accounting

Who is reading your 990?

Reading through a new clients 990 helps me get an idea of the work they do and what the financial picture of the organization looks like. It's important to take time in preparing the 990 so it includes an accurate picture for readers, of the organizations programs and accomplishments.

Don't wait until the last minute to prepare and review your organizations return! The next due date for 6/30 fiscal year is February 15th.

Here is a good read from Journal of Accountancy on the importance of "Telling the not-for-profit story through Form 990"

Upcoming changes to nonprofit accounting standards

For the first time in 22 years FASB is making changes to the nonprofit accounting standards. These changes must be implemented with years beginning in 2018. This is only one year from now, so organizations should begin to strategize how these changes will impact the organization.

These are the four major changes:

  1. Net asset classification will now be "with donor restrictions" or "without donor restrictions". The previously used "unrestricted", "temporarily restricted", and "permanently restricted" classifications will no longer be allowed.
  2. All nonprofit organizations will be required to present expenses by function and nature. Previously this was only mandatory for health and welfare organizations.
  3. Qualitative and Quantitative disclosure regarding liquidity of assets, and the availability of assets to meet the cash needs for general expenses one year out.
  4. Investment expenses must be netted against investment revenues, instead of being show separately in expenses.

Here are a few articles with additional information