PBMares Accounting Blog

Tax Reform May Negatively Impact Charitable Contributions

Posted by Edward T. Yoder, CPA, MSA on Feb 9, 2018 10:52:41 AM

The 2017 Tax Cuts and Jobs Act (the Act) passed by Congress on December 22, 2017 marks the most significant tax law changes in over 30 years.  Most taxpayers will see their tax liability decrease.  The Congressional Budget Office estimates the Act will reduce tax revenues by $1.455 trillion over the next 10 years.  But all is not good for non-profit organizations as there are changes in the Act that may negatively impact charitable contributions.  The Tax Policy Center predicts that charitable giving will decrease in 2018 by 4 percent to 6.5 percent, or between $12.3billion and $19.7billion.  An Indiana University Lilly Family School of Philanthropy study estimates that charitable giving will decrease 4.6 percent or $13.1billion because of the Act.

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Topics: Not-for-Profits

Increase Donor Funding and Loyalty by Building Relationships

Posted by Rachael M. Kosmyna on Feb 5, 2018 4:06:57 PM

One problem that every not-for-profit organization encounters is the need to raise money to fulfill the organization’s purpose. Some not-for-profits have an established circle of major donors who regularly make large charitable contributions, while other organizations seem to plead with anyone for a contribution in any monetary amount.

A great way to motivate donors and reduce fundraising pressures on your staff is through building and strengthening relationships with individual donors.  This is especially true with major donors, or those donors who make a major investment in your organization.

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Topics: Not-for-Profits

Maximize Your Organization’s Public Support: How to Use the Updated Form 990 Schedule A to Your Advantage

Posted by Jonny Rosch, CPA on Jan 30, 2018 3:06:17 PM

Will the public change the way it makes donations as a result of the Job Cuts and Jobs Act? And will your non-profit be impacted by those behavioral changes?

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Topics: Not-for-Profits

How the Proposed Tax Plan May Affect Non-Profit Organizations - New Excise Tax on Private Universities

Posted by Nick Preusch, JD, LLM, MSA, CPA on Nov 16, 2017 12:15:41 PM


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Topics: Not-for-Profits, Tax Updates

How the Proposed Tax Plan May Affect Individuals Ability to Receive Tax Incentives for Charitable Deductions

Posted by Nick Preusch, JD, LLM, MSA, CPA on Nov 6, 2017 3:49:36 PM

The House Ways and Means Committee have released its first bill of the "Tax Cuts and Jobs Act." The 429 page proposed bill is the first look at the committee's proposed tax changes. There is still a long road until there is an actual bill passed by Congress. The bill still requires a vote in the House. The Senate then will attempt to pass a similar bill. Once both bills are passed, it will need to go through a process known as reconciliation where the House and Senate create a joint bill that will go to the President's desk for signature.

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Topics: Not-for-Profits, Tax Updates

Top 5 Issues Lenders have with Nonprofit Financials

Posted by Bo Garner, CPA, MBA on Oct 25, 2017 2:49:09 PM

I continue to see and hear about issues that our clients and others in the nonprofit industry are having with their lenders with respect to financial statements. It is becoming more evident that many lenders do not understand nonprofit financial statements due to their unique financial reporting requirements. Below are the top 5 issues that nonprofits have with their lenders.

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Topics: Not-for-Profits

Consolidations Clarification ASU 2017-02

Posted by Robin Lam, CPA on Oct 9, 2017 10:52:52 AM

ASU 2017-02  was issued in January 2017 by the FASB to clarify when a not-for-profit entity (NFP) that is a general partner or limited partner should consolidate a for-profit limited partnership or similar legal entity. 

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Topics: Not-for-Profits

Eliminating the Concept of Extraordinary Items

Posted by Theresa Leon, CPA, MPA on Oct 5, 2017 9:12:08 AM

Determining whether an event or an item was an extraordinary item has been a confusing and often burdensome determination for accountants and entities alike.  Over the years, an item could be argued for and against the consideration to be treated as an extraordinary item.  For example, Hurricane Katrina caused terrible damage and one might consider such an event would be an extraordinary item.  However, a hurricane in and of itself is not considered to be unusual or infrequent in nature as hurricanes are a likely event.  Although the damage was by the hurricane was catastrophic, it was not deemed and did not meet the requirements to be considered extraordinary.  An extraordinary item was previously considered to be an item that was unusual and infrequent in nature.  The gain or loss on these items was to be shown segregated from the results of ordinary operations on the statement of activities, net of any tax.  In addition, the extraordinary item was to be disclosed in the accompanying notes to the financial statements describing the origin, nature and the amount.

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Topics: Not-for-Profits, Tax Planning

Renting Dorm Rooms for Additional Funding

Posted by Nick Preusch, JD, LLM, MSA, CPA on Sep 11, 2017 10:59:25 AM

Fox Business recently ran an article on a creative way non-for-profit universities have been raising funds. (See the article here). As a basic summary, universities have started renting out dorm rooms to people in order to raise additional funds to support the university. These creative ways to raise additional revenues come as enrollment numbers and state financing have been declining. With these creative fund raising ideas, non-for-profits need to be aware of unrelated business income and what effects these rules could have on their non-for-profit.

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Topics: Not-for-Profits, Tax Updates

10 Signs It May Be Time to Shop for a New Auditor

Posted by Shawn Middleton, CPA on Aug 10, 2017 4:14:23 PM

Thinking about hiring a new auditor can be overwhelming. Many times over the years I have heard auditees say, “I don’t want to get used to a new auditor, or have to deal with a new process.” They want to stick with what’s comfortable and familiar, despite the possibility that a better option may exist out there. However, there could be an auditor that is a much better fit for your organization, and you are missing out on an opportunity to better serve your organization by not considering the below items. Here are 10 signs that it may be time to consider a change. There are in no particular order, as each organization may feel certain items are more important than others.

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Topics: Not-for-Profits