Blog & Newsroom

Shuttered Venue Operators Grants and Restaurant Revitalization Fund Grants can pose accounting challenges.

On Aug. 10, the AICPA released a Technical Question and Answer (TQA) surrounding how a recipient should account for these grants. TQA 5270.01, Recipient Accounting for Shuttered Venue Operators Grants (SVOG) and Restaurant Revitalization Fund (RRF) Grants Received Under the Small Business Administration (SBA) COVID-19 Relief Program provides nonauthoritative guidance about how to account for SVOG and RRF grants. It applies to not-for-profit organizations who were only eligible for SVOG and private businesses entities who were eligible for both grants.

Selecting a firm to conduct your not-for-profit’s audit services can feel like a daunting task. There are hundreds of firms online and most (if not all) claim to perform not-for-profit audit services.. How can you know which audit firm is the right for your Organization?

Selecting the right audit firm is like creating a long-term relationship with a partner that is dedicated to helping your organization fulfill its mission. Selecting the wrong firm can feel like trying to swim with a 500 lb. weight strapped to your back.So how can you be sure you are selecting the best fit for your needs?

Estimates show that over 5% of all revenue is lost to fraud and theft each year. The numbers are staggering - odds are if you have not experienced it, you will.

One of the best ways to prevent fraud and theft is to implement a system of internal controls (though no system of internal control can prevent all fraud and theft). We have developed a comprehensive checklist of internal controls you should be using, but here are our top 5:

Q: As a sitting board member of an organization, can I be personally liable for the actions of the entity? 

In a word, yes.

As a member of the board of directors, you assume certain fiduciary responsibilities.

Audits are important. Investors, lenders, government agencies, potential buyers and - in the case of not-for-profit organizations, your donors - rely on audit reports to assess your organization. Audits can be long, arduous, headache-inducing ordeals…but they don’t have to be. Proper preparation can go a long way towards simplifying the audit process.

If you are a professional fundraiser or volunteer for an organization, this article is a must-read to help you better understand the difference between deferred and temporarily restricted revenue.

Many of our not-for-profit clients frequently ask me to explain when funding is considered deferred revenue and when is it considered temporarily restricted revenue.  This area can be confusing, as the reporting and accounting implications can vary greatly.

The giving cycle. Funding cuts. Grant applications. Today, many professionals responsible for the fiscal health of a not-for-profit are consumed with a variety of concerns that impact the bottom line. Adding to that, the recent Financial Accounting Standards Board (FASB) proposed changes are certainly concerns that cannot be overlooked.

According to the National Center for Charitable Statistics (NCCS), more than 1.5 million nonprofit organizations are registered in the U.S. This number includes public charities, private foundations, and other types of nonprofit organizations, including chambers of commerce, fraternal organizations and civic leagues. The concern?  The FASB changes will affect nearly all not-for-profit entities who issue financial statements.

I recently had a discussion with a new client about their Executive Director’s worker status.  I was surprised to learn that the organization wanted to classify him as an independent contractor instead of an employee.  Because a position such as the Executive Director would fall into the IRS categories for employees instead of independent contractor,

I explained to them that there would be potential fines and penalties assessed for this classification.  They could not believe they would be charged payroll taxes on his salary, as well as additional penalties.  Because re-classifying him would save the organization thousands of dollars in potential taxes, fines, and penalties, I wanted to offer some guidance so that other organizations can avoid these worker classification pitfalls as well.

The IRS is always coming up with creative ways to generate revenue.  One of their favorite methods is to look at organizations to see if they are improperly classifying workers as employees.  To make sure your workers are all properly classified (and more importantly to avoid the tax consequences of misclassification), it is important to know the difference between an employee and an independent contractor.

For engaged couples, there seems to be a never-ending list of things to plan ahead of the “big day,” including invitations, bridal party, the venue, wedding colors, first-dance song, and most romantically, the IRS.