Common Errors with Net Assets
When auditing an organization, what we often find is that clients are not tracking their restricted net assets. Or if they are tracking it, it is not correct. Some common errors we find include: Board...
View ArticleHow to Report a Name Change to the IRS
If your nonprofit has changed its name, the name change needs to be reported to the IRS. This can be done on your next Form 990. Here are the requirements for reporting this properly: File your next...
View ArticleConflict of Interest Policy: Financial Statements & Form 990
On page 6 of the Form 990, the IRS asks the nonprofit organization if they have a written conflict of interest policy, if annual disclosure is required, and if the organization regularly monitors and...
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IRS Filing Calendar for Raffles
When it comes to IRS filing requirements relating to charities holding raffles, there are many steps to remember and they can be difficult to keep straight! Getting stuck trying to meet the filing...
View ArticleCancer Charity Fraud Part I
Last Saturday while browsing the internet at a coffee shop, I came across any donor’s worst nightmare. According to the Federal Trade Commission (FTC), over the past eight years The Cancer Fund of...
View ArticleIs It Time for You to Implement a Social Media Policy?
Social media has become the top marketing tool in businesses today, which of course includes the not-for-profit community. By now, you probably have a team member that is responsible for the...
View ArticleUse Your 990 as a Marketing Tool
Once April 15th comes and goes, most Americans no longer are thinking about tax returns. If you’re involved in a not-for-profit, however, you may still be working on getting your informative return...
View ArticleReleasing or Modifying Permanently Restricted Contributions – Is this Allowable?
Recently I was talking to a client of mine about some of their permanently restricted net assets when he blurted out, “I wish I could just get rid of these little, old amounts that have been around...
View ArticleComplimentary Not-For-Profit CPE Offered by Henry & Horne, LLP
Did you know Henry & Horne, LLP offers complimentary continuing professional education (CPE) credits to our not-for-profit clients and friends!? To top it off, you also get a free lunch or...
View ArticleDeveloping Diverse Funding Sources
To acquire a diverse set of funding sources, a nonprofit organization first has to be sure that the community has a positive impression of the organization and mission. Recently, I came across a...
View ArticleAnnual Giving USA Report Released
The Giving USA Foundation (a public service initiative of The Giving Institute) has released their annual Giving USA Report on Philanthropy in collaboration with The Indiana University Lilly Family...
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Why Your Nonprofit Needs a Mobile Site
It should be no surprise that the use of cell phones has increased. While it has been the source of a lot of talk over the years, it appears we’re finally at a tipping point. As shown below, Emarketer...
View ArticleInternal Control Policies Reported on the 990
Lately I’ve received several questions about the policies and procedures listed on page 6 Part VI Section B, three of which are a written conflict of interest policy, whistle blower policy, and a...
View ArticleDo You Have a Donor Privacy Policy?
As accumulating personal information such as names, addresses, and credit card numbers from donors and special event attendees becomes both easier and more useful due to the implementation of donor...
View ArticleDonated Services
Volunteer time (or donated services) is only recorded as revenue and expense in the financial statements if the services create or add value to a non-financial asset (such as construction services...
View ArticleEthical Fundraising Practices
Recently, I overheard two individuals discussing ethical fundraising practices for their small nonprofit organization over lunch. As an auditor specializing in non-profit, you can imagine how quickly...
View ArticleCharity Navigator Launches CN 2.1
On June 1, Charity Navigator announced the launch of CN 2.1, an enhancement of their previous charity rating system CN 2.0. This includes several changes to the seven “Financial Health” rating metrics...
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Heads Up on Form 1099-MISC
Please note the new filing date for Form 1099-MISC, per the IRS: Public Law 114-113, Division Q, Section 201, requires Form 1099-MISC to be filed on or before January 31, 2017 (compared to February...
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