Public companies have been required to have an audit committee for about a decade now (due to the Sarbanes-Oxley Act of 2002), and many nonprofits have started their own such committees during that time. The result? Some organizations have learned the hard way that good intentions aren’t enough to ensure an effective audit committee — both the nonprofit and committee members must fully understand the committee’s role and responsibilities.
Not All Funds Are Created Equal
Nonprofit organizations typically depend on a variety of funding to keep them alive and well. They need funds to pay their bills, pay their staffs and pay for the costs of running their programs. But savvy nonprofits know that not all that’s green has equal value and flexibility. Types of funding vary greatly in how they can — or cannot — be used.
Tips for Preventing Fraud in Your Organization
If your nonprofit became a victim of fraud, it wouldn’t just hurt your organization’s bottom line — the infraction also could do devastating damage to your reputation. By implementing some simple controls, though, your organization can help protect itself from these risks.
Keeping an eye on UBI: Understand Unrelated Business Income and How to Avoid Excess Amounts
Like other nonprofits, your organization probably has searched for new sources of revenue during the recession and economic slump. Hopefully, though, you haven’t run into problems accumulating too much unrelated business income (UBI). That kind of income can subject your nonprofit to taxes — and even threaten your tax-exempt status. Here’s what to watch out for going forward on the UBI front.
Want Happy Donors? Be Careful with Acknowledgement Letters
Many of your donors are now in the process of preparing their 2014 tax returns. You may also have just completed or are still preparing acknowledgement letters thanking them for their 2014 contributions. We know you are aware of the need for such letters. You may not, however, be aware of the dire consequences that may be in store for your donors if the letters aren’t received timely or are not written in accordance with stringent IRS guidelines
Is Your Not-for-Profit Complying with the Affordable Care Act?
Like many businesses in the for-profit sector, nonprofit organizations need to ensure they are continuing to comply with the Affordable Care Act (ACA). Organizations that fail to comply may face stiff penalties.
Important Changes to OMB’s Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards
In December 2014, the Obama administration finalized the Office of Management and Budget’s (OMB’s) Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, commonly referred to as the Uniform Guidance. The rules are effective for new awards made on or after December 26, 2014. The Uniform Guidance has been described as historic reform that will make long-term changes to the federal government’s financial assistance programs. There are several key policy reforms
Top Ten Tax Developments for 2014 Impacting 2015
2014 was a notable year for tax developments on a number of fronts. Selecting the "top ten" tax developments for 2014 necessarily requires judgment calls based upon uniqueness, taxpayers...
Year-End Tax Legislation Renews Extenders, Cuts IRS Funding and More
Eleventh-hour votes in Congress in December renewed a package of tax extenders for 2014, created new savings accounts for individuals with disabilities, cut the IRS’ budget, and...