Tracking Federal Grants

When a nonprofit is allocated grant money, every penny must be carefully documented. There are many rules and regulations about how to spend the money granted. It is crucial to meticulously track just how and where every penny is spent. …

Key Players in the Auditing Process

Going through an audit can be a stressful undertaking for a nonprofit organization. It is necessary to have an audit performed by an external auditor every fiscal year. In addition to the external auditor, there are other people involved in …

Who's Interested in Nonprofit Audits

The word audit often conjures up negative and fearful emotions. However, an audit doesn’t have to be daunting. In fact, an audit is simply an evaluation of the organization’s accounting systems to verify the accuracy of its financial data. If …

Who’s Interested in Nonprofit Audits

The word audit often conjures up negative and fearful emotions. However, an audit doesn’t have to be daunting. In fact, an audit is simply an evaluation of the organization’s accounting systems to verify the accuracy of its financial data. If …

Nonprofit GAAP Principles

Not only are nonprofits obligated to follow the Federal Accounting Standards Bureau’s (FASB) guidelines but they must use the Generally Accepted Accounting Principles (GAAP) to do so. GAAP functions like the ground rules for accounting. it creates a consistent way …

FASB No. 117: Financial Statements for Nonprofits

The Financial Accounting Standards Board (FASB) is the the authoritative entity that governs over the guidelines for accounting. They dictate the principles to follow so that every nonprofit’s statements can be understood on an equal plane. FASB Statement No. 117 …

FASB No. 116 for Nonprofits

In order for a nonprofit organization to maintain good standing with the IRS and the community, it must follow the rules governing the accounting and reporting for nonprofits.  The FASB is the entity that sets these standards. The state or …

Fraudulent Tax Returns Are Costing Americans

Most Americans are concerned about the nation being trillions of dollars in debt. But what about the $6.5 billion we lost in 2010 due to fraudulent tax returns? Criminals are filing fraudulent tax returns before the real taxpayer. The result …

Tax Cuts of the Bush Era

Tax cuts for the wealthy were introduced in 2001 and 2003 during the George W. Bush era. Although Republicans were hopeful these tax cuts would become a permanent part of American law, they were set to expire in 2010. When …

Staying in Compliance with the Non-Profit Status

There are certain rules and regulations a non-profit organization must adhere to in order to maintain its non-profit status. The IRS has the power to give or take away this status. It is essential to have a detailed awareness of …