Carrie Minnich, CPA recently posted about in-kind contributions for Mission Minded, Dulin, Ward & DeWald, Inc.’s nonprofit blog.
Bottom line – record on your financials the fair market value for most gifts, fund raising items, facilities, and services. Carrie goes into details on her blog with some of the exceptions to the rules. She also notes that it is important to record all contributions, even if not required for reporting on financials.
Are you up to date on your business entity reports with the state of Indiana? Carrie Minnich in a blog post from August 2016 addresses how an organization can be reinstated if the reports have not been filed. The problem with not filing is that the organization will be administratively dissolved and may not conduct business.
Below are the steps Carrie mentions that are required to be reinstated.
1. “Complete Form AD-19, Affidavit for Reinstatement of Domestic Corporation and Form ROC-1, Correct/Change of Responsible Officer Information to obtain a Certificate of Clearance from the Indiana Department of Revenue.”
2. “The Certificate of Clearance will be mailed to you by the Indiana Department of Revenue in approximately 4 weeks.”
3. “Complete Form 4160, Application of Reinstatement. You must have a Certificate of Clearance from the Indiana Department of Revenue before the Application for Reinstatement can be filed. There is a $30 reinstatement fee required with this form.”
4. “Complete Form 48725, Indiana Business Entity Report and pay the required filing fees for all years owed. It is not necessary to complete a separate form for each filing year owed; however, you must pay the filing fee for each year and complete the most current form.”
5. “Mail the Certificate of Clearance, Application for Reinstatement and Business Entity Report, along with the required fees noted in 3 and 4 above to the Indiana Secretary of State. All four of these must be mailed together.”
Do you accept credit card payments at your nonprofit? If you do, then this blog post is for you.
Carrie Minnich in her July 27, 201 post on DWD’s Mission Minded Blog addresses Payment Card Industry Data Security Standards (PCI DSS). She explains that there are a number of requirements and most importantly is to protect the cardholder’s data. This data should not be stored unless it is required for business needs. Information that is stored needs to be restricted and only accessible with a password or encryption.
To read the requirements, what can be stored, and what data cannot be stored, read Carrie’s full blog post here.
Carrie Minnich begins her latest post from the DWD Mission Minded blog with the question – want to make your auditor happy? Of course I said yes with the utmost enthusiasm! And so I read on.
She got me with an emotional hook by commenting that most people don’t look forward to their annual audit. I remember my first – it was with the Department of Education at a university. It was a busy week working with the auditors and all ended well. We had many things prepared (one of Carrie’s tips in her blog post) and that greatly helped us all be successful.
There are seven other tips that Carrie points out that would “make your auditor happy.” To read her list, check out the Mission Minded blog here.
This week Carrie Minnich posted about a proposed change for the Statement of Cash Flows from the Financial Accounting Standards Board. For those of you who are unfamiliar with a cash flow statement, it is a report with the cash generated and expended for a designated time period. The new change would require subtotals to include restricted cash. Currently, the standard practice is to include cash and cash equivalents. The decision for the proposed change will be made after June 27, 2016.
Carrie Minnich’s most recent post is a gentle reminder that nonprofits are required to disclose certain information to the public. The first item is an annual return (990, 990-EZ, 990-PF, and 990-T). Nonprofits have to provide at least three years of returns. The second item is the application for exemption (Form 1023 or 1024) and IRS determination letter.
As Minnich goes on to say, typically a nonprofit will need to provide these two items the day that it is requested. However, for written requests the nonprofit has 30 days to make the documents available. It is perfectly acceptable to charge for photocopies and postage if mailing the materials. Nonprofits may have their annual return, application for exemption, and IRS determination letter on their website to make it readily available for the general public.
If nonprofits do not follow the disclosure requirements for annual returns, they could be fined up to $20 a day with a maximum of $10,000.
The latest blog post from Carrie Minnich, CPA at Dulin, Ward & DeWald Inc., is about Nonprofit Audit RFPs.
Whether it’s time for your organization’s first audit or you have decided to find a new audit firm, in order to obtain a CPA firm’s services for your audit work, your organization will most likely use a request for proposal (RFP) process.
Below is a list of some items that you should include in an RFP to make sure that you select an audit firm with the skills and experience to provide the services that your organization needs.
Description of the firm (size, industries served, etc.)
Name and biography of staff assigned to the audit
Experience in auditing nonprofit organizations
Description of why the firm believes it can add unique value/why is it different from other firms
Description of how the firm educates and informs clients on emerging issues relevant to the nonprofit sector
Experience with OMB’s Uniform Guidance (IF your organization requires a Single Audit)
Statement of the firm’s understanding of work to be performed, including tax and nonaudit services
A proposed timeline for fieldwork and reporting, including any required meetings with the board or audit/finance committee
Fee for the services to be provided
Any extra costs that may arise
References from other comparable nonprofit audit clients