New Accounting Alternatives for Not-for-Profits

Nonprofits: New accounting alternatives for reporting goodwill and other intangibles Did you know that the Financial Accounting Standards Board (FASB) recently extended the simplified private-company accounting alternatives to not-for-profit organizations? Many merging nonprofits, including educational institutions and hospitals, welcome these practical expedients. Here are the details. Alternative for goodwill The first method allows for the…

Ready for the new not-for-profit accounting standard?

A new accounting standard goes into effect starting in 2018 for churches, charities and other not-for-profit entities. Here’s a summary of the major changes: Net asset classifications The existing rules require not-for-profit organizations to classify their net assets as either unrestricted, temporarily restricted or permanently restricted. But under Accounting Standards Update (ASU) No. 2016-14, Not-for-Profit…

Credit Cards and Fraud

Having a policy can thwart fraud When it comes to fraud in any organization, credit cards are frequently a fraudster’s tool. Because the use of credit cards is so commonplace today, there’s always the risk of improper charges to your account. Credit card misuse could hurt your organization financially and jeopardize its reputation in the…

Consider Your Not-for-Profit Growth Stage

Nonprofit Life Cycle Challenges and opportunities mark growth stage Nonprofits generally mature along a standard life cycle. An organization’s first steps are typically followed by a period of growth, which, ideally, is less eventful and stressful than those early years. The growth stage — beginning two or three years after “birth” and continuing until “maturation”…

Transferring Not-for-Profit Leadership

Founder’s Syndrome and Not-for-Profits By Mike Klein, CPA Founder’s Syndrome is a term that describes the challenge a not-for-profit organization could encounter when the time comes to transition its leadership functions from its founder to new management. The ailment occurs if the original leader has resisted delegating key responsibilities to other staff members — or…

Why Good Governance Depends on Effective Oversight

Effective Finance Governance Protects Your Organization Unlike public companies, an audit committee is not required by not-for-profit boards. In fact the Stanford Graduate School of Business 2015 Survey on Board of Directors of Nonprofit Organizations found a surprising 42 percent of not-for-profit organizations don’t have audit committees. If your organization is among that 42 percent,…

Cybercrime and Not-for-Profit Organizations

By Reggie Novak, CPA, CFE Ciuni & Panichi, Inc. senior manager and certified fraud examiner Is Your Not-for-Profit a sitting duck? Not-for-Profits generally have limited administrative personnel and often lack dedicated IT staffers. They also typically have smaller budgets for technology solutions such as firewalls, antivirus programs, and intrusion protection. It’s no surprise, then, that…