Non-Profits
If your nonprofit receives significant federal funds, it may be subject to the Office of Management and Budget’s Administrative Requirements, Cost Principles, and Audit Requirements (Uniform Guidance). In addition, if your nonprofit spends $750,000 or more in federal awards in a fiscal year, it probably requires a single audit, which is an annual financial statement…
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Nonprofit organizations are obliged by federal and state wage-and-hours laws to perform a certain amount of time tracking. Funders may also stipulate timekeeping practices. Fortunately, timekeeping software can make the job a lot easier for staffers and managers. Here’s how to ensure your nonprofit complies. What’s required and what’s not You generally are required to document…
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To control your nonprofit’s expenses and improve operating efficiency, you need to keep an eye on the numbers. This should come as no surprise, but which measures are important? Which ratios can help you identify how much currently goes toward programming (as opposed to administration), how much you spend on fundraising (compared to funds raised),…
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Although failing to file a Form 990 with the IRS when required to do so is probably a more serious mistake, filing it with data errors isn’t recommended. Your nonprofit should strive to be as accurate as possible when preparing accounting and other tax documents. Carelessness can cost you support from donors and grantmakers and,…
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Whether your nonprofit is holding an in-person or online auction to raise funds, you need to be careful to adhere to tax requirements. For example, you should provide written acknowledgments to donors of items valued at $250 or more, including good faith estimates of any goods or services provided in return for contributions. Here’s an…
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Organizations that understand how auditors verify account balances and transactions can minimize disruptions during audit fieldwork and maximize the effectiveness of financial statement audits. Here are five types of audit evidence auditors gather to help them form opinions regarding your financial statements. 1. Original source documents Auditors can verify an account balance or record by…
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