Google Grants Donation Program

In my previous post, I recommended a search website powered by Yahoo.  Now, to even the playing field, I’d like to share with you how Google may help to support your non-profit.  Google has created a program whereby non-profit organizations can apply for a grant for in-kind advertising donations awarding free AdWords advertising.  Google grants generally supports organizations with missions including science and technology, education, global public health, the environment, youth advocacy, and the arts. Continue reading »

CEO COMPENSATION STUDY COMPARISONS

The popular website Charity Navigator has published the 2009 CEO Compensation Study which compares the compensation of thousands of nonprofits by geographic area, size, charitable mission and more.  The new 2008 Federal Form 990, Schedule J inquires how your organization establishes CEO compensation, and this survey provides one alternative to this highly scrutinized area.  Click on this link for the survey:  http://www.charitynavigator.org/index.cfm?bay=content.view&cpid=933

Web Surfing for the Greater Good

In the current economic downturn, two websites have become available that make it possible for charitable organizations to generate revenues based on their supporters web activity.

GoodSearch.com is a new Yahoo-powered search engine that donates half its advertising revenue, about a penny per search, to the charities its users designate. Use it just as you would any search engine, get quality search results from Yahoo, and watch the donations add up!

For example, an organization with 500 supporters signed up who average 8 searches per day would generate $14,600 in annual revenues!

GoodShop.com is a new online shopping mall which donates up to 37 percent of each purchase to your favorite cause! Hundreds of great stores including Amazon, Target, Gap, Best Buy, eBay, Macy’s and Barnes & Noble have teamed up with GoodShop and every time you place an order, you’ll be supporting your favorite cause.

D.C. Charity for Victims Becomes Victim of Fraud

We all want to believe the best of people, especially in the non-profit sector and especially our own staff and coworkers but it pays to maintain some skepticism and remember that good internal controls protect everyone.  Non-profit charities are motivated to put as much funding towards program missions as possible and may view additional administrative support as a luxury better left to profit-making corporations . Continue reading »

Employers Disclosures about Postretirement Benefit Plan Assets

FASB Staff Position 132( R) -1, “ Employers’ Disclosures about Postretirement Benefit Plan Assets”  shall become effective for fiscal years ending after December 15, 2009. This will require enhanced disclosures about defined benefit pension plans and other postretirement benefit plans such as post-retirement health benefits. FAS # 157 requiring fair value measurements will also apply to benefit plan assets. Section 960 of the codification contains information about benefit plan accounting.

http://www.fasb.org/cs/BlobServer?blobcol=urldata&blobtable=MungoBlobs&blobkey=id&blobwhere=1175818788795&blobheader=application%2Fpdf

Church Compensation

I support the current IRS position that exempts churches, synagogues and other faith based organizations from filing IRS Form 990.  However, I do think these organizations, by reading the new 990, would identify some best practices that if applied to their organization could reduce the risk of fraud and increase public confidence.  For example Schedule J, Part I question 3 asks, “Indicate which, if any, of the following, the organization uses to establish the compensation of the organization’s CEO/Executive Director:

             Compensation committee;

            Independent compensation consultant;

            Form 990 of other organizations;

            Written employee contract;

            Compensation survey or study, and;

            Approval by the board or compensation committee.”

 The implication is that some of these sources should be used in setting executive compensation.  ECFA provides a good free survey of faith based senior management salaries across the United States at ECFA Compensation Survey.  Check back later for more posting on faith based organizations and the IRS Form 990

Craig’s Corner

As we move through the summer there is much national debate about major issues affecting the country including health care, the economy and the growing amount of national debt. Associations are no doubt in full swing in assessing these possible changes on their members and almost all non-profits be they trade groups, charities, private schools, religious organizations and others are feeling the pinch (and for some the strangulation) of the economy. Organizations are adjusting and making critical assessments about which programs are most important and what is feasible in the current fiscal landscape.

 Bread for the City ( www.breadforthecity.org) is one local organization I am very proud to have been recently named to the Board of Directors.  Bread has been active in the DC area since the mid 1970’s  with a mission to provide comprehensive services, including food, clothing, medical care, legal and social services to low-income Washington, DC residents in an atmosphere of dignity and respect. 

 The economic situation had impacted them through both the reduction in contributions and the increased demand for services. Staff members from the top on down have taken  a 10 % paycut to make ends meet and every area of operations is being examined to create efficiencies. Donor acquisition mailings for FYE 6/30/2010 are being eliminated as well as other cuts to help balance the budget. While very stressful we feel confident that Bread will survive and continue to thrive in the days ahead.

 With respect to the accounting world there continue to be an avalanche of pronouncements making financial compliance with GAAP more challenging  by the day. One important thing for accountants to be aware of is the FASB codification project which has recently become effective. See www.fasb.org to access the codification. Its purpose is to reorganize the thousands of U.S. GAAP pronouncements into roughly 90 accounting topics and display all topics using a consistent structure. It was becoming too cumbersome to research GAAP because there were so many places to look and now all relevant GAAP is shown in the codification.

990- N ( e-Postcard)

The Internal Revenue Service has issued final regulations on how and when small tax-exempt organizations (less than $25,000 in annual gross receipts) should file their annual “e-Postcard,” Form 990-N. The regulations finalize, without change, temporary regulations from 2007.  Previously organizations with annual gross receipts below $25,000 had no filing requirement. The IRS website provides a lot of useful information on this topic at  http://www.irs.gov/charities/article/0,,id=169250,00.html

Guidance on Non-Profit Mergers and Acquisitions

The Financial Accounting Standards Board (FASB) recently completed its 10 year long project to create standards for the combination of one not-for-profit organization with another not-for-profit organization or activity just in time for it to be included in the new FASB Codification system.   SFAS 164 applies to mergers when the merger date is on or after the beginning of an initial reporting period beginning on or after December 15, 2009 and acquisitions with an acquisition date on or after the beginning of the first annual reporting period beginning on or after December 15, 2009.  Early adoption of this statement is not permitted.  Continue reading »

Maryland Workplace Fraud Initiative

Maryland’s Governor Martin O’Malley (by executive order No. 2009.19) recently created a multi-agency Task Force that will coordinate investigations into, and enforcement of, work place fraudulent practice. The executive order defines work place fraud as a practice whereby employers improperly classify “employees” as “independent contractors”.  Continue reading »