Category: Nonprofit

  • Why get up in the morning?

    I was annoyed with an IRS agent a week ago who criticized my client’s business. This young businessman client grossed about $100,000 per year in each of his first two years but declared little net income due to high start-up costs. The agent said “Why does he get up and go to work each day? He would…

  • Preparing for an audit of your nonprofit organization

    Preparing for an audit of your nonprofit organization

    Most nonprofit organizations are required to present an annual audit, review or compilation report prepared by an independent accountant. The requirement might be incorporated into the organization’s bylaws or might be required by a government agency or funding organization. The cost of an accounting procedure is substantial and depends on many factors. For discussion purposes…

  • Pennsylvania charity registration and audit requirements

    The requirement of a Pennsylvania charity to register and submit an CPA attestation depends on a number of factors including the amount of “receipts”, “contributions” or “solicitations”. All three of these terms are used in the applicable code sections. Today I received email confirmation from the Pennsylvania Department of Revenue that, for this purpose, “receipts”, “contributions”…

  • Unregistered Charities

    Unregistered Charities

    Each state has laws requiring proper registration of charitable organizations, professional fundraisers and professional solicitors. The intent is to protect citizens by requiring full public disclosure of the identity of persons who solicit contributions from the public, the purposes for which such contributions are solicited and the manner in which they are actually used. Last…

  • Church and taxes

    Church and taxes

    Congress gives at least four special tax considerations to churches*: First, churches are generally not  required to pay income tax based on the result of their normal operations. This is the same as other tax-exempt organizations. Second, unlike other tax exempt organizations, churches are generally not required to file an annual informational filing with IRS.…

  • Unregistered charity soliciting public donations

    Unregistered charity soliciting public donations

    As a small business accountant working with nonprofit organizations I frequently find deficiencies in their accounting or legal filings. Minor oversights are commonplace and I’m pretty good at getting them resolved before they cause too much of a problem. But I’ve never come across such an egregious situation as a multi-million dollar nonprofit organization soliciting…

  • No excuse accounting

    No excuse accounting

    Last week I wrote that there are no excuses for an accounting system that does not reconcile with the bank and financial accounts. This week Insightful Accountant carried this article about the improved reconciliation features within QuickBooks online accounting system. QuickBooks accounts for more than 3 out of 5 small business and nonprofit organization accounting systems. I think…

  • Clinton Foundation vs. Trump Foundation

    Clinton Foundation vs. Trump Foundation

    Recent news reports about the Clinton Foundation and Trump Foundation allow us to draw sharp distinctions between the two organizations. Starting with the basics, the Clinton Foundation is a properly registered charity that is actually active in attempts to do good in the world. The Clinton Foundation completes required filings and audits. Some transactions reported in this election…

  • Tips for new nonprofit board members

    Tips for new nonprofit board members

    When elected as a director you want to make a good impression, help the organization and boost your own career as well. That’s understood. Here are some tips published by the NJCPA for getting involved in community organizations: 1. Block out the year’s board meeting schedule on your calendar. Plan on attending them all. Carefully read the…

  • Mistakes to avoid as a new nonprofit board member

    Mistakes to avoid as a new nonprofit board member

    When elected as a director you want to make a good impression, help the organization and boost your own career as well. That’s understood. But some new directors take it too far and make strategic errors, according to tips published by the NJCPA. Most of these should be obvious but we spelled out nine pitfalls to avoid…