Not-for-Profit Accounting Blog

A gift from the IRS – those small nonprofit organizations that missed the filing deadline of May 17, 2010 (automatic revocation on May 18, 2010) can come to the surface for air. 

The following is a statement from IRS Commissioner Doug Shulman:

“Now that the May 17 filing deadline has passed, it appears that many small tax-exempt organizations have not filed the required information return in time…I want to reassure these small organizations that the IRS will do what it can to help them...

The Pension Protection Act of 2006 made two important changes for tax-exempt organizations.  First, it mandated that organizations required to file Form 990 series informational returns will automatically lose their exempt status if the forms are not filed for three years in a row.  Second, the Act created a new form, Form 990-N, which is an electronic postcard for most small organizations (other than private foundations) with less than $25,000 in gross revenues.  Previously, these...

This issue of the Nonprofit Organization Update includes the following articles:

• Moving Toward Clarity - IRS Releases 2009 Form 990 Changes
• Foreign Accounting Reporting - More IRS Guidance is Here!
• SFAS 157 Fair Value Measurements - Additional NFP Perspectives
• Effective Policies - Building the Foundation of Your Organization
• Employee Benefits Security Administration's (EBSA) 2010 Priorities
• FIN 48 Update for Nonprofit Organizations

Moving Toward Clarity - IRS Releases 2009 Form 990 Changes
By Joyce...

SFAS 157 – A Not-for-Profit Perspective
By Dick Larkin

Nonprofit organizations use fair value accounting when they are:
(1) required by certain accounting standards to use fair value for certain transactions and balances, and
(2) permitted by certain other accounting standards to use fair value for certain other transactions and balances.

Click here for more of this story.

Endowment Funds and FSP 117-1
By Dick Larkin

A question has come up as to just what constitutes an endowment fund for purposes of...

Each and every year, the Federal government pours billions of dollars into the pool for non-profit organizations and state and local governments.  Attached to these dollars are strict stipulations that these organizations must follow.  To ensure adherence, the Single Audit Act, as amended, requires each reporting entity that spends $500,000 or more in a year to obtain what is known as a “single audit.”  In this type of audit, an opinion is not only expressed on the reporting entity’s...

Unfortunately, the downturn in the economy has effected many not-for-profit organizations that provide invaluable services to numerous communities and individuals.  For some of these organizations, management has thrown its hands in the air, determined that they just cannot provide these services anymore, and closed their doors.

A recent survey of about 100 not-for-profit organizations indicated that about 90% of those organizations have been directly affected by the downturn in the economy, some...