The commerciality doctrine was created to address concerns over nonprofits competing at an unfair tax advantage with for-profit businesses. It could trip up your organization if you’re not careful. Read on.
03.02.21 10:42 AM - Comment(s)
Accounting for contributions and grants has often proven complicated for not-for-profits, especially when they come with donor-imposed conditions. But 2018 guidance from the Financial Accounting Standards Board (FASB) provided some much-needed clarification of earlier instructions.
Provider factor
Tra...
Signs of financial distress in a not-for-profit can be subtle. But board members have a responsibility to recognize them and do everything in their power to avert potential disaster. Pay particular attention to:
1. Budget bellwethers. Confirm that proposed budgets are in line with strategi...
Contrary to popular belief, it’s usually perfectly legal to compensate not-for-profit board members — and sometimes it might even be necessary. But is it right for your organization?
Pros and cons
Board member compensation comes with several pros and cons to consider. Your organization might, for exam...
Auditors examining a not-for-profit’s financial statements spend considerable time on the revenue figures. They look at the accounting methods used to record revenues and perform a detailed income analysis. You can use the same techniques to increase your understanding of your organisation's re...
The bookkeeper is one of any company’s most trusted employees. Unfortunately, that trust isn’t always deserved. Bookkeepers — particularly those in small and midsize businesses — are ideally positioned to embezzle from their employers.
Less means more
When bookkeepers go bad, there are plenty of ways ...
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