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.

New Proposed Regulations for Opportunity Zones

The IRS just released a new set of proposed regulations on April 17, 2019 regarding investments in Opportunity Zones. The newly minted Section 1400Z-2 of the IRC allows for deferral of capital gains if they are subsequently invested in a designated “Opportunity Zone” and these proposed regulations provide additional guidance for taxpayers on how to decipher the code.

What We Can Learn From the Newest Salary Trends in Construction

At the beginning of 2019 Harris CPAs, in conjunction with CICPAC and PAS, Inc., published a survey reporting the 2018 national salary levels for 3 key positions in the construction industry. The salaries for these positions, which were Senior Project Managers, Senior Estimators, and Controllers, were further categorized by revenue thresholds for the companies surveyed. Finally, mean and median averages were calculated/identified for each revenue category.