We serve privately held and family businesses, angel and venture-backed companies, public companies, foundations, not-for-profit and public sector organizations, and high net worth individuals and their families.
One requirement in the auditing standards is to ask our clients, point blank, if they are aware of any fraud within the company. This requirement is for all entities undergoing a financial statement audit, whether they are a large publicly traded corporation, a small family-owned business, or even a not-for-profit (NFP) organization.
To me, the worst answer is not so much getting a response of “yes,” because let’s face it, we don’t get that response very often. What’s most disappointing is a shocked reply of, “Fraud could never happen here, we’re a charity!”
Unfortunately, history has proven time after time that NFPs are vulnerable to fraud.
On August 18, 2016, the FASB issued Accounting Standards Update (ASU) No. 2016-14 “Not-for-Profit Entities (Topic 958): Presentation of Financial Statements of Not-for-Profit Entities.” ASU 2016-14 requires a number of changes to the financial statements of NFPs. These changes will be effective for fiscal years beginning on or after December 15, 2017.
This article is the sixth in a series discussing the changes required by ASU 2016-14. In this article, we discuss additional information all organizations will need to provide regarding their expenses.
Background
Not-for-profit organizations (NFPs) have specific requirements on how expenses must be reported in their financial statements.
With the incoming new administration comes changes in tax law. The news media has been sharing bits and pieces of the potential changes, which vary by day and speaker. One expected modification, as espoused by the GOP, is the repeal of the federal estate and gift tax. While this may be welcome news to many voters, it is only a part of the estate tax planning equation. We need to remember that the state of Washington itself imposes one of the highest state estate tax rates in the country.
Yes, the Washington estate tax is slated to continue, regardless of potential changes to the federal law.
Updated June 12, 2018: Content changed to include the impact of this change on capital campaign activities and capital fundraising.
Recap
On August 18, 2016, the FASB issued Accounting Standards Update (ASU) No. 2016-14 “Not-for-Profit Entities (Topic 958): Presentation of Financial Statements of Not-for-Profit Entities.” ASU 2016-14 requires a number of changes to the financial statements of NFPs. These changes will be effective for fiscal years beginning on or after December 15, 2017.
This article is the fifth in a series discussing the changes required by ASU 2016-14. In this article,
On August 18, 2016, the FASB issued Accounting Standards Update (ASU) No. 2016-14 “Not-for-Profit Entities (Topic 958): Presentation of Financial Statements of Not-for-Profit Entities.” ASU 2016-14 requires a number of changes to the financial statements of NFPs. These changes will be effective for fiscal years beginning on or after December 15, 2017.
This article is the fourth in a series discussing the changes required by ASU 2016-14. In this article, we discuss new accounting and disclosure requirements for underwater endowment funds.
Background
Endowments are established funds of cash, securities, or other assets to provide income for an NFP.
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