizations often “go without,” encouraging everyone to work a little harder and smarter. But this attitude can overtax staff and create inefficiencies. Moreover, nonprofit organizations often reach a point when a lack of knowledge, expertise, or time can result in poor financial decisions or outcomes. (more…)
New Reporting Standards Clarified
In 2016, the Financial Accounting Standards Board (FASB) issued new rules for nonprofit organizations, “Presentation of Financial Statements for Not-for-Profit Entities.” These new rules, effective for organizations with calendar year 2018 and fiscal year 2019 year ends, were the first significant changes for nonprofit financial statements in 25 years.
In June 2018, the FASB released a clarification to the 2016 rules regarding contributions of cash and other assets received by nonprofit organizations. With this clarification in place, nonprofit organizations have more guidance about the key changes required for the presentation of their financial statements. (more…)
Disaster Recovery Planning: Expect the Unexpected
Floods, fires, hurricanes, earthquakes, tornadoes. You never think the worst will happen to your community. But bad things happen everywhere, and smart organizations know they need to plan ahead.
What’s the state of your disaster recovery plan? There’s no time like the present to assess—or reassess—your needs. (more…)