Capitalization Policy for Nonprofits

Posted By: Amanda Cox Nonprofit organizations have two options when purchasing assets with a useful life of greater than one year: expense or capitalize. Assets which are capitalized are referred to as fixed assets and represent tangible property and equipment with a useful life of more than a year (except collection items and assets held for investment purposes) that meet … Continued

New Presentation and Disclosure Requirements for Gift-In-Kind (ASU 2020-07)

Posted By: Casey Hagy, CPA In September 2020, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2020-07: Presentation and Disclosures by Not-for-Profit Entities for Contributed Nonfinancial Assets. The purpose of this ASU is to increase the transparency of contributed nonfinancial assets through enhancements to presentation and disclosure. This ASU applies to all nonprofits that receive contributed nonfinancial … Continued

How the Mail Backlog at the IRS May Impact Your Tax-Exempt Organization

Posted By Christina Bell, CPA The IRS has an enormous backlog of unprocessed mail, which includes paper returns and extensions, due to the closing of its processing centers for several weeks during the pandemic and then re-opening them with limited staff. This backlog of unprocessed mail has caused many Organizations to receive erroneous computer generated tax notices from the IRS … Continued

How to Utilize P-EBT Cards to Help the Nonprofit Community

Posted By Christina Bell, CPA This week I received a letter in the mail stating my family was automatically enrolled to receive benefits under Delaware’s Pandemic Electronic Transfer (P-EBT) program. Delaware’s P-EBT Program provides food assistance to families with children who lost access to free or reduced-price school meals due to school closures or reduced in-person attendance as a result … Continued

Charity Navigator: Encompass Rating System

Posted By Christina Bell, CPA Regardless of the individual mission, every nonprofit share a common goal: to raise awareness and funding to propel its mission forward. And, when prospective donors are determining what charity is most deserving of their various resources, there is perhaps no better asset than Charity Navigator. Charity Navigator, the world’s largest and most-utilized independent nonprofit evaluator, … Continued

Single Audit Submission Extension

Posted by Matthew Frost In March of 2020, we discussed M-20-17, Administrative Relief for Recipients and Applicants of Federal Financial Assistance Directly Impacted by the Novel Coronavirus (COVID-19) due to Loss of Operations in our blog titled, COVID-19 Relief: Single Audit Extension. The good news is a similar extension has been granted for 2021. On March 19, 2021, the U.S. … Continued

Delaware Relief Grants

Originally Posted August 20, 2020 / Updated August 25, 2020 Posted by Casey Hagy, CPA    The State of Delaware and New Castle County are working together to provide further relief to Delaware nonprofits and small businesses who have been impacted by the COVID-19 pandemic. They recently announced new funding through the means of “DE Relief Grants.” Funding for this … Continued

CARES Act Opportunities for Nonprofits

Posted By Jonathan D. Moll, CPA Many nonprofit organizations are facing an uphill climb managing the financial challenges brought about by the COVID-19 pandemic. There have been several adjustments made to employee expenses, programs delivered, services offered, and fundraising. A recent study from the Charities Aid Foundation of America found that up to a third of nonprofits could close within … Continued

When Does a Nonprofit’s PPP Loan Convert from a Liability to Revenue?

Posted by Jonathan D. Moll, CPA Accounting for PPP Loans: When does a Nonprofit’s PPP Loan Convert from a Liability to Revenue? With the introduction of the CARES Act, our firm created a library of resources, mostly focused on the Paycheck Protection Program (PPP), to help entities, including nonprofit organizations, navigate the post-pandemic environment. However, lacking within the sea of … Continued

FASB Votes to Postpone Revenue Recognition & Leases Standards

Posted by Christina K. Bell, CPA On May 20, 2020, FASB voted to extend by one year the effective date of its revenue recognition standard (FASB ASC Topic 606, Revenue From Contracts With Customers) to all nonpublic entities that have not yet issued their financial statements. “They [private companies] may not have the technology or resources to effectively implement the … Continued