Non-Profit Update: December 2018

Foundations for Board Governance
Looking to increase the effectiveness of your nonprofit’s board? RSM’s guide highlights common problems and practical solutions related to board governance.

The evolving role of outsourcing within nonprofit organizations
Adjusting existing outsourcing strategies can help streamline service delivery and further increase efficiency and productivity.

Phishing awareness: Recognizing, addressing and avoiding threats
Phishing is one of the most common and most successful forms of cyberattack. Learn how to recognize the warning signs of potential phishing.

IRS issues guidance for determining UBTI for separate businesses
The IRS issued Notice 2018-67, providing interim and transition rules for determining UBTI for separate trades or businesses.
Read more.

Recorded webcast: Annual tax update webcast for nonprofit organizations
Learn about the current tax landscape for exempt organizations as well as look ahead to 2019.
View the webcast.

 

At Insero, we make it our business to stay abreast of the latest trends and technical updates in accounting, tax, and audit and we understand how important timely updates are to our clients. As a member of the RSM US Alliance, we also have the benefit of access to the resources and subject matter experts of RSM US LLP (formerly known as McGladrey LLP). This includes regular updates on the latest insights for non-profit organizations.

Non-Profit Update: October 2018

Is there really a tax cut in the TCJA for exempt organizations?
Potential tax increase for exempt organizations hidden in the TCJA as part of the corporate tax cut.

Cybersecurity: Understanding the threat
Answer our five-question online assessment to help evaluate how your security program stacks up.

Changes to accounting for grants and contributions made and received
An overview of the clarifications to identifying reciprocal and nonreciprocal transactions and conditional and unconditional contributions.

Managing lease accounting for public and private higher education
Colleges and universities must adjust to the new level of judgments and estimates required under ASC 842 and GASB 87 lease accounting.

Recorded webcast: 2018 federal grants management update
Learn about current developments in grants management compliance requirements for nonprofits.

 

At Insero, we make it our business to stay abreast of the latest trends and technical updates in accounting, tax, and audit and we understand how important timely updates are to our clients. As a member of the RSM US Alliance, we also have the benefit of access to the resources and subject matter experts of RSM US LLP. This includes regular updates on the latest insights for non-profit organizations.

What Non-Profits Need to Know About ASU 2018-08

The Financial Accounting Standards Board (FASB) has issued Accounting Standards Update (ASU) 2018-08. This update improves and clarifies the guidance regarding contributions received and contributions made.

The board found that there was a lack of clarity and consistency in how grants and contracts were characterized as either exchanges or contributions. In addition, they found that non-profit organizations differed in how they determined if contributions were conditional or unconditional.

“That’s important because that distinction between conditional vs. unconditional impacts the pattern of revenue recognition,” said Christine Botosan, FASB Board Member.

top tab folder labeled grants related to ASU 2018-08

ASU 2018-08 provides criteria for determining between exchanges or contributions by looking at whether the provider is receiving commensurate value in return for resources transferred. This clarification will help organizations determine if the transfer should be treated as a contribution (nonreciprocal transaction) or an exchange (reciprocal) transaction.

Note that the “commensurate value” described above is value to the provider, not to the general public. So, funds transferred from New York State would be considered a contribution unless New York State itself receives commensurate value.

If commensurate value is not provided, the organization should determine if the transaction is a third-party payment for an existing exchange transaction (such as Medicare, Medicaid, Pell Grant, etc.) If commensurate value is not provided, and the transaction isn’t a third-party payment, it should be accounted for as a contribution.

The ASU also provides additional detail on how to distinguish conditional contributions from unconditional contributions, as well as the difference between donor-imposed conditions and donor-imposed restrictions. Conditional contributions must include a barrier that must be overcome and a right of return or right of release. If a contribution is determined to be unconditional, it must be analyzed to determine if it is restricted or unrestricted.

ASU 2018-08 applies primarily to non-profit organizations, however it can apply to organizations that receive or make contributions of cash and other assets, including businesses. It does not apply to transfers of assets from governments to businesses.

The amendments in this ASU are effective for reporting periods beginning after June 15, 2018 for non-profit organizations and public companies serving as resource recipients (and December 15, 2018 for other organizations). For non-profit organizations serving as resource providers, the amendments are effective for reporting periods beginning after December 15, 2018 (and December 15, 2019 for other organizations.) Early adoption is permitted.

For more information on ASU 2018-08, visit https://www.fasb.org/home.

For more information on Insero’s non-profit solutions, visit https://inserocpa.com/clients/non-profits.html or contact us today.

Non-Profit Update: July/August 2018

New standards for nonprofits present their own challenges
New standards for nonprofit financial statements and revenue recognition will need to be implemented over the next two or three years.

How IT outsourcing strengthens security for nonprofits
The evolving complexity of strong cybersecurity underscores the value of an outsourcing partner dedicated to keeping cybercriminals out. It often requires just a series of emails to get senior finance executives to begin looking beyond their own IT departments to safeguard their businesses against cyber-hackers.

GDPR enforcement is here…is your organization prepared?
General Data Protection Regulation (GDPR) noncompliance could mean potentially significant fines and penalties. Organizations must know where they stand and how to react before it’s too late. The following infographic provides key insights into GDPR compliance requirements, helping your organization understand critical elements of the regulation.

Nonprofit tax reform resource center
The recently enacted Tax Cuts and Jobs Act has produced widespread tax law changes for exempt organizations. Learn more about the latest updates in our resource center. Our resource center features the latest in developments related to the potential effects of the new tax law for exempt organizations.

 

At Insero, we make it our business to stay abreast of the latest trends and technical updates in accounting, tax, and audit and we understand how important timely updates are to our clients. As a member of the RSM US Alliance, we also have the benefit of access to the resources and subject matter experts of RSM US LLP (formerly known as McGladrey LLP). This includes regular updates on the latest insights for non-profit organizations.

Case Study: Non-Profit Improves Processes, Hires New CFO

Client: $4 million non-profit organization

Service: Non-Profit Outsource Accounting Services

 

Situation

When the Chief Financial Officer of a $4 million non-profit left abruptly, the board reached out to Insero & Co.’s Non-Profit Outsource Accounting Services Group for assistance. They had an immediate need for coverage, but also wanted to step back and figure out what would be best for the organization in the long run. This was especially important since the organization had experienced recent turnover of nearly all internal management roles, including the Executive Director. The board asked Insero to help evaluate the CFO position and make recommendations for process improvements, as well as hiring and pay structure for the accounting department.

 

Resolution

Insero’s Outsource Consultants were able to provide the organization with an interim CFO to fill the immediate needs of day to day operations, as well as a strategic planning partner to assess the current structure and provide guidance to the board. After an initial assessment, Insero was able to assist with the recruiting and placement of a new CFO as a direct hire. We also developed a six-month transition plan to support the new CFO, who attends all board meetings and delivers Finance and Board Packages, which have now been automated to print directly from QuickBooks.

Other process improvements included:

  • Grant management procedures
  • Month-end close process
  • Refining the annual budget process
  • Defining ownership roles within the organization

All of this was achieved at a fraction of the cost of the previous CFO’s salary and benefits.

executive director of a non-profit review financial data and process improvements with outsource consultants

Learn More

With over 40 years of experience working with non-profits, Insero’s specialists have the knowledge and capacity to help you with your organization’s needs. Our clients include foundations, arts and cultural organizations, chambers of commerce, social clubs, fraternities and sororities, housing assistance and development organizations, recreation facilities and programs, community support organizations, child care providers, and more. Learn more about our service offerings below: To learn more about how we can help your organization, contact us today.

 

Non-Profit Update: May/June 2018

Nonprofit tax reform resource center
The recently enacted Tax Cuts and Jobs Act has produced widespread tax law changes for exempt organizations. Learn more about the latest updates in our resource center.

Donor-advised funds: Accounting implications related to pledges
This article addresses the accounting implications related to a donor’s use of a donor-advised fund to service a pledge. According to the National Philanthropic Trust’s 2017 Donor-Advised Fund Report, there were approximately 285,000 individual donor-advised funds (DAFs) in 2016 with aggregate charitable assets of $85 billion.

Understanding and managing 2018’s key risks
RSM’s recent 2018 economic and risk webcast analyzed emerging economic and risk trends, and detailed four specific risks that your company will likely face this year. This infographic summarizes the webcast to help you understand new innovation, automation, cybersecurity, and data privacy risks and potential management responses.

Planned giving strategies: Strategies, tactics and tools
Once a nonprofit understands the charitable visions of its donors, it’s time to discuss strategies that will help the organization accomplish its goals.

On demand: Annual nonprofit accounting update webcast
Miss our webcast on Thursday, April 19? View the annual accounting update on demand, answer polling questions and complete the final exam to be eligible for CPE credit for this course.

Source: RSM US LLP
Used with permission as a member of the RSM US Alliance
http://rsmus.com/our-insights/newsletters/muse.html

At Insero, we make it our business to stay abreast of the latest trends and technical updates in accounting, tax, and audit and we understand how important timely updates are to our clients. As a member of the RSM US Alliance, we also have the benefit of access to the resources and subject matter experts of RSM US LLP (formerly known as McGladrey LLP). This includes regular updates on the latest insights for non-profit organizations.

Non-Profit Update: March/April 2018

Nonprofit tax reform resource center
The recently enacted Tax Cuts and Jobs Act has produced widespread tax law changes for exempt organizations. Learn more about the latest updates in our resource center.

Important fringe benefit changes for exempt organizations
Certain fringe benefits now required to be included in exempt organizations’ unrelated business income subject to tax.

Planned giving strategies: The conversation that makes the difference
By discovering what matters most to the individual, nonprofits can uncover a donor’s passion and connection to the organization.

Annual nonprofit accounting update webcast
Join us on Thursday, April 19, for an informational session to discuss the latest accounting updates and issues that could affect nonprofit organizations.

Source: RSM US LLP
Used with permission as a member of the RSM US Alliance
http://rsmus.com/our-insights/newsletters/muse.html

At Insero, we make it our business to stay abreast of the latest trends and technical updates in accounting, tax, and audit and we understand how important timely updates are to our clients. As a member of the RSM US Alliance, we also have the benefit of access to the resources and subject matter experts of RSM US LLP (formerly known as McGladrey LLP). This includes regular updates on the latest insights for non-profit organizations.

Not-for-Profit Update: January/February 2018

At Insero, we make it our business to stay abreast of the latest trends and technical updates in accounting, tax, and audit and we understand how important timely updates are to our clients. As a member of the RSM US Alliance, we also have the benefit of access to the resources and subject matter experts of RSM US LLP (formerly known as McGladrey LLP). This includes regular updates on the latest insights for not-for-profit organizations. We hope that you find these informative and useful, and invite you to reach out to us if you have any questions.

Nonprofit tax reform resource center
The recently enacted Tax Cuts and Jobs Act has produced widespread tax law changes for exempt organizations. Learn more about the latest updates in our resource center.

IT risk management for nonprofits: Securing your technology and data
Nonprofit organizations must understand how to implement strategies to protect technology and information assets.

IRS offers guidance on certain distribution from donor advised funds
The Treasury Department and the IRS are considering developing proposed regulations under section 4967 of the IRC.

What your nonprofit board members need to know about Form 990
A two-part white paper series to help board members develop a better understanding of why the IRS asks for the information contained in the Form 990.

The top 5 things nonprofits should expect from an outsourcing provider
Nonprofits need outsourcing providers who can not only help build a strategy for the future and help implement that strategy, but who can adjust and grow as your mission expands.

Source: RSM US LLP
Used with permission as a member of the RSM US Alliance
http://rsmus.com/our-insights/newsletters/muse.html

Not-for-Profit Update: November/December 2017

At Insero, we make it our business to stay abreast of the latest trends and technical updates in accounting, tax, and audit and we understand how important timely updates are to our clients. As a member of the RSM US Alliance, we also have the benefit of access to the resources and subject matter experts of RSM US LLP (formerly known as McGladrey LLP). This includes regular updates on the latest insights for not-for-profit organizations. We hope that you find these informative and useful, and invite you to reach out to us if you have any questions.

Exempt organization-specific provisions in the House Bill H.R. 1
The tax reform legislative process was formally kicked off Nov. 2, 2017, with the release of H.R. 1, the Tax Cuts and Jobs Act.
Read more

Going global: How to plan strategy and building local relationships
Nonprofit organizations can successfully expand operations around the world with strategic planning and cultivation of local relationships.
Read more

Nonprofit webcast series: Optimizing your nonprofit’s outsourcing strategy
Join us for this informative two-part webcast series as we discuss the importance of evaluating whether your outsourcing provider’s capabilities are meeting your needs and expectations.
Register now

On-demand webcast: Annual tax update for nonprofit organizations
Miss our webcast on Tuesday, Oct. 31? View the annual tax update on-demand, answer polling questions and complete the final exam to be eligible for CPE credit for this course.
View on demand now

Source: RSM US LLP
Used with permission as a member of the RSM US Alliance
http://rsmus.com/our-insights/newsletters/muse.html

Not-for-Profit Update: September/October 2017

At Insero, we make it our business to stay abreast of the latest trends and technical updates in accounting, tax, and audit and we understand how important timely updates are to our clients. As a member of the RSM US Alliance, we also have the benefit of access to the resources and subject matter experts of RSM US LLP (formerly known as McGladrey LLP). This includes regular updates on the latest insights for not-for-profit organizations. We hope that you find these informative and useful, and invite you to reach out to us if you have any questions.

What your nonprofit board members need to know about Form 990
The first in a two-part series to help board members develop a better understanding of why the IRS asks for the information contained in the Form 990.
Read more

5 things to know about managing third-party relationship risks
Enforcement is scheduled to start on May 25, 2018. What do U.S. organizations need to do now? Here are five key considerations.
Read more

Do you know how managed IT services can help overcome your challenges?
A managed IT services agreement can provide peace of mind that you are making technology decisions to align with your strategy and goals.
Read more

Source: RSM US LLP
Used with permission as a member of the RSM US Alliance
http://rsmus.com/our-insights/newsletters/muse.html