Mishandled Paperwork Impacting New York City Nonprofits
A regulation permitting New York City to sell liens on unpaid property taxes and water bills may not sound like an issue for nonprofits, but a conflicting law is complicating matters for 324 of the city’s organizations. In 2011, a regulation was introduced requiring all nonprofit organizations to refile annually for property tax exemptions. Paperwork issues, however, have caused some nonprofits to be added to the New York City of Department’s list of tax lien sales. Fordham Law students are working with nonprofit administrators to identify and remove the impacted nonprofits from the list. More on the paperwork problems of New York City nonprofits is available on the Nonprofit Quarterly website.
Executive Order Ends Enforcement of Johnson Amendment
President Trump has signed an Executive Order directing the Internal Revenue Service not to enforce the Johnson Amendment. Announced last week, the Executive Order ensures that tax-exempt organizations will not be penalized for engaging in certain political activities. The Johnson Amendment was introduced in 1954 to discourage tax-exempt organizations from participating in political activity.
North Carolina Passes Government-Nonprofits Contracting Reform
Earlier this month, the North Carolina House of Representatives approved a regulatory reform bill that would allow the Joint Legislative Program Evaluation Division to review the obstacles nonprofits face when providing services in accordance with state grants and contracts. The review is the result of research indicating that half of North Carolina nonprofit organizations with government grants and contracts receive late payments from government agencies. That same research also revealed that three-fourths of those nonprofits deal with unnecessary application and reporting requirements.
FASB Reaches Decisions on Revenue Recognition Guidance for Nonprofits
Progress continues on the Financial Accounting Standards Board’s (“FASB”) project on the revenue recognition of grants and similar contracts by nonprofits. At its Wednesday meeting, the FASB reached decisions on the following matters: The proposed amendments to distinguish between conditional and unconditional contributions will pertain to both a resource provider and a recipient. To satisfy the definition of a “donor-imposed condition,” a right of return or a releasing of the promisor from their responsibility to transfer assets must be present in the agreement. In order to be considered a condition, the agreement must indicate that the recipient is only entitled. Read More.
Forthcoming Accounting Guidance Updates to Impact Nonprofits
Some of the Financial Accounting Standards Board’s Accounting Standards Updates will certainly have an effect on nonprofit organizations. As the standards’ effective dates draw near, the American Institute of Certified Public Accountants (“AICPA”) has highlighted five standards nonprofits should become familiar with: Going concern requirements Consolidation requirements Simplifying the presentation of debt issuance costs Fair value disclosures when net asset value per share is used Inventory measurement More on these standards is available on AICPA.org. In addition, Cherry Bekaert’s Melisa Galasso will host an AICPA webinar on April 25 to offer nonprofits guidance on these Accounting Standards Updates.
Topics: Accounting Standards Update "ASU", AICPA, American Institute of Certified Public Accountants "AICPA", Consolidation, Debt Issuance Costs, Fair Value Accounting, FASB, Financial Accounting Standards Board "FASB", Going Concern, Inventory, Nonprofits
Oregon Nonprofit Survey to Reflect Equity and Inclusion
In a change from previous years, the Nonprofit Association of Oregon is updating the questions in its annual 100 Best Nonprofits to Work for in Oregon survey to reflect equity and inclusion. The change is being credited to the nonprofit sector shifting its focus to creating an equitable workforce. Oregon Business’ Kim Moore says that local philanthropy has spearheaded the change, as some donors are considering equity and inclusion in their grantmaking efforts. More on the Nonprofit Association of Oregon’s survey changes is available on the Nonprofit Quarterly.