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Not-For-Profit News


Focus on Not-for-Profits: Is Your School Eligible for Emergency Assistance to Non-Public Schools?

You might be thinking that if your organization is not a live venue or you didn’t have a significant decrease in gross receipts in 2020 vs. 2019, then the 2021 Consolidated Appropriations Act (CAA) doesn’t have a lot to offer your organization.


Focus on Public Sector, Not-For-Profit, Colleges and Universities: 2020 OMB Compliance Supplement Addendum Update

On December 22, 2020, the Office of Management and Budget (OMB) released the 2020 OMB Supplement Addendum (Addendum) to address the largest new federal programs established by the Coronavirus Aid, Relief, and Economic Security (CARES) Act.


Focus on Public Sector, Not-For-Profit, and Colleges and Universities: 2020 OMB Compliance Supplement Update

On August 18, 2020, the Office of Management and Budget (OMB) released the 2020 OMB Single Audit Compliance Supplement (Supplement).


Focus on Not-For-Profits: Deferral of Withholding and Payment of the Employee Share of the Social Security Tax

Late on August 28th, the IRS issued additional guidance regarding the deferral of withholding and payment of the employee share of the Social Security tax as directed by President Trump on August 8th in a memorandum.  As a reminder, this memorandum does not change an employee’s underlying tax obligation but rather just defers the payment of this tax obligation.


COVID-19: Missouri Non-Profit Relief and Recovery Grant Program

This week, Missouri Governor Mike Parson announced the Non-Profit Relief and Recovery Grant program.


COVID-19: Not-for-Profit Organizations: Should We Keep or Return our Payroll Protection Program Loan?

When the Small Business Administration (SBA)’s Payroll Protection Program (PPP) launched as part of the CARES Act, many not-for-profit organizations, along with other entities, rushed to submit their applications to qualify for these loans and hopefully future loan forgiveness. The sense of scarcity and urgency was high as entities were applying at the same time the SBA was working to finalize the program specifics.


COVID-19: PPP Loan Funding is Not Federal Assistance

There are certainly more questions than answers related to the CARES Act funding being issued as of late.


COVID-19 Legislation: What It Means for Not-For-Profit Organizations

Not-for-profit organizations are navigating financial hardship and uncertainty caused by the COVID-19 pandemic. Fortunately, there are now numerous options available to ease these unprecedented situations.


COVID-19: How Coronavirus is Impacting Not-for-Profit Organizations

On March 18, 2020, President Trump signed into law the Families First Coronavirus Relief Act (Act). The Act has many provisions impacting individuals, families, employees and employers.


Focus on Not-For-Profits: Public Law 116-94 Repeals the “Parking Tax” and Includes a Change for Private Foundations

Public Law 116-94, the Further Consolidated Appropriations Act (the Act), was signed by the President on December 20, 2019.  Among the many provisions of this Act were two that have a direct impact on not-for-profit organizations.


Focus on Not-For-Profits: Holiday Cheer (Potentially) Related to the “Parking Tax”

Yesterday the House of Representatives passed HR 1865, Taxpayer Certainty and Disaster Tax Relief Act of 2019 (the Act).


Focus on Not-For-Profits: Final Regulations Issued June 13, 2019 Affect Charitable Contribution Deductions and State Tax Credits

On June 13, 2019, final IRS Treasury Regulations were issued that impact and directly relate to several of the provisions enacted in the Tax Cuts and Jobs Act (December 2017). 


Focus on Not-For-Profits: IRS Issues Guidance on How to Compute UBTI Related to Providing Parking to Employees of Tax-Exempt Entities

On December 10, 2018, the IRS issued long-awaited guidance on the application of two new tax provisions added by the Tax Cuts and Jobs Act. The provisions under this Act are effective January 1, 2018. Notice 2018-99 provides guidance for tax-exempt entities on how to compute the additional Unrelated Business Taxable Income (UBTI) generated related to parking provided to employees under IRC Section 512(a)(7).


Focus on Not-For-Profits: New IRS Proposed Regulations Could Affect Charitable Contribution Deductions and State Tax Credits

The Internal Revenue Service (IRS) issued proposed regulations on August 23, 2018 that could affect charitable contribution deductions that individual taxpayers are able to claim as itemized deductions for income tax purposes.


Focus on Not-For-Profits: Changes to Missouri Tax Credits Available to Donors of Certain Not-for-Profit Organizations

In recent weeks, Missouri Governor Mike Parson signed a number of bills into law, including one that will modify certain existing tax credits and create new tax credits to encourage donations to certain social service organizations.


Focus on Not-For-Profit and Colleges & Universities: Update on New Tax Law - Taxation of Certain Fringe Benefits

The Tax Cuts and Jobs Act (the Act), enacted in late 2017, was the most significant change in the tax law in over 30 years. Several provisions of the Act could have a direct or an indirect impact on not-for-profit/tax-exempt entities (exempt organizations).


Focus on Not-For-Profit Organizations and Colleges & Universities: Tax Cuts and Jobs Act – Highlights from an Exempt Organization View

As this summary is being written, the Tax Cuts and Jobs Act (the Act) is approaching passage by Congress and signature by the President. The changes in the Act will affect organizations in a variety of ways. The following highlights are based on the drafts of the bill and of the conference report.


Focus on Public Sector and Not-For-Profits: 2017 Compliance Supplement

On August 14, 2017, the Office of Management and Budget (OMB) announced the release of the 2017 OMB Compliance Supplement. The compliance supplement contains the policies and procedures required to be followed by federal, state and local entities in regards to expending federal funding and the procedures required to be performed by auditors when conducting the single audit over these federal programs.


Focus on Public Sector, Not-For-Profit and Colleges & Universities: Extension of Grace Period for Uniform Guidance Procurement Rules

On May 17, 2017, the Office of Management and Budget (OMB) published a notice in the Federal Register which provides an additional one-year extension of the grace period permitting recipients of federal funds to delay implementation of the procurement requirements found in the OMB’s Uniform Guidance.


Focus on Not-For-Profits: 403(b) Retirement Plans and The Universal Availability Rule

The Department of Labor’s (DOL) new “fiduciary rules” are scheduled to become effective April 1, 2017; however, the DOL is currently considering legal options regarding a possible delay in the applicability date of these new rules. Trustees should continue to monitor the status of these rules over the next few weeks in order to confirm that plans are fully complying once the rules do take effect.


Focus On Not-For-Profits: Phishing Scam Recycled to Target Nonprofit Organizations

Recently the Internal Revenue Service (IRS) and other agencies issued an alert on a W-2 phishing scam. The original target was for profit businesses. Now nonprofits are being targeted as well. The criminals prefer to target organizations instead of individuals, because they may obtain sensitive information on a much larger scale.


Focus on Not-For-Profits: BBB Issues Scam Alert About QuickBooks Phishing Con

Recently the Better Business Bureau issued a scam alert about a phishing scam targeting small businesses.


Focus on Not-For-Profits: Executive Compensation Policies and Best Practices

If you are familiar with Form 990, you are familiar with its question about compensation policies. Part VI, Section B of the 990, Question 15 asks if the organization’s process for determining the compensation of the organization’s top management official and other officers and key employees includes “a review and approval by independent persons, comparability data, and contemporaneous substantiation of the deliberation and decision.”


Focus on Not-For-Profits: Should Your Not-For-Profit Be Audited?

Many not-for-profits may wonder, “Is an audit necessary for our organization?” In reality, there is no one-size-fits-all answer to that question. There are several different levels of assurance services available to satisfy the varying needs of an organization. Some are much more in-depth than others, but all services can provide value to any not-for-profit organization.


Focus on Not-For-Profits: ASU No. 2016-14, Presentation of Financial Statements of Not-For-Profit Entities

Accounting Standards Update (ASU) No. 2016-14, Presentation of Financial Statements of Not-for-Profit Entities, was released August 18, 2016 by the Financial Accounting Standards Board (FASB), with the ASU effective for annual financial statements issued for fiscal years beginning after December 15, 2017. As previously presented and discussed in our seminars, the changes in this ASU are the first significant changes to not-for-profit entities’ financial statement presentation in more than 20 years.


Focus On Not-For-Profits: Launch of RubinBrown's QuickBooks Software Users’ Group

RubinBrown is focused on helping our clients grow and providing resources to help achieve this growth. Because many organizations currently utilize QuickBooks, we are interested in sharing our expertise to help organizations get the most out of this software.


Focus on Not-For-Profits: Is Your 501(c)(4) Organization Required to File Form 8976 by September 6, 2016?

On July 8, 2016, the Internal Revenue Service published regulations implementing Section 506 of the Internal Revenue Code. Section 506 requires that certain 501(c)(4) organizations notify the IRS within 60 days of when they are formed.


Focus on Public Sector, Not-For-Profit and Colleges & Universities: New DCF Changes and Related Filing Extensions

On July 19, 2016, the U.S. Office of Management and Budget (OMB) released the newest version of the Data Collection Form (DCF) which incorporates changes that were needed to conform to the Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards included in 2 CFR 200 (Uniform Guidance).


Focus on Not-For-Profits: Federal Tax Legislation Impacts Exempt Organizations

Back in December, Congress passed, and the President signed into law, tax legislation as outlined below. Many provisions of this law directly impact Not-For-Profit entities and other provisions may have an indirect impact. The following summary of those provisions should be considered when planning for tax reporting for 2016.


Focus on Not-For-Profits: IRS Proposal to Provide Social Security Numbers of Donors Causes Concern

An IRS Proposed Regulation issued in September concerning donor disclosure options for tax-exempt organizations has caused concern in the charitable giving world.


Focus on Not-For-Profits: Membership Dues or Contributions?

Does your organization have members? Are you sure? You may be surprised to find out you really have contributors. But how can you tell the difference? The Financial Accounting Standards Board (FASB) comes to your rescue in its Accounting Standards Codification (ASC) for not-for-profit entities. FASB ASC 958-605-55, covering revenue recognition, provides implementation guidance and illustrations.


Focus on Not-For-Profits: FASB’s Proposed Changes to the Not-for-Profit Financial Statement Reporting Model

On April 22, 2015, FASB issued an exposure draft of proposed accounting standards updates that would substantially revise the format and content of the financial statements of not-for-profit organizations, which can be grouped into four broad categories: net asset classification, statement of activities presentation, statement of cash flow presentation or liquidity information.


Focus on Not-For-Profits: FASB Issues Exposure Draft on Presentation of Financial Statements of Not-for-Profit Entities

On April 22, 2015, the Financial Accounting Standards Board (FASB) issued a proposed Accounting Standards Update, Presentation of Financial Statements of Not-for-Profit Entities.


Focus on Not-For-Profits: Private Foundations Must Meet the 5% Annual Distribution Requirement While Ensuring the Long-Term Viability of Their Investment Portfolios

Private foundations face a challenge that other foundations and not-for-profit organizations do not. Perhaps the most significant of these is the requirement that private foundations distribute 5% of the fair market value of their assets each year.


Focus on Not-For-Profits: Protecting Your Religious Organization Against Fraud and Abuse

Despite numerous reports of fraud and abuse, most religious organizations are reluctant to admit that they could find themselves a victim of fraud by one of their own members or employees.

Religious institutions strive to build a trusting relationship with their members and employees that are built on the foundation of religious beliefs. This environment, coupled with tight budgets and limited financial oversight, makes religious organizations particularly vulnerable to fraud.


Focus on Not-For-Profits: Consolidation Considerations

As competition has increased in attracting donor funding, many not-for-profit organizations have looked to create separate partnerships and ventures in order to better serve their constituents. When these new entities are created, organizations must evaluate whether generally accepted accounting principles require these entities to be consolidated for financial statement presentation. Whether a not-for-profit should consolidate a related entity depends on two factors: economic interest and control.


Focus on Not-For-Profits: Accounting for Private School Capital Projects

An important focus of private schools is the property and equipment which the school uses on a daily basis to educate students and provide extra-curricular activities. Capital projects occur frequently at schools, and the accounting treatment for these capital projects often presents unique challenges.


Focus on Not-For-Profits: Should Your Church Be Audited?

The answer to that question depends upon the needs of your church. Do the church's by-laws require an audit? Does your church have a loan covenant that requires an audit or are there plans for a future facility or renovations that will require financing? Would the additional accountability provided by an external audit provide comfort to your congregation and the community? Is the church interested in the by-products of an audit, such as suggestions to strengthen internal controls surrounding cash processes? Or, is your church required by a voluntary membership organization to conduct an audit as a condition of membership and accreditation?


Focus on Not-For-Profits: Responding to Information Technology Risks

Not-for-profit organizations face numerous risks, and in the information age, the threat to online security is becoming more and more prevalent. Per Symantec Corporation’s “Internet Security Threat Report 2013”, traditional threats are expanding into new forums such as social media and mobile devices, with an approximate 42% increase in targeted attacks noted in 2012. Particularly relevant for not-for-profit organizations is the fact that 31% of overall targeted attacks were against companies and organizations with fewer than 250 employees, up from 18% in 2011. Not-for-profit organizations can no longer assume that based on their size, they would not be a target for attackers.


Focus on Not-For-Profits: Accounting Standards Update and Compliance Study on 457(b) Plans

In April 2013, the FASB issued Accounting Standards Update (ASU) 2013-06, Not-for-Profit Entities: (Topic 958): Services Received from Personnel of an Affiliate. The standard was developed as a result of the current diversity in practice of recording the services of people who work for an organization but are employees of a separate affiliated entity.


Focus on Not-For-Profits: Key Cash Controls at Events and Activities

Fundraising events are often held by non-profit organizations to promote the mission of the organization and raise funds to support the organization and its programs. Sporting events and activities are also very common, especially at secondary-level schools.


Focus on Public Sector & Not-For-Profit: OMB Proposes Changes to Single Audits

Earlier this year, the U.S. Office of Management and Budget (OMB) proposed a number of significant changes to the way Single Audit engagements will be conducted going forward.


Focus on Not-For-Profits: Trends in Financial Statement Reporting

Not-for-profit organizations often receive advertising or other promotional materials at no charge in order to help promote their mission or solicit donations.


Focus on Not-For-Profits: IRS Doesn't Allow Two Parsonages

One of the largest tax benefits available to "ministers of the gospel" (priests, rabbis, ministers, pastors, etc.) is the parsonage exclusion. This provision allows these individuals to receive the value of lodging or a cash allowance used to provide lodging on an income tax-free basis.


Focus on Not-For-Profits: Alternative Investments & Unrelated Business Income

Over the past two decades, many not-for-profit organizations, including foundations and endowment/investment funds, have begun investing more regularly in alternative investments. Alternative investments are defined for financial reporting purposes as investments for which a readily determinable fair value does not exist.


Focus On Not-For-Profits, Public Sector and Colleges and Universities: OMB Proposes Changes to Single Audit Requirements

On January 31, 2013, the U.S. Office of Management and Budget (OMB) issued Proposed OMB Uniform Guidance: Cost Principles, Audit, and Administrative Requirements for Federal Awards, a publication which contains proposed regulations that would significantly modify the requirements associated with Single Audits conducted pursuant to OMB Circular A-133.


Focus on Not-For-Profits: Rise of Groupon and Other Deals

With more than 22 million Groupons sold in the United States and a user base exceeding 50 million, many businesses, as well as not-for-profit organizations, have turned to Groupon, as well as other "deal sites" such as Living Social.


Focus on Not-For-Profits: The American Taxpayer Relief Act of 2012 and Beyond

On January 2, 2013, the President signed the American Taxpayer Relief Act of 2012 (the "Act") into law. From the viewpoint of many charitable organizations, the majority of the provisions of the Act related to not-for-profit organizations target temporary extensions of various donation benefits.


Focus On Not-For-Profit Social Service Agencies: Fundraising Events Reporting on Form 990 or 990-EZ, Schedule G, Part II

The primary purpose of a fundraising event is to raise funds to support the mission of a social service agency or other not-for-profit organization by selling goods or services.


Focus On Not-For-Profit Private Schools: Implications of School Raffles

Raffles are becoming a popular way for private schools and other tax-exempt organizations to raise funds.

There are potential pitfalls to be aware of, so before holding your first raffle, or even if you’ve already had a raffle or two, consider the following questions and answers.


Focus on Not-For-Profit Religious Organizations: Centralization of Administrative Functions

As religious organizations face a decline in the number of individuals entering their orders, the capacity to handle administrative functions to run their organizations becomes more difficult to manage.


Focus on Not-For-Profit Trade & Membership Organizations: Taxable Versus Nontaxable Fringe Benefits

Fringe benefits and their taxability is a complex issue many nonprofits do not fully understand. In fact, this area is often overlooked and organizations are often surprised to learn that some of the perks they provide to their employees and board members should be reported as compensation, even if no cash is involved. The consequences for not properly reporting taxable fringe benefits can be detrimental not only to the organization but also to the individual. Additional employment taxes may be due on the benefits. Note that board members who are not otherwise employed by the organization are considered independent contractors, not employees. Many benefits require an employer-employee relationship.


Focus on Not-For-Profit Foundations: Private Foundations Penalty Taxes

Good intentions and even profitable transactions can lead to significant tax liabilities when a tax-exempt private foundation is a party to the transaction.


Focus on Public Sector & Not-For-Profit: 2011 OMB Compliance Supplement and FFATA

In March 2011, the Office of Management and Budget (OMB) issued the 2011 edition of the A-133 Compliance Supplement. The supplement is effective for Single Audits of fiscal years beginning after June 30, 2010, and it supersedes the 2010 Compliance Supplement. 


Focus on Not-For-Profit Religious Organizations: Ministers’ Housing Allowances

By taking some simple actions, a well-informed church can help its minister save money. The parsonage exclusion and housing allowance (also called rental allowance) is the largest tax benefit available to ministers. This exemption allows a minister to exclude from Federal taxable income either the value of a home provided by the church or payments specifically allocated as a housing allowance.


Focus on Not-For-Profits: Strategies and Updates for the New Year for Arts and Cultural Organizations

For many arts and cultural organizations, the winter months mark the halfway point in their year and provide a good opportunity for management to review the results of last year and make sure they are on target to meet this year's revenue and budget goals as well as strategic objectives.


Focus on Not-For Profits: Tax Act Extends Charity-Related Provisions and UBTI Exception

The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (“Act”) was signed by the President on December 17, 2010. Several provisions in the Act may impact not-for-profit organizations


Focus on Not-For-Profits: IRS Filing Relief Program

A number of small nonprofit organizations are at risk of losing their tax-exempt status because they failed to file required returns for 2007, 2008 and 2009.


Focus on Not-For-Profits: Health Insurance Premium Credits

The IRS recently announced the process for small not-for-profit entities to claim a tax credit for the health insurance premiums you pay on your employees.


Focus on Not-For-Profits: Healthcare Reform & Not-For-Profit Organizations

With the signing of the two landmark bills comes sweeping changes to healthcare in the United States.


Focus on Not-For-Profits: 2009 Revisions to Form 990

The 2009 version of Form 990 is not as radically different as the 2008 version (which had been changed significantly from the 2007 version), but there are several important changes; and in many places, the instructions have been revised to clarify how organizations are to complete the Form and Schedules.


Focus on Not-For-Profits: Arts Organizations – Identifying Potential Unrelated Trades or Businesses

Given the wide variety of activities conducted by arts organizations, it becomes increasingly difficult to distinguish which activities fall under the IRS’s definition of an unrelated trade or business.


Focus on Not-For-Profits: Important Update on 403(b) Employee Benefit Plans

Many not-for-profits organizations are now subject to additional compliance requirements related to the sponsorship and oversight of 403(b) employee benefit plans. Regulations were passed in late 2007 by the Department of Labor (DOL) which eliminated previous exemptions related to the Form 5500 for 403(b) plans.


Focus on Not-For-Profits: Selling More Scrip

Many not-for-profit organizations, including churches and other religious organizations, already sponsor scrip programs. A recent IRS ruling adds a potential new benefit to this fundraising tool. Scrip is substitute money. It is usually in the form of cards or certificates that can be used as cash at various merchants.


Focus on Not-For-Profits: FASB Staff Position No. 117-1

On August 6, 2008, the Financial Accounting Standards Board (FASB) issued FASB Staff Position No. 117-1 (FSP 117-1). This pronouncement clarifies various financial reporting matters related to donor-restricted endowments held by not-for-profit organizations operating in states that have enacted the Uniform Prudent Management of Institutional Funds Act of 2006.


Focus on Not-For-Profits: Compensation Reporting Changes for the 2008 Versions of IRS 990 Forms

The new Form 990 has changed the requirements for reporting of compensation of officers, key employees and board members. There also are changes for reporting the top paid employees other than officers and key employees and for reporting the top paid independent contractors.


Focus on Not-For-Profits: Preventing and Detecting Fraud

The St. Louis Division of the Federal Bureau of Investigation recently announced that the former Chief Financial Officer of a well-respected worldwide charitable organization plead guilty to a scheme to defraud the organization of more than $800,000. In light of this news, it is instructive and timely to address the important role the Board of Directors of not-for-profit organizations have in strengthening internal controls.


Focus on Not-For-Profits: OMB Issues New Data Collection Form and Online Instructions

Every 3 years the Office of Management and Budget has the opportunity to revise the Data Collection Form (the Form or DCF) used for submitting to the Federal Clearing House A-133 report packages.


Focus on Not-For-Profits: Get Ready for the Redesigned Form 990!

The IRS has released advance copies of the redesigned Form 990 and the related instructions. For tax years beginning on or after January 1, 2008, the new Form 990 filed by most tax-exempt organizations will involve additional disclosures.


Focus on Not-For-Profits: New Tax Law Affects Exempt Organizations

On August 17, 2006, the President signed the Pension Protection Act of 2006. Included within this bill are many of the 2005 Senate Finance Committee proposals for charities and other tax-exempt organizations. Some of the changes provide incentives for donors.


Focus on Not-For-Profits: St. Louis County Personal Property Tax

Many charitable and educational organizations (section 501(c)(3) organizations) that did not receive a personal property tax declaration in prior years have received such a form from the St. Louis County assessor's office in the past few weeks.


Focus on Not-For-Profits: New Tax Law Affects Charities and Donors

The American Jobs Creation Act contains provisions which may affect tax exempt organizations. In particular, organizations that receive deductible charitable donations and their donors will have additional reporting burdens.