Nonprofit Blog

In continuation of our series on the impact of Accounting Standards Update 2016-14, Presentation of Financial Statements of Not-for-Profit Entities (“ASU”), issued by the Financial Accounting Standards Board (“FASB”) in August 2016, this article focuses on the topic of liquidity and available resources.  The ASU requires qualitative and quantitative information on the available cash flow for a nonprofit. These disclosures include the following:

Many, if not most, nonprofit organizations will encounter board or leadership turbulence at some point in their lifecycles. Organizational transition, the evolution of mission or executive departures are inevitable. There are times when the board must make challenging decisions and protect the organization from financial and organizational risk, as well as potential reputation damage.

Most nonprofits rely on an investment committee to oversee their investment portfolios. This oversight group can have a big impact on real long-term wealth preservation and ensuring resources are available to realize organizational goals and aspirations.

In August 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update 2016-14, Presentation of Financial Statements of Not-for-Profit Entities (“ASU”). FASB’s agenda was separated into two phases of which Phase 1 has been included in the ASU. Currently, the FASB does not have a projected timeline for Phase 2. Phase 1 of the financial statement project was initiated in 2011 by the FASB to ensure nonprofit reporting continues to meet the dynamic needs of users. It is important to note that a key objective for this ASU is to allow nonprofit entities to tell their financial story and improve the usefulness of information provided to donors, grantors and other users of the financial statements. Since the issuance of the ASU, many clients and board members have posed the question, “How will these new statements and disclosure requirements be presented and what should we do now, prior to adoption?”  While the ASU provides presentation and disclosure examples which help answer these questions, Smith & Howard will be providing a series of in-depth articles on the changes to financial statement presentation and disclosures set forth in the ASU. At the conclusion of the series, practical recommendations for how to prepare for the changes will be provided. Until the second phase is issued by the FASB, our series will include only the changes set in Phase 1 and will cover the following topics:

We love nonprofits here at Smith & Howard. They approach their business with a unique enthusiasm and a drive to help the organization succeed.

Like any industry, nonprofit organizations must stay ahead of the curve when it comes to differentiating their organization from their competitors. As technology continues to evolve, there are many best practices nonprofits can use to maintain love with their current donors while increasing their donor base. Since 2017 is already in full force, here are a few marketing tips that can help all nonprofits!

Smith & Howard extends warm congratulations to our good friend Ann Curry of Coxe Curry & Associates. Ann has been selected as an honoree for the upcoming Heroes, Saints & Legends gala, which is being held in March. Ann will be recognized by the Foundation of Wesley Woods as one of four Georgians who have made significant ongoing contributions to the community through their dedication to leadership, service and philanthropy.

There are many opinions on what the fiduciary responsibilities of nonprofit board members are. The National Council for Nonprofits discusses that boards should:

As competition increases among nonprofits for new donations, there is one advertising avenue worth exploring: Google Ad Grants advertising. Whether you are trying to attract volunteers, drive or increase donations, or achieve greater recognition for your nonprofit’s mission and initiatives, Google Ad Grants can provide you with a free tool for creating a custom marketing strategy. The best news? Nonprofits may qualify for up to $10,000 per month for free AdWords, Google’s online advertising tool. 

Donor advised funds (DAF), which are often alternatives to establishing a private foundation, have received much attention in recent years. Their rise in prominence has prompted financial institutions and other public charities to offer DAF arrangements. There are several considerations in choosing a DAF or a private foundation to fulfill a donor’s philanthropic needs. Some of the considerations include: