What can $100 provide for a donor-based not-for-profit? Not as much as it used to, according to the newest Giving USA Foundation report. The annual report on philanthropy is the longest-running report on the sources and uses of charitable giving in America. And while the report showed that giving was up in 2023 compared to
Adapting to Shifting Giving Trends The recently released Giving USA report paints a concerning picture for the nonprofit sector, with total charitable giving in the U.S. declining by 3.4% in 2022. This drop comes on the heels of record-breaking pandemic-era generosity, leaving many nonprofits struggling to maintain critical services. However, this shift also presents an
Whether your organization experiences cash flow issues, economic repercussions or fraud, there are steps you can take to navigate a potential financial crisis. A good first step is to contact your CPA. Your team should be available for you beyond an audit or tax filing. This article provides tips on planning and risk management to
Tax credits are far more valuable to businesses than tax deductions because they reduce your business tax liability dollar for dollar. For businesses, the aggregate value of tax credits may be limited by the general business credit (GBC), found in Internal Revenue Service Code Section 38. To identify more tax-saving opportunities for your business this
Measuring the success of your not-for-profit organization through key performance indicators (KPIs) can be confusing and time-consuming, especially when there are hundreds of metrics to choose from. It is important to choose meaningful KPIs that reflect your mission, growth goals and stakeholder expectations. In addition, you will need to establish a baseline metric for each
The nonprofit sector now employs nearly 10 million people and accounts for over 7 percent of U.S. national income, according to a recent article in the Society for Nonprofit Organizations magazine, Nonprofit World. In the last decade, leaders have shifted to a more entrepreneurial mindset through marketing, revenue diversification, collaborative partnerships and improved technology. This
With national housing at a crisis level, underproducing millions of units annually, public and private partnerships are getting more creative about how to solve this puzzle across the country. Traditional sources of government funding are limited, traditional lending is expensive and institutional investors are pulling back from housing investment. Now, developers and new funders are
After a short Internet search, it is easy to find a handful of sites dedicated to small business resources in California. To make it even easier, this article summarizes each site and what small business owners can find for financing and business planning support in California. California has relatively high taxes and a high cost
With the passage of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, 501(c)3 non-profit organizations and 501(c)19 veterans’ organizations with 500 or fewer employees (or that meet SBA size industry standards) were able to apply for emergency relief. Part of that relief came in the form of potentially forgivable loans through the U.S. Small
Nonprofits have multiple stakeholders with varying needs and preferences for communication. Board members need consistent communication to focus on strategy and fiscal stewardship. Donors or members want updates on programming and activities, getting a sense that their investment in the organization is worthwhile. In some cases, there are also public and government stakeholders that
You may have had a “good” audit, but there is always room for improvement. Use what you’ve learned to your advantage by making improvements in your processes and controls throughout the year. When in doubt, ask your audit team! 1. Don’t wait Don’t wait until your next audit for audit planning. Reach out to your
There are many ways that not-for-profit organizations can finance their mission. Some of the following vehicles are very common: SBA loans and grants Nonprofit loan funds and grants Community development financing Bank or credit union loans and lines of credit Donor development and crowdfunding Donations and grants are the first line of defense in an
Congress’ recent spending package offers an increased $4.5 billion to HUD for fiscal year 2023, including a “Yes in My Backyard” (YIMBY) grant program and increased funding for several existing programs. This news may or may not ease concerns among developers about significant project cost increases and funding gaps. A recent article in Affordable Housing
We frequently get questions from affordable housing managers regarding the reconciliation of intercompany accounts and confirmation of balances between business units. Intercompany transactions are not unusual for developers with multiple properties, but they can result in misstatements on the balance sheet without proper internal controls. During the planning phase of an audit, we often identify
For older multi-family housing properties that need rehabilitation beyond what is possible with replacement reserves, developers will seek outside investors interested in tax credits. Introducing Resyndication New private equity players are assembling funds to support these projects and preserve affordable housing, but the project must be large enough to make it worth their investment. Resyndication
Developers in underserved communities will have access to federal passthrough state grants to lower installation costs of broadband internet in new developments and existing multi-family properties. The grants will help finance delivery of free Wi-Fi access to residents. Part of the $1.2 trillion Infrastructure Investment and Jobs Act (IIJA), the Broadband Equity, Access, and Deployment Program
For many not-for-profits, federal funding is vital for sustaining programming and operations. However, the funding could carry requirements for compliance and financial reporting. For example, if a not-for-profit entity expends $750,000 or more in federal funds in its fiscal year, this will trigger the requirement for a single audit under the Uniform Guidance for testing
Over the coming months, the U.S. Department of the Treasury (Treasury) is conducting webinars and briefings with states, local governments and nonprofit and private sector entities to discuss how State and Local Fiscal Recovery Funds (SLFRF) can be used to expand affordable housing supply. They have also published a how-to guide. New guidance clarifies how
Although changing audit firms can seem difficult, California’s regional centers must do it every five years. California’s legislature enacted the Welfare and Institutions Code (“WIC” section 4639), in 2011, which states that regional centers shall not use the same accounting firm more than five times in every 10-year period. After management publishes their request for
Board members have a fiduciary duty as stewards of public trust to act in the best interests of the organization that they serve. They lay aside personal interests to focus on ethical oversight of the organization’s mission accomplishments, results of operations and financial position. Nonprofit board members may monitor support and other funding to ensure
The Paycheck Protection Program (PPP) created under the Coronavirus Aid, Relief, and Economic Security (CARES) Act provides loan funds to small businesses in order to help them pay eligible expenses (payroll costs, mortgage interest, rent, and utilities). These covered loans are to be fully forgiven and not to be treated as income to the loan
Nonprofits have a multitude of compliance standards to juggle, and constructing a comprehensive nonprofit purchasing policy is no exception. Maintaining tax-exempt status requires adherence to very specific behaviors, and written policy should be reviewed periodically to ensure your organization meets or exceeds standards. Under the new procurement standards, all NPOs receiving federal awards must have
S. Scott Seamands, partner at Lindquist von Husen & Joyce, LLP, and Julie Goldfine, COO/CFO at Mutual Housing California, revealed a risk identification matrix currently under development by our firm that serves as an information network for financial learning in the nonprofit affordable housing industry. After years of interviews and discussions with CFOs about their
Since the PATH Act in 2015, no major federal legislation has come about to address massive shortages in affordable housing across the U.S. While the House and Senate introduced many bills since then, legislation seems to die in committee or across the aisle. Much more legislation is enacted at the state level, but we know
An article last fall in the New York Times demonstrated what billions can and can’t do to bring about more affordable housing in a large metropolitan area. It can’t, for example, convince community groups to allow development in their neighborhoods or local government leaders to support it. Money alone also can’t ensure that a deal
As a result of COVID-19 and the disruption it is causing, FASB has issued an Accounting Standards Update (ASU) 2020-05, Revenue from Contracts with Customers (ASC 606) and Leases (ASC 842) Effective Dates for Certain Entities regarding deferral of effective dates for Revenue from Contracts with Customers and Leases. Revenue from Contracts with Customers
One of the challenges many not-for-profit organizations face is determining whether or not revenue falls under the category of a contribution or exchange transaction. In some cases, it’s a pretty straight forward determination, but the waters can occasionally become a bit murky. In June 2018, the Financial Accounting Standards Board (the FASB) issued the Accounting
The Small Business Administration (SBA) has issued a revised Form 3508, Paycheck Protection Program (PPP) Loan Forgiveness Application. The SBA also released a streamlined PPP Loan Forgiveness Application, Form 3508EZ. The newly issued application forms were needed to address the changes brought upon by the PPP Flexibility Act (PPPFA) of 2020. Form 3508EZ This new
The Paycheck Protection Program Flexibility Act (PPPFA) was signed into law on June 5, 2020, to modify certain provisions related to the forgiveness of loans under the Paycheck Protection Program (PPP). One change allows recipients of loan forgiveness under PPP to also defer a portion of 2020 payroll taxes, but there are several other modifications.
The Small Business Administration (SBA) has finally released the much-anticipated guidance on how borrowers can request forgiveness of their Paycheck Protection Program (PPP) loans. Borrowers will file SBA Form 3508, Paycheck Protection Program Loan Forgiveness Application. Form 3508 is an 11-page application with instructions that provide guidance on calculating the amount of loan forgiveness. The
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