FASB Proposes Major Changes to Nonprofit Accounting
Earlier today, the Financial Accounting Standards Board (“FASB”) proposed the first significant changes to nonprofit accounting in 22 years. Introduced as Proposed Accounting Standards Update (ASU) No. 2015-230, Not-for-Profit Entities (Topic 958) and Health Care Entities (Topic 954): Presentation of Financial Statements of Not-for-Profit Entities, the proposal aims to improve financial reporting information that nonprofits provide benefactors, lenders, and regulators. ASU No. 2015-230 also includes requirement updates for the statement of financial position, the statement of activities and the cash flow statement, as well as changes to the rules for financial statement footnotes. Major changes include reducing the number of net asset. Read More.
List of Colleges under Cash Monitoring to be Released
After secretly keeping tabs on higher institutions that had their access to federal funding restricted, the Department of Education plans to reveal the names of those colleges and universities sometime next week. Notified of the upcoming release, the colleges under scrutiny faced “cash monitoring” due to elevated concerns about the risk they posed to students and taxpayers. According to information recently released by the Department of Education, 76 colleges faced the most severe form of cash monitoring at the end of October 2014. Meanwhile, as of August 2014, 455 higher institutions faced a lower level of scrutiny from the Department. Read More.
College Finance Officers Uncertain about Nonprofit Accounting Changes
As the Financial Accounting Standards Board (“FASB”) continues to overhaul its nonprofit accounting guidelines, several college finance officers are concerned over a major piece of the standard setter’s upcoming proposal. During FASB’s meeting Tuesday, representatives for the National Association of College and University Business Officers expressed support for a consistent operating measure that would clarify expenditures associated with a nonprofit’s mission and available funds. However, colleges and universities are uncertain whether the proposed metric would properly define the spending associated with their missions. Expressing such concerns, George Washington University associate vice president Sharon Heinle is worried that lenders, creditors and. Read More.
University of Penn Not Happy with PILOTs Resolution
Seeking to resolve the city’s school funding crisis, the Philadelphia City Council has approved a non-binding resolution that allows its mayor to request payments in lieu of taxes (PILOTs) from larger nonprofit organizations. Approved by a 15-1 vote, the resolution seeks payments from mega-nonprofits such as universities and major healthcare institutions. Although the resolution was introduced by a University of Pennsylvania (“Penn”) alumnus, the Daily Pennsylvanian reports that the campaign for PILOTs had singled out the school. Additionally, a Philadelphia-based economic justice coalition that supports PILOTs specifically targets Penn on its website. For more on the PILOTs resolution , visit the Nonprofit. Read More.
Fidelity Charitable Discusses “The Role of Volunteering in Philanthropy”
In a report published earlier this year by Fidelity Charitable, the organization examines the relationship between volunteers and their charitable giving efforts. Based on data from 2014, Fidelity Charitable discovered that 87 percent of volunteers believe an overlap exists between the organizations they financially support and where they volunteer. Also explored in the report are the demographics of donors that also give time to their charity, revealing that the most active donor-volunteers are in the 61-70 age range, and donors 50 or younger are most likely to volunteer. For more on Fidelity Charitable’s report, “The Role of Volunteering in Philanthropy” , please visit the Nonprofit Quarterly. Read More.
New York State Politician Accused of Misusing Public Funds
A New York state legislator recently found himself in hot water over an alleged misappropriation of public funds. Based on a report from the New York Daily News, Assembly Speaker Carl Heastie purportedly steered over $600,000 to a nonprofit organization with no official board or tax filings. The group, the Bronx Business Alliance, was once awarded a state grant to renovate buildings owned by a partnering nonprofit board member. However, the owner used the money for something other than the property. In response to the report, Heastie claimed he wasn’t responsible for checking if the public dollars the Bronx Business. Read More.