Many nonprofits are subject to annual audits. Although they can be challenging, they are often required for one or more reasons. A byproduct of that requirement is that audit standards can and do change and those changes can and do impact your organization. This year is no different. A new “Statement on Auditing Standards (SAS)”…
Leaders of nonprofits that are just getting started, or are relatively small, are generally focused on getting their organization up and running, raising money, and delivering on their mission. That’s to be expected. Properly tracking the financial activity of the nonprofit, and installing best practices, does not tend to receive the attention it deserves early on. There are accounting rules that…
IRS Form 990 is more than just a tax form that many nonprofits must file every year. It’s an opportunity to demonstrate to the IRS, as well as to current and potential stakeholders, that your organization is well-run and financially sustainable. It is also an opportunity to showcase key mission-centric programs. IRS Form 990 can…
Are you a for-profit accountant looking to put your skills to use for a favorite nonprofit cause? Then becoming a nonprofit treasurer might be a great fit for you and for the nonprofit. The treasurer position is a leadership role on a nonprofit’s Board of Directors. Board members have fiduciary duties such as overseeing the organization’s…
One of the most important duties as a member of a nonprofit’s Board of Directors is the stewardship of the organization’s financial resources. Board members play a pivotal role in monitoring the financial health of the organization. In fact, it is the fiduciary responsibility of the Board to do so. One of the ways the Board achieves this is by regularly reviewing several different financial reports. These financial documents…
If you work in the accounting and finance department of a nonprofit organization, you will likely be required to prepare and present financial reports to members of leadership or other stakeholders in your organization. While this may seem overwhelming, there are steps you can take to ensure you present financial reports effectively and confidently. This…
You might have a personal budget where you track your income and expenses to stay informed of your finances. Similarly, a nonprofit budget is a plan for how an organization will spend and allocate its money and includes a comprehensive list of revenue and expenses. Though a nonprofit budget is more complex than a personal…
It is not uncommon to go to the Board meeting of a nonprofit and discover that they don’t have a Board Treasurer. Having someone who oversees the organization’s finances seems like such an important job, so why is it neglected? The Treasurer role of a nonprofit is not an easy role. A quick look at the Treasurer’s duties outlined in any organization’s bylaws…
What does your current accounting situation look like? Are you having difficulty bringing your bookkeeper or accountant up to speed on your processes or struggling with stringent audit, compliance, GAAP (Generally Accepted Accounting Principles), or FASB (Financial Accounting Standards Board) requirements? Finding an experienced accountant for your nonprofit can be difficult and selecting the right…
Are you one of the few nonprofit organizations without a conflict of interest policy in place? Studies show that over 95% of nonprofit organizations employ a conflict of interest policy–and with good reason. These policies offer nonprofit organizations ethical standards and protection to ensure all actions on behalf of the organization are transparent and free of potential ethical dilemmas. In this article we’ll be covering the benefits of setting up a conflict of interest policy at your organization and how you can start…