Audits have become more important due to increased public and government scrutiny of not-for-profit organizations, their management and their boards. Audits not only provide you with a fair assessment of your organization's financial health, but also can reveal vulnerabilities such as weak internal controls, insufficient cash reserves and poor investment policies. Perhaps most important, regular audits reassure your donors, members and other stakeholders that you run a fit organization.
In the News
Thursday, November 19, 2020
Thursday, November 5, 2020
Many not-for-profit organizations have discovered there can be strength in numbers. In recent years, there has been an increase in the number of collaborations, partnerships and even full-scale mergers in the not-for-profit sector. These joint ventures can conserve resources, help with fundraising and, in many cases, expand the services that each group provides.
Thursday, October 22, 2020
Is your not-for-profit the same organization it was three years ago? Are your stakeholders the same now as then? Is your community and its support of your not-for-profit the same?
Thursday, October 8, 2020
In one not-for-profit article, we described why your organization needs to keep accurate records and how a good recordkeeping system can help prove that you are complying with various laws.
Thursday, September 24, 2020
Think of your not-for-profit organization and its external auditor as dance partners performing a well-choreographed routine. To execute the dance properly, each dancer must complete specific moves and coordinate timing with his or her partner. Likewise, your organization and its audit firm each have particular duties in the audit process but share the same end goal: a set of financial statements that fairly present your financial condition and operating results.
Thursday, September 10, 2020
This is one of those Believe It or Not stories: Years ago, a charity generated solicitation letters from a computerized database. One letter addressed to a state Humane Society stated: "Dear Miss Society."
Thursday, August 27, 2020
Not-for-profit organizations often struggle with valuing non-cash and in-kind donations, including the value of houses and other real estate. Whether for recordkeeping purposes or when helping donors understand proper valuation for their charitable tax deductions, the task isn't easy.
Thursday, August 13, 2020
Q. Our organization is a 501(c)(3) not-for-profit organization that relies on volunteers. Sometimes our volunteers incur significant transportation and other expenses in connection with the performance of their volunteer services. We would like to pay for some of those expenses, either directly or by reimbursement, to relieve their financial burden. If we do, would the expense payments be treated as taxable income, or would the payments be excluded from income — as they are when our employees incur similar expenses?
Thursday, July 30, 2020
Maintaining detailed time records for staff may not be your favorite task. Unfortunately, it's not negotiable. Timekeeping — for volunteers and individuals paid for their work — is necessary for most not-for-profit organizations. However, there are ways to make the job less onerous.
Thursday, July 16, 2020
Does your organization have a succession plan in place? And, if it does, is it well documented? Some not-for-profits delay detailed succession planning, thinking of it as a project they'll get to "someday." But that's a mistake.