Know the Right Way to Report Donations of Services

Posted by Jonathan D. Moll, CPA Donations of services can be useful to your organization during tough economic times. But should you record them in your financial statements? And, if so, what amounts should you assign? FASB Accounting Standards Codification (ASC) 958, Not-for-Profit Entities, specifies when a nonprofit should recognize the fair value of services in its financial statements. There are two … Continued

The Risk of Not Honoring Donor Restrictions

Posted by Jonathan D. Moll, CPA If you’re a nonprofit organization that receives donor-restricted contributions, you might want to think twice about spending those restricted funds for purposes other than what the donor stipulated. An Oklahoma hospital that failed to build a women’s health center in honor of country singer Garth Brooks’ late mother must pay the country singer $1 … Continued

I Have a Question – What Accounting Issues Are Troubling You?

Posted By Jonathan D. Moll, CPA I am constantly reminded of a conversation I had with a “well-seasoned” CPA that I had briefly met at an industry conference. The seminar was leading up to the implementation of SAS 112. The underlying message being stressed was that, in order to avoid a potentially negative management letter, there was a need to … Continued

They Weren’t Bluffing – The IRS Auto-Revocation of Exemption List Is Official

Posted By Jonathan D. Moll, CPA In poker, the “bluff” is an effective strategic play.  In nonprofit tax compliance … that is not the case. In 2006 Congress passed the Pension Protection Act requiring most tax-exempt organizations to file an annual information return or notice with the IRS. This week, the Internal Revenue Service released a listing of approximately 275,000 … Continued

Accounting for Agency Transactions

Posted by Jonathan D. Moll, CPA This past Saturday my wife sent me on a chore that I initially referred to as “Mission Impossible.” The Mission: Successfully purchase a birthday gift for our niece’s 1st birthday at a local toy store with my 4-year old son and 3-year old daughter…with no melt-downs. The idea of explaining to my children that they would have no vested interest in … Continued

Why Nonprofits Should be Paying Attention to the Blue Ribbon Panel

Posted By Jonathan D. Moll, CPA The Blue Ribbon Panel on Standard Setting for Private Companies – I know, it’s a mouthful. And unless you’re in the small (but extremely gifted) portion of the population that perceives all of life’s moments as a series of debits and credits, I probably lost you after “Standard”. But this is kind of a … Continued

A Little Help from “Our Friend”

Posted By Jonathan D. Moll, CPA If the IRS’s New Year’s Resolution was to be a little kinder to the tax-exempt community in 2011, they’ve gotten off to a decent start. In a revenue procedure late last week (IRS Rev. Proc. 2011-15), the IRS raised the gross receipts threshold at which most tax-exempt organizations are required to file Form 990 … Continued