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AICPA’s Technical Q&A 6140.26 Published

Discussing the election of goodwill amortization as allowed by Accounting Standards Update (ASU) No. 2014-02, the American Institute of Certified Public Accountants’ (“AICPA”) Not-for-Profit Entities Expert Panel has issued Technical Question and Answer (Technical Q&A) Section 6140.26, Not-for-Profit Entity with For-Profit Subsidiary and Adoption of FASB ASU 2014-02 on Goodwill. A result of the work of the Private Company Council, ASU No. 2014-02 provides for-profit, private companies an accounting alternative to amortize goodwill in lieu of annual impairment testing. The TIS considered nonprofits that consolidate for profit entities. Since the accounting alternative is not permissible to nonprofit companies, Technical Q&A. Read More.

IRS Ordered to Release Form 990 in Digital Formats

A judge last week has ordered the Internal Revenue Service (“IRS”) to comply with founder Carl Malamud’s request of releasing Form 990 for nonprofits in digital and electronic formats. Filed under the Freedom of Information Act (FOIA), Malamud stated that the formats available on the IRS website were complex. Conversely, the IRS argued scanned versions of Form 990 were sufficient enough, and the agency was unable to fund a format change. The judge, however, sided with Malamud and stated, “The fact that an agency may be under significant financial distress because it is underfunded does not excuse an agency’s. Read More.

IRS Issues Section 501(r) Final Regulations

On December 29th, the Internal Revenue Service (“IRS”) released its final regulations under Section 501(r) of the Internal Revenue Code. Imposed as part of the Patient Protection and Affordable Care Act, the final regulations of Section 501(r) include requirements that impact charitable tax-exempt hospitals. Per the new requirements, charitable tax-exempt hospitals must: perform a community health needs evaluation every three years; create policies on financial assistance and emergency care; and impose limitations on billing and collection actions. Additionally, Section 501(r)’s final regulations address comments made in regard to related notices, and provide charitable tax-exempt hospitals more flexibility for meeting compliance. Read More.

Committee Report Discusses IRS Treatment of Tax-Exempt Applicants

The Committee on Oversight and Government Reform (“the Committee”) has issued a report concerning allegations that the Internal Revenue Service (“IRS”) intentionally targeted the tax-exempt applications of conservative nonprofit groups. Released on December 23rd, The Internal Revenue Service’s Targeting of Conservative Tax-Exempt Applicants: Report of Findings for the 113th Congress features over 1.3 million pages of review documents, and the transcripts of interviews from numerous IRS, Treasury and Justice Department employees. To view the report , visit the Committee’s website. Also check out Cherry Bekaert’s Nonprofits and Education industry pages to discover how our Firm can guide you forward in. Read More.

Recent Reports Discuss General Operating Support

With nonprofits organizing their 2015 fundraising objectives, reports reveal donors are reluctant to fund the general operations of such organizations. While nonprofits have countered by publicly disclosing the full costs and expenses necessary for providing services to local communities, the recent Grantmakers for Effective Organizations survey said that 81 percent of grant makers distributed general operating support grants as part of their donations. Of that group, 25 percent of their grant dollars supported a nonprofit’s operating expenses. That percentage marks a five percent jump from three years ago. Conversely, The Fall 2014 State of Grantseeking Report by The Foundation Center indicated fewer dollars and grants were allocated to general operating support in. Read More.

North Carolina County Residents to Evaluate Nonprofit’s Performance

Using a different approach to the nonprofit contracting selection process, commissioners in Buncombe County, North Carolina, have shifted public accountability to local citizens. Once the local government selects a nonprofit to serve the community, the organization is awarded a one-year performance-based contract. Next, commissioners employ a citizen-led group to monitor the nonprofit. The watchdog group then decides whether the objectives listed within the contract have been reached, and reports all findings to the County Commission. Upon review of the report, commissioners decide whether or not the contract is terminated or renewed. For more information on Buncombe County’s practice or to. Read More.