Not-for-Profit

The FASB recently released its first update to the financial reporting rules for nonprofits since 1993. The new Accounting Standards Update (ASU) No. 2016-14, Not-for-Profit Entities (Topic 958): Presentation of Financial Statements of Not-for-Profit Entities, will affect the financial statements of most nonprofits when it takes effect. This article explains the standard’s new net asset classes, how liquidity and available resources reporting has changed, and the new requirements for reporting expenses and investment return. How to present operating cash flows is also briefly discussed. A sidebar outlines the FASB’s goals for the new standard.

The 2016 M+R Benchmarks Study reveals how rapidly the nonprofit universe is changing in the face of online fundraising, marketing, and advocacy efforts. Currently in its tenth year, the study’s goal is to look at how nonprofits and their supporters are behaving today to help them prepare for changes in the future.

Recently established social welfare organizations must now notify the IRS that they are operating as tax-exempt organizations under Code Section 501(c)(4) of the tax law. The new
requirement was included as a provision in the Protecting Americans from Tax Hikes (PATH) Act of 2015.

More and more nonprofits are joining forces to better serve their client populations and cut costs. But such relationships can come with complicated financial reporting obligations. Your organization’s reporting requirements will depend on the type of relationship you enter.

Nonprofit organizations welcome gifts of cash. But what if a donor wants to give a noncash gift, such as real estate, appreciated stock, or a work of art? Some gifts may not be appropriate...

The U.S. Department of Labor (DOL) has issued a final rule updating white collar overtime regulations, increasing the exemption thresholds and extending overtime pay protections to over four million workers within the first year. How will the new rules affect not-for-profits?

Attorney General Lisa Madigan warns Illinois charities of elaborate donation scam. Madigan’s office has been notified by several Illinois charities that were suspicious of a potential scam after engaging in lengthy and believable email conversations with a supposed donor. Luckily, the charities did not fall victim to the scam, but passed along information in an effort to warn others.

The following are some recent tax-related developments of interest to nonprofit organizations. Donee reporting regulations. The IRS has withdrawn proposed regulations regarding the...

The Protecting Americans from Tax Hikes (PATH) Act of 2015, signed into law late last year, restored and made permanent several federal income-tax provisions designed to encourage charitable giving.