The Blue Book Manual Discontinued
The Department of Education announced this week it will no longer publish The Blue Book, its guide on accounting, recordkeeping and reporting for federal student aid programs. In recent years, The Blue Book has been scarcely updated, including an eight-year gap between the past two editions. Most of the guide’s content is now part of the Federal Student Aid Handbook. For the full scoop on the manual’s discontinuation, please visit the National Association of College and University Business Officers website.
Cherry Bekaert Responds to Proposal for Nonprofit Financial Statements
Recently, Cherry Bekaert responded to the Financial Accounting Standards Board (“FASB”) Exposure Draft, proposed Accounting Standard Update No. 2015-230, Not-for-Profit Entities (Topic 958) and Health Care Entities (Topic 954): Presentation of Financial Statements of Not-for-Profit Entities. To keep our clients informed of new developments, we held two webinars regarding the Exposure Draft, which received over 300 registered participants. Following the webinar, we offered our clients the opportunity to provide us feedback on the Exposure Draft through a survey. In addition, we incorporated the comments from our survey respondents into the Firm’s response to the questions raised in the Exposure Draft.. Read More.
North Carolina Addresses Nonprofit Tax Challenges
Recent efforts by North Carolina lawmakers reflect the ongoing tax challenges affecting nonprofit communities around the country. Joining Kansas and Vermont in rejecting efforts to curtail state tax incentives, the North Carolina Senate tax-writing committee has approved the removal of two provisions from a bill that would have slashed the sales tax exemption for nonprofits and added charitable contributions to a restriction on itemized deductions. The decision is opposite of what the Maine Legislature did this year, which added charitable donations to an existing limit on itemized deductions. Maine legislators, however, rejected multiple attempts to cut property tax exemptions for. Read More.
New York Upholds Donor Disclosure Requirement
After Citizens United attempted to block the New York Attorney General Eric Schneiderman’s policy requiring nonprofit organizations to reveal the names of their donors, the U.S. District Court for the Southern District of New York has sided with Schneiderman. According to the ruling filed July 27th , if a registered charity chooses to fundraise in the state of New York, the names, addresses and contributions of their major donors must be disclosed to the Attorney General’s office. The New York ruling reflects recent legislative efforts requiring social welfare nonprofit groups under federal tax code section 501(c)(4) to provide more transparency for how their activities. Read More.
Nonprofit Workers Impacted by Proposed Overtime Changes
Discussed in Cherry Bekaert’s Benefits Consulting’s recent Compensation & Human Capital Consulting Update , the U.S. Department of Labor (“DOL”) has proposed rules that expand current overtime protections. Affecting nonprofit, for-profit and government workers, the draft regulations propose nearly doubling white-collar employees’ minimum salary level, from $23,660 to $50,400, to receive exemption from overtime pay. The DOL also proposes increasing the minimum salary threshold for “highly compensated employees”, from $100,000 to over $120,000, and seeking feedback regarding whether an automated method for future salary level increases should be established. Comments on the proposed regulations are due Friday, September 4th. In the meantime, the National Council of. Read More.
Notre Dame Professor Says Nonprofits Have Higher Accounting Errors
When it comes to which organizations commit the most accounting errors, a recent study by Jeffrey Burks suggests that nonprofits are leading the pack. According to the University of Notre Dame professor, the amount of accounting errors at nonprofit organizations is nearly twice the number of for-profit companies of similar sizes. Observing that all sizes of nonprofit organizations tend to have high accounting errors, Burks said, “The clients of the largest eight audit firms in the country have a significantly lower rate of errors. The clients of these large audit firms tend to be large nonprofits, but the effect does. Read More.