Charitable nonprofit organizations generally aren’t required to conduct independent audits. Certain circumstance, however, could trigger an independent audit. Many groups, such as the following, rate nonprofits and offer guidelines on when audits should be obtained: These groups are not regulating authorities, but they attempt to influence nonprofit practice and how the general public evaluates potential […]
Tag: nonprofit accounting
How Nonprofits Should Handle Tax Form 990
Form 990, Return of Organization Exempt From Income Tax, is the IRS’ method of evaluation to make sure your nonprofit is financially honest and legitimate. The form is required for tax-exempt organizations to file each year to remain compliant with the regulations and requirements set by the IRS. Form 990 requires expenses to be separated […]
How to Handle Grants
Requests for transparency and accountability keep growing with the demands that contributions be used as intended. You need to track and report on segregated accounts, treating funds as separate entities with their own general ledgers. More than 20 years ago, the Financial Accounting Standards Board issued two standards that established reporting requirements for NPOs: FAS […]
How to Get the Help You Need
At many nonprofits, managers may be spending much time trying to decide if it’s worth the money to engage a CPA firm to help the organization with its finances. After all, resources are often very limited at nonprofits. However, managers would do well to consider all the advantages—indeed, an accounting firm may pay for itself […]
Tax and Nonprofit: The Strict Requirements
Nonprofit accounting may seem overwhelming at times, but it becomes easier once you begin to understand how finances function and move within your organization. By using this info, you can implement best practices for effective accounting decisions. With the right accounting practices, you can be compliant and transparent, creating reports that let donors see how […]