Changes Expected in Early 2018 for Applications of Tax-Exempt Status

Entities can be set up as “for-profit” or “not-for-profit” (“nonprofit”) organizations. As their name suggests, the former focuses on maximizing profits while the latter does not. Nonprofit status is a state law concept determined by each state. Being a nonprofit organization in its state does not automatically qualify the organization to be federally tax-exempt, however. [...]

February 13th, 2018|BUSINESS TAX, NOT-FOR-PROFITS|

View From The Top – Nonprofit Board Review of Form 990

While it is true that the annual Form 990 each nonprofit organization must file with the IRS is filled with numbers, it also contains much more. The Form 990 provides insight into the organization and how it functions and—unlike tax reports of other entities—is a document that must be made available to the general public. [...]


The Final Dance — Closing a Nonprofit Organization

Dissolving an organization can be difficult and emotional. Whether it is for involuntary or voluntary reasons, there are certain key items and considerations that should occur in that final dance before the music stops and the organization calls it a night. Follow the 5-Step Dance Combination for Dissolving a Nonprofit There are generally five key [...]

September 29th, 2017|NOT-FOR-PROFITS|

Tax Planning Reasons to Potentially Run Toward Establishing a Private Foundation

Have you ever started training for a race (maybe a 5K, 10K or half marathon) but not yet known exactly which date and location it would be? A private foundation offers some potentially similar benefits in many ways. Basically, a private foundation is an excellent vehicle for a family to get an immediate tax deduction [...]

May 26th, 2017|NOT-FOR-PROFITS|

6 Considerations Before Diving Into Starting a Charitable Organization

Forming a not-for-profit organization is typically a wonderful idea based on a worthy charitable purpose, but it’s also subject to a litany of administrative work and documentation requirements. In order to ease that burden, consider these six items before taking the plunge. Draft a mission statement. This critical first step determines the organization’s purpose. Know [...]

May 26th, 2017|NOT-FOR-PROFITS|

3 Minutes on the 3 Main Changes of the New Nonprofit Reporting Standard

The Financial Accounting Standards Board’s (FASB’s) new standard for nonprofit financial reporting will dramatically change how not-for-profit organizations present their financial statements. The new regulations are designed to help financial statement users more clearly understand how nonprofits manage their funds. Watch as Alyssa Hill explains three key changes the FASB’s standard will introduce, [...]


Dispatching Guidance for Properly Recording Contribution Revenue

Navigating nonprofit accounting can be confusing, especially in relation to recording contribution revenue. Determining when contribution revenue is unrestricted, temporarily restricted, or permanently restricted may involve many twists and turns. However, it is important to note that – much like air traffic controllers – the donor directs an organization regarding how to categorize his or [...]


Defying the Gravity of Going Concern Issues for Nonprofits

The Financial Accounting Standards Board (FASB) requires management of both nonprofit and for-profit entities to assess whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the organization's ability to continue as a going concern for at least one year after the date that the financial statements are issued. Some [...]

March 2nd, 2017|NOT-FOR-PROFITS|

How Nonprofits Cluster Functional Expenses on Financial Statements

Like grapes, a nonprofit entity’s expenses are “clustered” on the organization’s financial statement. Nonprofits are required to report financial information using functional expense classification, which is a method of grouping expenses according to their purposes (e.g., program services and supporting services). By contrast, natural expense classification is based on the type of expense – such [...]


Checking Up on the Charity Navigator Rating System

Many pet owners take their animals to the veterinarian to ensure that their companions are healthy. Likewise, many donors visit Charity Navigator, a popular charity-rating website, to check on the well-being of approximately 8,000 nonprofit entities across the country. Many organizations find the website’s rating system to be critical for obtaining contributions. Patti Hanks, executive [...]

December 2nd, 2016|NOT-FOR-PROFITS|

Emerging Victorious with Nonprofit Lease Accounting Implementation

American history is full of momentous achievements. Orville Wright piloted the first powered flight in 1903. In 1969, American spacecraft first landed on the moon. In 2016, the Financial Accounting Standards Board (FASB) had its own triumph by finalizing its updated lease accounting standard. The new rules require all entities, including nonprofit organizations, to record [...]

November 23rd, 2016|NOT-FOR-PROFITS|

Diving into the Impact of Revenue Recognition on Nonprofits

Submarines adapt to their environments in a variety of ways. For example, they use sonar (an acronym for SOund Navigation And Ranging) to detect or communicate with other objects in the water. Similarly, organizations across many industries are changing their processes to prepare for the Financial Accounting Standard Board’s (FASB’s) new revenue recognition standard. Amidst [...]


The Rubber Stamp Trap: Do Your Nonprofit Board Members Understand Their Form 990 Responsibilities?

“Has the organization provided a complete copy of this Form 990 to all members of its governing body before filing the form?” The IRS poses this important question very directly on your organization’s Form 990. Here, the IRS is essentially asking if your board is aware of its Form 990 responsibilities. In other words, the [...]

November 4th, 2016|NOT-FOR-PROFITS|

How to Give Donors the Top-Secret Privacy They Expect

In this age of heightened transparency and Form 990 disclosure rules, many nonprofit executives and board members might see their organizations as public entities. As a result, they might not be as protective of donor privacy as they could (or maybe should) be. However, most donors rightfully expect their personal information to remain confidential. As [...]

October 19th, 2016|NOT-FOR-PROFITS|

Roadmap to Avoiding the Top 5 Nonprofit Governance Mistakes

In a world of navigation systems and smart phones, getting from point A to point B is much easier with turn-by-turn directions, traffic alerts, and alternate route suggestions. Although it’s not a GPS, IRS Form 990 guides organizations through the criteria to maintain tax-exempt status. One of the key compliance areas is governance. The CRI team works closely with organizations [...]

October 10th, 2016|NOT-FOR-PROFITS|

The Premiere of the FASB’s New Standard for Nonprofit Financial Statements

The Financial Accounting Standards Board (FASB) has rolled out the red carpet for the first major changes to its standards for nonprofits’ financial statement presentation in more than two decades. The new mandate is intended to clarify net asset classification requirements. In turn, users of nonprofits’ financial statements can more easily understand how not-for-profit organizations [...]


The Procurement Standards “Sunrise” for Nonprofit Organizations

Many organizations that receive federal funding may already be well-versed in the requirements of the Office of Management and Budget’s (OMB’s) Uniform Grant Guidance. Much of the Uniform Guidance, which is also known as a “government-wide framework for grants management,” applies to all federal awards and funding increments to existing awards made on or after [...]

October 7th, 2016|NOT-FOR-PROFITS|

Navigating the Roadmap of Nonprofit State Solicitation Registration

According to the IRS, approximately 40 states have enacted statutes that require nonprofit state solicitation registration before residents can be solicited for contributions—with some exceptions that may be exempt such as schools, hospitals, and religious organizations. Requirements can vary from state to state, but all charitable organizations should be familiar with regulations in a state before [...]

October 6th, 2016|NOT-FOR-PROFITS|

Telling Your Nonprofit’s Story with Form 990

Stories are a powerful way to appeal to your audience’s emotions. But in this increasingly technological age that provides more information than ever before (often from the click of a few buttons), donors are not just following their hearts. They’re also using their heads. Donors want to know how much of their support is really [...]

October 4th, 2016|NOT-FOR-PROFITS|

Coloring Inside the Lines of Board Governance

Nonprofits serve a variety of causes, but they all share at least one common element: a board of directors. Watch as Brian Barksdale discusses the role of the nonprofit board -- and how board members can better understand their purpose. Learn more about nonprofit board governance by downloading our CRInsight, The Nonprofit Guide to [...]

September 9th, 2016|NOT-FOR-PROFITS, VIDEO|