Coronavirus Strikes Nonprofits in More Ways Than One

The rapid spread of COVID-19 around the world has impacted all sectors. The nonprofit industry is no exception—in fact, they face more challenges than most. This article outlines a few tips nonprofit organizations can use to minimize the risks associated with coronavirus. 

Tips for Fine Tuning Your Budget Process

Does your nonprofit budget paint a clear picture of what your nonprofit plans to accomplish in the upcoming year? Here are some factors to consider when building your budget for the upcoming year, including setting goals, board involvement, and formatting.

Top 10 Trends in the Nonprofit Industry

Nonprofit organizations are currently living in a booming industry with multiple factors affecting their daily operations. There are different approaches to measure how successful nonprofit organizations can run their businesses compared to their counterparts in a similar field, with some costing more than others. The article below lists out the top 10 trends that will benefit the nonprofit industry, these factors should be carefully considered for organizations to keep up with the current changes. 

New and Improved Amortizing of Goodwill for Nonprofits

FASB has given NFP’s the option to use private company treatment of goodwill. This means that NFP’s can elect to Amortize goodwill over a 10 year period (or less if the entity can justify the accelerated schedule). If NFP’s elect this method, they get the benefit of only having to test for impairment of goodwill during “triggering events” as opposed to annually. This saves NFP’s both time and money as goodwill impairment tests usually require the contracting of a specialist.

functional expenses

Lessons Learned from Implementing ASU 2016-14 – Functional Expenses

In August 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update 2016-14 (ASU 2016-14) with the stated purpose of improving financial reporting by not-for-profit entities (NFP). The update is effective for annual financial statements issued for fiscal years beginning after December 15, 2017. One area has presented challenges to nonprofits is the presentation of the analysis of expenses by function and natural classifications. This article provides some great guidance on options available under the ASU for the presentation of expenses.