The Tax Cuts and Job Act (the Act) was passed in December 2017. One change included in the Act may have significant impacts on nonprofit organizations in 2018. The Act expanded the definition of unrelated business taxable income (UBTI) to include qualified transportation benefits offered to employees. This means many nonprofit organizations that have historically […]
The Financial Accounting Standards Board (FASB) issued a Proposed Accounting Standards Update on “Clarifying the Scope and the Accounting Guidance for Contributions Received and Contributions Made.” The proposed update has two core objectives: 1. To assist organizations in evaluating whether a transaction is a contribution (nonreciprocal) or an exchange (reciprocal) transaction and 2. To assist […]
As we are approaching the last quarter of 2017 and many of our clients are preparing for their annual events, it is always good to keep in mind the IRS substantiation requirements for contributions. The IRS requires donors to have contemporaneous written acknowledgement from the non-profit organization for each charitable contribution that exceeds $250 in […]
The liquidity and availability disclose requirements in ASU 2016-14 will likely be the most challenging for nonprofit organizations to adopt because it asks for information that the nonprofit organization has not typically had to disclose. The required disclosures include: 1. Qualitative Information (description) – how the organization manages its liquid resources available to meet cash […]
The changes to the statement of cash flows in ASU 2016-14 are probably the easiest to implement. Organizations will continue to have the option to use the direct or indirect method of reporting cash flows from operating activities. However, the previous requirement to present an indirect reconciliation if the direct method is used has been […]
The third major change that is a part of ASU 2014-16 relates to expense reporting. The new standard will require all organizations to report expenses by both functional and natural classification in the same place on the financial statements. The standard provides a few options for the presentation: 1. Present a statement of functional expenses […]
The second major change in ASU 2016-14 relates to investment return. The new standard will standardize the reporting of investment return across all nonprofit entities. 1. All external and direct internal investment expenses will now be required to be netted against investment return on the statement of activities. 2. There will no longer be a […]
There is a major change on the horizon for nonprofit financial statements, are you ready? Last August, the Financial Accounting Standards Board (FASB) issued ASU 2016-14, Not-for-Profit Entities (Topic 958) – Presentation of Financial Statements of Not-for-Profit Entities. This is the first major change to the nonprofit financial statement model in over 20 years. It […]
Charity Navigator is the nation’s largest and most utilized evaluator of charities. They have developed a numbers-based rating system that assesses over 8,000 of the nation’s charities. Is your non-profit organization rated by Charity Navigator? Have you ever looked at your score? The score is based on two broad areas of your non-profit organization’s performance: […]
Squire, Lemkin + Company, LLP is a Rockville, MD accounting firm providing audit, tax, accounting and not-for-profit consulting services to companies across the East Coast. Our firm has expertise in not-for-profit Organizations, Entrepreneurial Businesses, Professional Service Firms, High Net Worth Individuals, Estates and Trusts, Employee Benefit Plans and Individual Tax Returns.
We serve clients from our office Rockville, MD. We serve the Maryland, Virginia and Washington, D.C. metropolitan area.