A Different Type of Bean Counter

IRS Publication 517 covers housing allowances, and with tax season approaching, I wanted to quickly go over how organizations should provide this benefit and how recipients should handle it. I mentioned a specific reference from Publication 517 during the podcast but couldn't find it at the time—it's in the Q&A section. Below is the link to that section.https://www.irs.gov/faqs/interest-dividends-other-types-of-income/ministers-compensation-housing-allowance/ministers-compensation-housing-allowance

I share my thoughts on how service providers and clients can collaborate more effectively to minimize the stress and costs associated with providing some of the required services.

A topic that I have been slow to address. How do we differentiate between sponsorship and advertising transactions and revenue?

A topic that I have been slow to address. How do we differentiate between sponsorship and advertising transactions and revenue?

On this episode, we discuss the different types of reimbursement plans an organization can have and the possible tax impact of the individual being reimbursed.

Do you know what insurance matters your organization should be thinking about? Tune in to meet Heritage Insurance Advisor Andrew Oswalt and learn about different types of insurance and reawaken your perspective on insurance and how you approach it.

Cash versus accrual accounting. In practice, what is the real difference for most organizations? Which is best for you to use?

Have you ever wondered what exactly an Audit is? Do you think your nonprofit would benefit from an audit? Tune in to hear what audits do and don't do on A Different Type of Bean Counter.

Have you ever wondered how to go about starting a nonprofit organization? Listen for the key steps to your organization formation and to ensure your tax exempt application is approved by the IRS.

Do you know the difference between a bookkeeper, an accountant, a controller and a CFO? Each financial role serves a very specific role. Listen to hear how each role can benefit your organization.

Almost all nonprofit organization have these type of transactions. Are we identifying and reporting them properly?

I was finally able to find someone to explain the ERC to me in a way that made sense. David Cepek, CPA, Client Recovery Agent with ERC Application.com is my guest on this episode. David informs us of who still might be eligible for the credit and what a true partnership looks like in the application process. David can be reached at david.cepek@ercapplication.com or 740-597-1500.

Rainy day fund, sustaining fund, or a lot of other names, board designated amounts impact your financial statements, but how? In this episode we will discuss potential impact on fundraising, what policies should be in place, and what mandatory disclosures exists for these dollars.

Contributed nonfinancial assets, oh in-kind contributions. This is a new requirement to disclose the nature and extent of contributed nonfinancial assets apply regardless of whether the "in-kind contribution" has been recognized as revenue in the organization's financial statements. Because we are now disclosing information on the contributed nonfinancial assets, the attributes of the disclosure must be documented and testable. In this podcast, we attempt to take the new disclosure requirement and make it less daunting and more understandable.

AICPA Code of Professional Conduct requires that members in public practice be objective, free of conflicts of interest, and independent in fact and appearance. Ok so why does that impact me as the person receiving service from my CPA? Why are we talking about this so much? I hope to give you an idea of what is going on that creates this strange dynamic between accountant, auditor and the client.

We cannot ignore the importance of technology, even accountants have podcast. However, we should be mindful of our goals and risks related to technology. In this podcast, we discuss some recent information regarding how nonprofit organizations use technology as well as ideas for incorporating technology into our mission.

How should the Board and the CEO interact? I am seeing this become more of an issue as we have entrepreneurs enter Board and CEO positions. However, I am seeing the most difficult discussions taking place with long time mature Organizations where an existing communication rhythm might be interrupted. It is vital that the relationship between the CEO and the Board be understood. It takes time to develop a good rhythm in any relationship and this is no different.

A fiscal sponsor can be a “home” for a startup nonprofit, a charity, or a fledgling nonprofit program looking for funding even if it lacks tax exempt status. This can be helpful for new charities because the fiscal sponsor will often take on a number of responsibilities that they might struggle with on their own, including receiving and administering contributions, dealing with some of the operating issues of a nonprofit, etc. Is it all good? No, we talk about some of the areas to be aware before stepping into this arrangement.

In 2020, the IRS changed the Form 1099 and the reporting due dates. Do you remember that from last year? In this podcast, I review those changes and give a refresher of the changes. This is still new, and the due date is coming quickly.

We are going to take the summer off to record some episodes so that we can be more consistent this fall in our release dates. Thank you for subscribing!!!

It is Monday. Do you know where your risks are? In this episode of a Different Type of Bean Counter, I learn a lot from Phil Hein, Hylant Insurance Group. Phil discusses the gaps that could exist in insurance coverages that are especially important to nonprofits as well as some practices that could void insurance coverages. I trust that you will take away as much from this discussion as I did.

Today, I cover quickly, 3 topics that you should be talking about with your financial team and your Board. Your policies and procedures may need to be revisited to do things properly in the world of fast changing external reporting requirements.

Form 1099-NEC (Nonemployee Compensation) replaces the information typically filed in Box 7 of the Form 1099-MISC. Listen to a quick discussion on the new form, due dates, and when the forms are required to be filed.

The rules are consistently changing. Today, we talk about a big change. Does it impact you? Yes. It either impacts you today or as the ruling bodies align it will impact you in the future. The topic is independence and how having an independent service provider will look beginning yesterday.

Most Not-For-Profit Organizations have a donor advised fund.  We explore that the funds are not being accounted for correctly.  Then talk about the advantage of accounting for them correctly given some other changes in the Not-For-Profit Industry accounting rules.

I use some information from a book by Peter Greer and David Weekley, The Board and the CEO, to discuss Board profiles. In order to determine the type of Board, it is important to determine the type of Board members that comprise the Board. Greer and Weekley developed 10 profiles of Board members that I discuss.

We try to give clear directions regarding what the rules are for tax exempt organizations regarding advocacy, lobbying, and campaigning in this episode. Take a listen to make sure you are on the right side of the rules.

In this episode, we talk about Schedule A of the Form 990. Most nonprofit organizations view this schedule as an afterthought. The IRS sees this schedule as the primary identifier of a public charity status. This shows the gap in understanding and use of the Schedule A. We quickly attempt to discuss ways to identify and see the story being told on Schedule A to the IRS.

Omar Elhagmusa, Senior Lending Officer at IFF, and I discuss some of the social constructs that impact nonprofit's financially. Omar then uses his resources through IFF to demonstrate how the social constructs can be overcome.

Listen into Part 2 of my discussion with Beth Short, Outreach and Education Ohio Attorney General Charitable Law Section. In Part 1, Beth gives us the history of the Attorney General responsibility to donors in the State of Ohio. In addition, we spend time discussing the free resources available to Nonprofit Organizations through the Attorney General's office.

Listen into Part 1 of my discussion with Beth Short, Outreach and Education Ohio Attorney General Charitable Law Section. In Part 1, Beth gives us the history of the Attorney General responsibility to donors in the State of Ohio. In addition, we spend time discussing the free resources available to Nonprofit Organizations through the Attorney General's office.

Listen into my conversation with Justin Showers, Chief Marketing Officer, and Tina Fisher, CEO, of Givevia. Givevia is a no cost shopping platform that creates the opportunity for Nonprofit Organizations and supporters to connect remotely. At Wells, CPA we believe that platforms like this will become necessary in the future to sustain the individual donor base of Nonprofit Organizations.

William Poindexter III, Principal Financial Group, and I discuss some of the hidden values that a financial advisor can bring to a Nonprofit Organization. I did not consider that there are some administrative functions that a financial advisor could fill in an Organization. In addition, these are individuals that understand environmental risks well. Nonprofit Organizations may want to consider addressing environmental risks in their planning models.

Tarra Nystrom, SMART Money Grant Writing, and I explore the science behind donors giving. Tarra provides some valuable information about what you may want to know about your donors. Also, she provides great examples of how to be prepared for the next crisis that will impact fundraising.

As we learn a new normal and how to conduct ourselves during the Coronavirus, I want to encourage you to use this time well.

Jackie Doodley, Director of Development and Donor Relations, discusses the PEER Center and how a recovery club meets the needs of people recovering from mental health illness, addiction and trauma. Then I spend just a few minutes trying to clarify information regarding the tax filing and payment due dates for the tax year ended 2019.

Dean Pulliam, Director of Nonprofit and Charity Accreditation at BBB and I discuss the resources that BBB can provide to Nonprofit Organizations at various stages of development. Then I jump into the revenue recognition rules once again. It is complicated but we cannot run from the rules any longer.

I was able to sit down with Sam Queeno, Director of Physical Security at AEP, and possibly the most engaged Board Member I know. Sam and I talk about what it means to be engaged as a Board Member and the PEO fundraising model. Then I get technical and talk about where to look for guidance when starting a nonprofit and what you should consider as you put the nonprofit structure in place.

I am blessed that Rye D'Orazio, Area Director of Fellowship of Christian Athletes, stopped by to share about the ministry. I know you will be surprised to hear some of the areas that FCA is touching around you every day. Then I have decided to give my opinion on if nonprofits should have financial statement audits. Not everyone will agree with me but I am trying to balance fiscal accountability with mission/ministry work and time. My hope is that the topic creates some discussion within your management and Board.

On this episode we discuss why we are going to be podcasting. We also offer an update on the Parking Tax issue. Finally, we promote a great event in late January for Nonprofit Organizations.