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FASB Proposes Extending Goodwill and Identifiable Intangibles Alternatives to Nonprofits

A recently proposed Accounting Standards Update (“ASU”) aims to help nonprofits account for goodwill and calculate certain identifiable intangible assets. Proposed ASU No. 2018-320, Intangibles-Goodwill and Other (Topic 350), Business Combinations (Topic 805), and Not-for-Profit Entities (Topic 958): Extending the Private Company Accounting Alternatives on Goodwill and Certain Identifiable Intangible Assets to Not-for-Profit Entities, extends an accounting alternative from the Private Company Council that allows nonprofits to amortize goodwill over 10 years or less on a straight-line basis. Nonprofits could also use the accounting alternative to test for impairment upon a triggering event, opt for an impairment test at the. Read More.

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Gender Pay Gap among CEOs Still Wide at Nonprofits

GuideStar’s latest compensation report on those in the chief executive officer position continues to reflect the results from previous years. According to the nonprofit reporting company, the nonprofit gender pay gap for those in the CEO role remains large at higher-end organizations. The gender pay gap is highest among nonprofits with budgets over $10 million. Additionally, nonprofits with budgets over $50 million have a pay gap of 20 percent. GuideStar also discovered that in the top budget band of nonprofits, men CEOs received pay increases nearly twice more (8.4 percent) than women CEOs (4.9 percent). More on GuideStar’s report is available in the Nonprofit Quarterly article. If your nonprofit needs accounting. Read More.

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Buffalo Nonprofit Penalized for HIPAA Breach

A breach of patient privacy earlier this year will cost the Arc of Erie County $200,000. The Buffalo-based nonprofit discovered in February that clients’ electronic personal health information was published on its website. While the Arc of Erie County said the website was for internal use only, the exposed ePHI is considered a violation of the Health Insurance Portability and Accountability Act (“HIPAA”). The organization must now provide a risk analysis, evaluate its policies and procedures, and present its findings to the New York attorney general’s office. Find out more about the Arc of Erie County’s data breach on the Nonprofit Quarterly website.

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USPS Proposes Marketing Mail Changes

Nonprofits will likely be impacted by the United States Postal Service’s (“USPS”) proposed rulemaking for Marketing Mail. The USPS proposes limiting all Marketing Mail to paper-based or printed materials. All other types of Marketing Mail (e.g., clothing, address labels, pens) would be prohibited regardless of their value. Nonprofits commonly distribute such materials with fundraising correspondence. Comments on the proposal are due Monday, October 22. More on this proposal is available on the Federal Register website.

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Chief Justice Announces Court Order on Donor Disclosures

Last week, U.S. Supreme Court Chief Justice John Roberts announced a court order that nullifies the Federal Election Commission’s (“FEC”) regulation allowing social welfare nonprofit donors to be anonymous. Roberts’ order blocked a lower court order in a case concerning Crossroads GPS, a politically active 501(c)(4) organization. The federal district judge overseeing the case ruled that the FEC regulation weakens the congressional goal of disclosing where donations to federal political campaigns originate. The chief justice, however, ruled that the Crossroads GPS case is stayed until further order. More on Chief Justice Roberts’ court order is available on the SCOTUSblog website.

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Treasury Department and IRS Asked to Postpone New Taxes on Nonprofits

Nonprofits are asking for a delay concerning two provisions of the Tax Cuts and Jobs Act enacted earlier this year. The provisions, one relating to business income and the other on expenses incurred for employee transportation and parking, have caused confusion for several tax-exempt organizations since their applicability is uncertain without additional guidance from the Treasury Department and the Internal Revenue Service. Impacted organizations and nonprofit advocates have also submitted to both agencies extensive comments and requests for a delay in the taxes being implemented. More about the requested delay is available in the National Council of Nonprofits’ latest newsletter.

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