CPAs and Advisors with Your Growth in Mind


Consultant Asks Nonprofits to be Wary of Strategic Planning

In a blog post this week, nonprofit consultant Erik Anderson expressed his thoughts on the drawbacks of strategic planning. Referencing a white paper issued by The Nonprofit Center at La Salle University’s School of Business, Anderson suggested when nonprofits should not utilize strategic planning. Such situations include the onset of a financial crisis, when a nonprofit’s board believes the executive director isn’t right for the organization, ongoing tension and a persistent “we don’t do it that way” attitude. In response, Anderson advised those considering strategic planning to incorporate top stakeholders in discussions, research about different planning models and hire an. Read More.


Nonprofits Advised to Think Outside the Box

In a May blog on The Huffington Post, development professional Joseph Amodeo shared his thoughts on nonprofits’ efforts to stand out among other fundraising organizations. According to Amodeo, many nonprofits have not strayed from their overall mission but have shifted fundraising approaches to reflect social investment. Amodeo also offered ideas to nonprofits, such as emphasizing the impact of the investment and creating an environment that promotes innovation among organization board members and staff. For Amodeo’s complete blog on nonprofits, visit The Huffington Post’s website. Also, don’t forget to check out Cherry Bekaert’s Nonprofits industry page.

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Tax Debt Growing Among Tax-Exempt Groups

Based on an audit by the U.S. Department of Treasury’s inspector general for tax administration, debt among 64,000 tax-exempt groups was estimated at $875 million for 2012. While the organizations do not pay income taxes, many are in the hole over payroll tax liabilities. Additionally, despite most groups reporting a small amount that they owe, 25 groups with the biggest tax liabilities received $148 million over a three-year period from the government. For the full story on tax-exempt groups’ debt, visit The Hill’s website. Also check out our Education and Nonprofit pages to learn more about the Firm’s industry services.

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New Form 1023-EZ Issued by the IRS

Providing a new streamlined process for smaller organizations, the Internal Revenue Service (“IRS”) Exempt Organizations Division has released a shorter, easy-to-use tax-exempt application form. The application, Form 1023-EZ, Streamlined Application for Recognition of Exemption Under Section 501(c)(3) of the Internal Revenue Code, reduces the IRS’ workload by focusing on information essential to determining an organization’s exempt status and lowering application backlog. Due to the simplified form, it is anticipated that up to 70 percent of applicants will qualify for the tax exemption. For the full story on Form 1023-EZ , check out the American Institute of Certified Public Accountants’ blog. To learn about Cherry Bekaert’s. Read More.

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Nonprofits Slow to Implement Enterprise Risk Management

Based on a recent survey by the North Carolina State University’s ERM Initiative for the American Institute of CPAs, only 13 percent of nonprofits have implemented a formal enterprise risk management (ERM) process. Conversely, 52 percent of public companies and 43 percent of financial services companies surveyed have employed an ERM. Addressing the low rate at a nonprofit conference last month, WeiserMazars consulting partner Bob Cummings identified six ways nonprofits can execute and maintain ERM: Have a risk management governance structure; Follow a risk management framework; Continuously identify risk and the risk event universe; Create and manage a risk profile;. Read More.

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