1. Presented by Joanne Montagner-Hull CPA of
NON-PROFIT UPDATE May 2017
Presented by
Joanne Montagner-Hull CPA of

2. Non-Profit Organizations - ?
Should say, “Tax Exempt Organizations” instead
Why? Because they must make a profit to have and retain reserves
“NPO” herein…

3. Recently…
Substantial increase in restricted funding, unrestricted is drying up
Expect more funding pressure; potential drying up of government funds
Minimal applicable new NPO accounting standards
No International NPO standards . . yet

4. Restricted Funds
Need unrestricted funds for rent, copier, utilities, overhead
More grant funds are restricted – for time, for purpose
Donor “traction”
Must account for each grant to “release” the funds when spent

5. Accounting for Restricted Funds
Less overhead coverage but you’ll need it to cover the accounting work!
Track by grant, by time/by purpose
Need quality tracking mechanisms in place
Need to track Net Assets and Cash
If significant, best practice=monthly

6. Upcoming NPO Presentation Change
Years beginning after 12/15/17; interim periods beginning after 12/15/18
Perceived complexities of current 3 classes of Net Assets
Perceived confusion in assessing financial position & liquidity needs

7. Upcoming NPO Presentation Change
“Balance Sheet”-Net Assets – two classes:
a. With Donor Restrictions
b. Without Donor Restrictions
2. “P&L” – by those two classes
3. “Cash Flows” – Can use direct or indirect method; indirect’s reconciliation not required.

8. Upcoming NPO Presentation Change
4. Disclosures enhanced; more to include board designations and other “clarifying..helpful” information

9. New Lease Standard (applies to everyone)
Effectively stops one of largest forms of off-balance sheet accounting
Requires creation of asset & liability for ‘operating leases’

10. New Lease Standards Plenty of lead time to adopt; may early adopt
Public companies - years beginning after 12/15/18
All others beginning after 12/15/19
Interim periods within fiscal years beginning after 12/15/20

11. Other New Standards..
No other broad, sweeping changes..but several re:
new revenue recognition standards for ‘customer contracts’ & earned income issues;
business combinations & intangibles;

12. Other New Standards.. derivatives; deferred taxes; consolidations;
certain defined benefit plans & defined contribution plans.
If you have those, be sure to follow up.

13. CPA Issuing Interim Financials..
The updated presentation rules for not-audited, interim/monthly financials -
“No assurance is provided on these financial statements.”

14. CPA Issuing Interim Financials..
“Substantially all disclosures required by US GAAP are not included.”

15. Form Update
More attention being paid to Public vs. Private entity (Schedule A)
Watch your organization’s funding streams: diverse? or captive?
Attorney’s say Restricted vs. Unrestricted means nothing for this analysis
Be complete, honest & thoughtful about your answers – More IRS NPO audits occurring; well documented files!

16. Employee vs. Contractor
Continued IRS heat here
Has implications for anyone paying someone
1099 – My personal gripe =
“Stipends”
“Honorariums”
Oh please!
Paying attention to proper process’; Form SS8; Revenue Rulings

17. On Line Giving Resources
Far more use of GoFundMe
Guidestar.com
All Form 990’s found here
To get them – upgraded fee
Charitynavigator.org
Charityguide.org
Givewell.net
Many more – type specific
e.g. “green” vs green building

18. NPO Update Questions? Comments? Referrals? To you? To me?
Thank you for your attention