News & Insights: nonprofit

Changes to Donor-Advised Funds Landscape and Private Foundations

By Magdalena M. Czerniawski  |  December 15, 2021

Proposed legislation may impose new requirements and restrictions on the use of Donor-Advised Funds (DAFs) and Private Foundations (PFs). These changes, which would impact the availability and timing of charitable tax deductions related to taxpayers’ DAF and PF contributions, would be enacted on January 1, so the window to prepare is short.

Alert: Executive Law 172-B Repealed, Ending Redundant Filings for Nonprofits

By Magdalena M. Czerniawski  |  November 15, 2021

On Friday, November 12, Gov. Kathy Hochul of New York signed S4817a/A1141a to repeal Executive Law 172-B, which had required certain organizations – including charitable and nonprofit organizations – registered with the New York State Attorney General (AG) to also file documents with the New York Department of State (DOS). 

Nonprofit & Government Times, November 2021

November 12, 2021

Compensation, Governance and Compliance Best Practices

By Magdalena M. Czerniawski |  Matthew Estersohn  |  November 8, 2021

From executive compensation decisions to conflicts of interest and excess benefit transactions, nonprofit governance issues demand that board members are informed about best practices, IRS expectations and, in some cases, state law. 

Managing the Rapid Pace of Change: Marks Paneth’s Sixth Annual Nonprofit Industry Update Seminar

October 28, 2021

Our October 7 virtual seminar brought together more than 300 nonprofit leaders to explore actionable solutions to their issues.

Nonprofit & Government Times, September 2021

September 28, 2021

Disaster Relief: What Are the Options for Nonprofits?

By Magdalena M. Czerniawski  |  September 27, 2021

Nonprofits that want to help current or former employees struggling with economic fallout from COVID-19 and natural disasters should evaluate federal and state requirements when deciding how to help.  

Nonprofit & Government Times, July 2021

August 6, 2021

Everyone Should Pay Attention to This GASB Project

By Warren Ruppel  |  July 30, 2021

The GASB is in the process of changing the title of the “Comprehensive Annual Financial Report.” But everyone should stop using the acronym by which the report is commonly referred right now.

Decoding Fundraising and
Schedule G

By Magdalena M. Czerniawski  |  July 30, 2021

With a year of virtual galas behind us we are starting to see them reported on financial statements and tax returns. There were quite few nuances and differences between these two financial documents pre Covid-19, and now with fundraising events being virtual we see even more differences.

Nonprofit & Government Times, June 2021

June 23, 2021

For Nonprofits, E-filing Required for Most Tax and Information Returns

By Magdalena M. Czerniawski  |  June 18, 2021

As the IRS requires increasingly more tax and information returns to be filed electronically, nonprofits are finding that E-filing is faster, more accurate and results in faster refunds when they are due. However, smaller nonprofits accustomed to filing paper returns are sometimes challenged
by e-filing.

Practical Guidance for Implementing the New Lease Standard

By Sibi B. Thomas  |  June 18, 2021

The joint project between the FASB and the International Accounting Standards Board to enhance financial reporting standards for leasing activities has been underway since back in 2006. The time is now for organizations to adopt the reporting practices they will need to comply with
the new lease standard.

Resiliency During Uncertain Times: Resilient Leaders Will Lead Societal Change by Reimagining the Future of Work

By Hassan R. Khan  |  June 18, 2021

Technology leaders today are in a unique position to help their organizations reimagine the future of work. It is time now to pivot, to take the lessons learned during this pandemic and use them to reimagine the future. By pivoting successfully, resilient leaders will create resilient organizations.

Nonprofit & Government Times, April 2021

May 7, 2021

A New Spirit Emerges in Today’s Resilient Nonprofits

By Hope Goldstein  |  May 6, 2021

As they emerge from the COVID-19 crisis, nonprofit leadership teams are putting resilience into practice through smart strategies that reflect an optimistic outlook for the future.

Nonprofit Alert: Additional New York State Filing Required by May 15

By Magdalena M. Czerniawski  |  May 5, 2021

As a result of changes to Executive Law 172-B, certain organizations registered with the New York State Attorney General are required to file documents with the New York Department of State by May 15.

Nonprofit & Government Times, March 2021

March 31, 2021

This issue of Nonprofit & Government Times provides you with timely and insightful information.

Resiliency During Uncertain Times: To Protect Your Nonprofit from Another Crisis, Focus on Business Continuity Planning and Best Practices

By Hassan R. Khan  |  March 29, 2021

Continuing to focus on sound business continuity practices can protect your organization in the advent of another crisis.

Final Regulations on Exempt Organization Excess Renumeration

By Magdalena M. Czerniawski  |  March 26, 2021

An overview of the final IRS regulations on the taxation of excess executive compensation for tax-exempt organizations.

American Rescue Plan Act: Relief for Nonprofits

By Sibi B. Thomas  |  March 22, 2021

On March 11, 2021, President Biden signed the American Rescue Plan Act (ARPA) into law providing an additional $1.9 trillion in COVID-19 relief. ARPA includes several relief provisions for nonprofits.

Complying With Federal Requirements for COVID-19 Funding in Your Single Audit

By John D'Amico  |  February 25, 2021

Nonprofits and state and local governments are subject to a federal Single Audit if they expend $750,000 of federal financial assistance or more in their fiscal year. This includes COVID-19 assistance either in grants or loans and all their other non-COVID-19 federal financial assistance expended in their fiscal year.

Resiliency During Uncertain Times: What’s Next for Technology Operations and Investments?

By Hassan R. Khan  |  February 25, 2021

As COVID-19’s ramifications ripple through the global economy, one thing is certain: technology will be among the most powerful weapons in every organization’s arsenal for responding effectively and decisively to this challenge. Nonprofits and higher education institutions will not be an exception to the norm.

Nonprofit & Government Times, February 2021

February 23, 2021

This issue of Nonprofit & Government Times provides you with timely and insightful information.

What Can Nonprofits Expect Under the Biden Administration?

By Matthew Estersohn  |  January 29, 2021

Like the rest of the economy, nonprofit organizations have had to navigate the COVID-19 pandemic, an ever-changing economy, social change and political uncertainties. As scenario planning remains critical in these times of uncertainty, we want to highlight key Biden Administration plans and their potential impact on the nonprofit community.

Nonprofit & Government Times, January 2021

January 29, 2021

This issue of Nonprofit & Government Times provides you with timely and insightful information.

IRS Issues Final SILO Regulations for Nonprofits

By Magdalena M. Czerniawski  |  January 29, 2021

The IRS has issued final regulations providing guidance on how an exempt organization subject to unrelated business taxable income (UBTI) determines if it has more than one unrelated trade or business.

Consolidated Appropriations Act: Relief for Nonprofits

By Sibi B. Thomas  |  January 7, 2021

The Consolidated Appropriations Act of 2021 (the “Act”), signed into law on December 27, 2020, updates several provisions from the Coronavirus Aid, Relief, and Economic Security (CARES) Act, specifically for Paycheck Protection Program (PPP) loans.

Nonprofit & Government Times, November 2020

November 24, 2020

This issue of Nonprofit & Government Times provides you with timely and insightful information.

Tips to Reduce Uncertainties and Provide More Stability in 2021

By Hope Goldstein  |  November 23, 2020

During this time of COVID-19, nonprofits continue to work relentlessly to serve their stakeholders and clients while meeting their missions in circumstances that were previously unthinkable. The good news is the election is behind us, and there are some promising vaccines that will hopefully be entering the market soon.

Maintaining Internal Controls for a Remote Environment

By Hassan R. Khan  |  November 23, 2020

Internal control environments are constantly evolving with employee departures, software updates, offered services and programmatic changes. However, given these unprecedented times, there is potential for higher risk of fraud, internally and externally. 

The Impact of COVID-19 on Single Audits

By John D'Amico  |  October 21, 2020

The 2020 OMB Compliance Supplement, which is required to be used by auditors performing a Single Audit, did not include guidance for auditing COVID-19-related federal financial assistance. The OMB advised that they will issue an addendum to the Supplement to address this concern but until it is issued, there is a great deal of uncertainty regarding compliance with the requirements for such assistance.

Increased Transparency on Gifts-in-Kind

By Sibi B. Thomas  |  October 21, 2020

The FASB has issued Accounting Standards Update No. 2020-07 that increases transparency around gifts-in-kind received by not-for-profit organizations.

Nonprofit & Government Times, September 2020

September 12, 2020

This issue of Nonprofit & Government Times provides you with timely and insightful information.

Hurry Up and Wait!

By Philip Marciano  |  September 12, 2020

Nonprofit organizations now must consider what the effect of the delay in revenue recognition and lease standards has on their financial statements. 

Navigating New York’s Rules on Tax Exemption

By Magdalena M. Czerniawski |  Robert Lyons  |  September 12, 2020

New York’s extremely complicated rules involving the exemption of tax-exempt organizations can be overlooked when an organization is formed or begins to do business in New York.

Nonprofit & Government Times, August 2020

August 12, 2020

This issue of Nonprofit & Government Times provides you with timely and insightful information.

Main Street Lending – Now Available for Nonprofit Organizations

By Joseph J. Kanjamala  |  August 12, 2020

The Main Street Lending Program has been expanded to provide greater access to credit for nonprofit organizations.

Bringing AI to the Security Fight: Augment the Security Team and Disrupt Machine-Speed Attacks

August 12, 2020

As companies around the globe are increasingly facing the devastating impacts of cybersecurity breaches, artificial intelligence has proven it can handle many of the processes involved in fighting cyber-threats.

Congress Passes Bill to Help Nonprofits Stay Afloat During COVID-19 Pandemic

July 13, 2020

The Senate unanimously passed bipartisan legislation, the Protecting Nonprofits from Catastrophic Cash Flow Strain Act, to help nonprofits remain financially viable during the COVID-19 pandemic.

Nonprofit & Government Times, July 2020

July 8, 2020

This issue of Nonprofit & Government Times provides you with timely and insightful information.

IRS Issues Proposed Regulations for Taxation of Nonprofit Executive Compensation

By Magdalena M. Czerniawski |  Robert Lyons  |  July 1, 2020

On June 11, 2020, the Treasury Department issued proposed regulations regarding the taxation of nonprofit executive compensation.

Internal Revenue Service Issues Final Regulations on Donor Disclosure Requirements

By Magdalena M. Czerniawski |  Robert Lyons  |  June 8, 2020

After much deliberation, on May 26, 2020, the IRS issued Treasury Decision (T.D.) 9898, which includes final regulations on donor disclosure requirements as well as some technical corrections.

Nonprofit & Government Times, COVID-19 Special Issue

May 29, 2020

This special issue of Nonprofit & Government Times provides you with timely and insightful information related to the COVID-19 outbreak.

Tips to Help Organizations Stay Financially Healthy and Connected to Their Stakeholders

By Hope Goldstein  |  May 27, 2020

Helpful tips that may increase contributions during these uncertain times.

Ensuring Grant Compliance in the Wake of COVID-19

By John D'Amico |  Joseph J. Kanjamala  |  May 27, 2020

Timely and clear guidance is necessary for recipients of federal financial assistance to comply with the terms and conditions of these awards.

Charitable Contributions Enhancement Under the CARES Act

By Magdalena M. Czerniawski  |  May 27, 2020

The recently enacted CARES Act includes provisions directly impacting the nonprofit community.

CDFI: Best Practices in Liquidity Management During the COVID-19 Pandemic

By XiXi Dong  |  May 27, 2020

CDFI lenders are facing greater than ever liquidity risk due to the COVID-19 pandemic.

Are the SBA Loans Provided Under the CARES ACT Subject to Single Audit?

May 6, 2020

In response to the COVID-19 pandemic, the SBA has been providing loans to for-profit and nonprofit entities.

Guidance for Applying ‘Silo’ Rules to Unrelated Business Taxable Income

By Magdalena M. Czerniawski |  Robert Lyons  |  April 28, 2020

On April 23, 2020, the Treasury Department issued proposed regulations for applying UBTI "silo" rules for tax-exempt organizations.

IRS Extends Tax Deadlines for Nonprofits

April 13, 2020

On April 9, the IRS issued Notice 2020-23 providing an automatic extension for Forms 990, 990-PF and 990-T.

When is My 990 Form Due?

April 3, 2020

Does the extension of income tax return deadlines and related payments until July 15, 2020 apply to nonprofit tax filings?

7 Ways CARES Act Financially Supports Nonprofits

By Sibi B. Thomas  |  March 30, 2020

Sibi Thomas, Partner in Marks Paneth’s Nonprofit, Government & Healthcare Group, examines seven ways the $2.2 trillion stimulus bill provides assistance concerning donations and operational revenue for nonprofits.

How Does Your Nonprofit Prioritize During a Crisis?

By Hope Goldstein  |  March 30, 2020

During these unprecedented times, what are the priorities for nonprofit organizations already operating with scarce resources? Hope Goldstein, Co-Partner-in-Charge of the Nonprofit, Government & Healthcare Group, discusses how nonprofits should prioritize.

Nonprofit & Government Times, Q1 2020

March 27, 2020

Read the current issue of Nonprofit & Government Times with topics including COVID-19 nonprofit resources, additional revenue sources for nonprofits, educating your board about nonprofit accounting and more.

GASB Statements Effective for the Year Ended December 31, 2019

By Philip Marciano  |  March 26, 2020

Senior Manager Philip Marciano examines the Governmental Accounting Standards Board (GASB) statements effective for the year ended December 31, 2019.

Not-for-Profit Raffles: Don't Gamble with Federal and State Requirements

By Magdalena M. Czerniawski |  Robert Lyons  |  March 26, 2020

Partner Magdalena M. Czerniawski and Director Robert Lyons discuss the federal and state filing requirements that not-for-profits engaging in raffle activities should be aware of.

A Guide to Proper Reporting and Valuation of In-Kind Contributions

By Joseph J. Kanjamala  |  March 26, 2020

Partner Joseph J. Kanjamala discusses the requirement for nonprofit organizations to report in-kind contributions on their financial statements.

Footnote Disclosure Overload

By John D'Amico  |  March 26, 2020

The FASB has had several projects over the years to improve the effectiveness of disclosures in footnotes to financial statements, but it seems that these projects have been somewhat forgotten for nonprofits, writes Partner John D’Amico.

Educating Your Board About Nonprofit Accounting

March 26, 2020

By Matthew Castellano, CPA

Educating your Board about nonprofit accounting is a key way to get more brains from different industries and backgrounds all working toward improving the financial viability of your organization, writes Senior Manager Matthew Castellano.

Additional Revenue Sources for Nonprofits

By Magdalena M. Czerniawski  |  March 25, 2020

Partner Magdalena Czerniawski examines how reduced government funding has led nonprofit organizations to look for alternative revenue sources.

Nonprofit Alert: Proposed Changes to Reporting of Gifts-in-Kind

By Joseph J. Kanjamala  |  February 18, 2020

On February 10, 2020, the Financial Accounting Standards Board (FASB) issued a proposed Accounting Standards Update (ASU) intended to improve transparency around how not-for-profit organizations present and disclose contributed nonfinancial assets, also known as gifts-in-kind. 

Nonprofit Alert: IRS Issues Guidance on Refunds for Paid Qualified Transportation Taxes

By Magdalena M. Czerniawski |  Robert Lyons  |  January 23, 2020

The IRS has issued guidance on the steps nonprofits will need to take in order to claim a refund on taxes paid under Section 512(a)(7), commonly known as the “Transportation Tax.”

Public – Private Partnerships

By Philip Marciano  |  January 10, 2020

The Government Accounting Standards Board (GASB) has addressed issues with the accounting and financial reporting between government and public parties (PPPs) in order to increase efficiency and prevent issues.  

Achieving Efficiencies of the Financial Statement Audit Through IT

January 10, 2020

IT audits are becoming an increasingly valuable tool for nonprofit organizations, as they can help organizations identify critical issues and increase the efficiency of the financial statements audit.

Alternative Financing Methods of Unemployment Benefits for 501(c)(3) Nonprofits: Benefits & Risks

January 8, 2020

By: Ben Jonas

Nonprofit organizations have unique rights when it comes to State Unemployment Insurance programs and can gain better control of their finances by reducing their unemployment benefit expenses.

Protecting Resources While Pursuing your Mission: Marks Paneth’s Annual Nonprofit Industry Update

By Hope Goldstein  |  January 7, 2020

Hope Goldstein, Co-Partner-in-Charge of Marks Paneth’s Nonprofit, Government & Healthcare Group shares key takeaways from Marks Paneth’s annual nonprofit industry update seminar.

Philanthropy Isn’t Dead – An Update on Charitable Giving Post Tax Reform

By Magdalena M. Czerniawski  |  December 26, 2019

People are willing to donate and not just because of the tax benefits. Magdalena M. Czerniawski, Tax Director in our Nonprofit, Government & Healthcare Group examines the impact of the 2017 Tax Cuts and Jobs Acts on charitable contributions.

President Trump Signs Further Consolidated Appropriations Act Into Law

By Magdalena M. Czerniawski |  Robert Lyons  |  December 23, 2019

As expected, President Trump signed into law H.R. 1865 (The Further Consolidated Appropriations Act, 2020) on Friday, December 20, 2019. Two of the law’s provisions have a significant impact on nonprofit organizations.

Bipartisan Support for Repeal of Tax on Nonprofit Transportation Benefits

By Magdalena M. Czerniawski |  Robert Lyons  |  December 18, 2019

A bipartisan tax relief proposal, which includes the repeal of the tax on transportation benefits, passed the U.S. House of Representatives on December 17, 2019 and is expected to be passed by the Senate and signed by the President shortly.

Nonprofit & Government Times, Q4 2019

December 17, 2019

This issue of Nonprofit & Government Times includes timely and practical guidance to help navigate the shifting landscape of charitable giving, implement cutting-edge digital strategies, improve performance and more.

GASB Statements 88 & 89

By Philip Marciano  |  October 1, 2019

Philip Marciano examines changes introduced by GASB Statements 88 & 89.

Is it Time to Update Your Form 990 Compensation Study?

By Magdalena M. Czerniawski  |  October 1, 2019

Considering both the “old” Form 990 and the new tax law, it’s time for organizations to review their policies for establishing compensation and also ensure that the basis for that compensation is still relevant. 

Improving Fundraising Efficiency with Data Analytics

By XiXi Dong  |  October 1, 2019

Data analytics tools can help nonprofits maximize their resources, increase donations and engage and retain donors.

The Taxpayer First Act of 2019: What Exempt Organizations Need to Know

By Magdalena M. Czerniawski  |  October 1, 2019

The Taxpayer First Act of 2019 (“Act”) was signed into law by President Trump on July 1, 2019. It includes several provisions that are important to exempt organizations, as they will bring about filing changes.

Form 990-T Fiscal Year Filers: Why Did I Get This Notice?

By Magdalena M. Czerniawski |  Robert Lyons  |  October 1, 2019

Many nonprofit organizations that fell under the category of 2017 fiscal year filer are receiving an unexpected balance due or refund notices. Tax Director Magdalena M. Czerniawski examines the IRS changes responsible for these notices.

Cryptocurrency: Considerations for Accepting Gifts of Virtual Currency

By Matthew Estersohn |  Sibi B. Thomas  |  September 30, 2019

Bitcoin was invented in 2009 and saw limited use for the first few years of its existence, with transactions limited mostly to novelty purchases and early adopters. The past few years, however, have seen increased growth, with bitcoin transactions now in the hundreds of thousands per day and price volatility that has made national news.

Nonprofit & Government Times, Q3 2019

September 25, 2019

Read the latest issue of our Nonprofit & Government Times newsletter for timely insights into recent IRS changes, cutting-edge digital strategies, considerations for accepting virtual currency and more.

Governmental Accounting Standards Board, Statement 84: Fiduciary Activities

By Philip Marciano  |  July 1, 2019

When people hear the word fiduciary, they associate several different activities with it, but mainly money or financial matters. The word, however, applies to any situation where someone places their confidence and trust in someone else.

Are You Ready for Your Upcoming Single Audit? The OMB Compliance Supplement Can Help

By John D'Amico  |  July 1, 2019

If your organization is subject to a Single Audit under Uniform Guidance, the OMB Compliance Supplement can be a useful resource.

What Does the Landmark Wayfair Ruling Mean to Nonprofits?

By Magdalena M. Czerniawski  |  July 1, 2019

In the wake of the Wayfair ruling, even exempt organizations should be mindful of their sales activities in various states and should aim to know and monitor state sales tax thresholds in order to stay in compliance.

NYC Introduces Higher Indirect Cost Reimbursement for City Contracts

By Joseph J. Kanjamala  |  July 1, 2019

The City of New York Health and Human Services Cost Policies and Procedures Manual is a bold step towards ensuring a reasonable indirect cost rate for New York's provider community.

The Benefits of Storytelling as a Fundraising Tool

By XiXi Dong  |  July 1, 2019

A great story motivates donors to act on their emotions and inspire generosity. Incorporating storytelling can be an effective fundraising tactic to both raise funds and further an organization’s mission.

Nonprofit & Government Times, Q2 2019

June 28, 2019

Read the latest issue of our Nonprofit & Government Times newsletter for practical advice on OMB Uniform Guidance for Single Audits, the impact of the Wayfair sales tax decision, an update on indirect cost rates in New York State and more.

Nonprofit Alert: Change to Nondiscrimination Reporting Policy for Schools

By Magdalena M. Czerniawski |  Robert Lyons  |  May 23, 2019

After forty-four years, one of the Internal Revenue Service’s oldest requirements has passed into history, in favor of an update that recognizes how much more efficiently today’s technology allows us to communicate.

Nonprofit Tax Update: What We’ve Learned About the TCJA Provisions Affecting Exempt Organizations

By Magdalena M. Czerniawski  |  April 2, 2019

Since the enactment of the TCJA, the IRS has issued interim guidance on each of the four provisions directly affecting exempt organizations, providing clarity on the treatment of these provisions and what organizations can expect moving forward.

The Benefits of Obtaining a Federally Approved Indirect Cost Rate

By Raymond M. Blake  |  April 1, 2019

While many social service type nonprofits receive some government funding to operate programs that fulfill their mission, it is often derived from a local government. Nonprofits can also get federal government funding and establish an Indirect Cost Rate through negotiations with their cognizant federal agency.

Nonprofit & Government Times, Q1 2019

March 29, 2019

Read the latest issue of our Nonprofit & Government Times newsletter for insights into increasing operational efficiency, adapting to new accounting standards and complying with changes to tax law.

IRS Issues Interim Guidance on Excise Taxes for Nonprofit Executive Compensation

By Magdalena M. Czerniawski  |  January 9, 2019

On Monday, December 31, 2018, the Internal Revenue Service issued Notice 2019-09 offering interim guidance for nonprofit executive compensation under Section 4960 of the Internal Revenue Code, which imposes an excise tax of 21 percent (or current rate) on remuneration in excess of $1 million and any excess parachute payments paid by an applicable tax-exempt organization to a covered employee.

The Overhead Myth: Finding Better Ways to Measure Nonprofit Performance

By John D'Amico  |  December 20, 2018

The Overhead Myth campaign, started in 2013 by Better Business Bureau’s Wise Giving Alliance, Charity Navigator and GuideStar®, aims to eradicate the practice of judging a nonprofit’s performance primarily on its overhead ratio.

Tax Reform's Impact on Charitable Contributions

By Magdalena M. Czerniawski |  Robert Lyons  |  December 20, 2018

Almost a year ago, the Tax Cuts and Jobs Act (TCJA) brought major tax reform to individuals, for-profit businesses and not-for-profit entities. 

Incorporating Data Analytics Into Your Internal Controls

December 20, 2018

The evolution of technology has demanded that organizations more deeply understand the businesses they operate but has also allowed management to gain this understanding with greater ease and efficiency than ever before.

IRS Issues Guidance for Determining Nondeductible Parking Fringe Benefits

By Magdalena M. Czerniawski  |  December 20, 2018

While two sections of the Tax Cuts and Jobs Act (“the Act”) - Code section 512(a)(6) and Code section 512(a)(7) - have a direct and significant bearing on tax-exempt organizations, very little guidance has been forthcoming since the law was passed almost a year ago.

Nonprofit & Government Times, Fourth Quarter 2018

December 19, 2018

This year has marked many substantial changes to tax law and accounting guidance for the nonprofit and government industries. At the same time, technology and operational issues continue to evolve rapidly. 

Nonprofit Alert: Cuomo Signs Bill Exempting Nonprofits from NY Transportation Tax

By Robert Lyons |  Magdalena M. Czerniawski  |  December 13, 2018

On Friday, December 7, 2018, Governor Cuomo signed into New York law the much-anticipated bill exempting nonprofits who provide pre-tax transportation and parking benefits from the New York State level transportation tax. 

Tips for NFP internal reports

By Sibi B. Thomas  |  November 14, 2018

A not-for-profit should consider the following best practices to ensure that internal financial reports prepared for its board of directors and other governance committees are accurate, timely, and decision-useful.

Changes to Governmental Fund Accounting are on the Horizon

By Warren Ruppel  |  October 2, 2018

The Governmental Accounting Standards Board (GASB) is considering some important changes to the overall financial reporting model originally introduced for use by governments in GASB Statement 34. This is not a complete rewrite of the current financial reporting model, but rather a focus on several areas where the GASB believes potential changes should be considered. 

The Care Coordination Model: A Path to Managed Care

By Joseph J. Kanjamala  |  October 2, 2018

Managed care is a healthcare delivery system that coordinates the provision, quality and cost of care for its enrolled members. Medicaid managed care provides for the delivery of Medicaid health benefits and related services through contracts between a state and managed care organizations (MCOs).

Internal Control Considerations for Automated Systems in Nonprofit Accounting

October 2, 2018

Automation is an evolving trend that has affected nonprofit accounting departments for many years.

GASB Issues Statement Providing Clarity on In-Substance Defeasance of Debt

October 2, 2018

In May 2017, the Governmental Accounting Standards Board (GASB) issued Statement No. 86, Certain Debt Extinguishment Issues. 

Out with the Old and In with the New Financial Reporting Standards for Nonprofits

By John D'Amico  |  October 2, 2018

It has now been twenty-five years since the Financial Accounting Standards Board (FASB) issued Statement of Financial Accounting Standards (SFAS) No. 117, Financial Statements for Not-for-Profit Organizations


October 1, 2018

In the latest issue of the Nonprofit & Government Times newsletter, our industry experts provide guidance on industry changes, such as new accounting standards, managed care implementation, automation and cybersecurity.

Nonprofit Alert: New IRS Guidance on UBTI Silos

By Magdalena M. Czerniawski |  Robert Lyons  |  September 4, 2018

On August 21, 2018, the IRS issued a Notice about new Code section 512(a)(6), which changes the way exempt organizations calculate unrelated business taxable income (UBTI). Each line of business must now be recognized separately, resulting in significant accounting changes and unanswered questions for many exempt organizations, specifically in the areas of partnership interests and net operating losses (NOLs).


August 6, 2018

The results of our Summer 2018 Nonprofit Pulse survey are in! Marks Paneth polled over 200 executives and leaders of nonprofits across the nation, asking for their views on current industry conditions.

New Procurement Thresholds under U.S. OMB’s Uniform Guidance

By John D'Amico  |  August 2, 2018

The OMB recently issued Memorandum M-18-18 that raised the procurement thresholds for micro-purchases to $10,000 and the simplified acquisition threshold to $250,000. 

Nonprofit Alert: Improved Guidance on Grant and Contribution Accounting

By Sibi B. Thomas  |  June 22, 2018

The Financial Accounting Standards Board (FASB) issued a new Accounting Standards Update (ASU) number 2018-08 on June 21, 2018 that clarifies the current accounting guidance on contributions made and received by nonprofit organizations and businesses.

Nonprofit Budgeting: Key Board Roles and Responsibilities and Questions to Ask Prior to Approval

By Hope Goldstein  |  May 29, 2018

The roles different people play in the budgeting process generally depend on the nonprofit’s size, structure, revenue sources and expenditure expectations.

Understanding the Updated Lease Accounting Rules

By Alan Becker  |  May 29, 2018

Updated lease accounting rules have been the subject of numerous exposure drafts, comment periods and rounds of debate by the Financial Accounting Standards Board (FASB) and the accounting industry over the past decade.

Using Effective Ratio Analysis at Nonprofits

By Sibi B. Thomas  |  May 29, 2018

Analyzing key ratios in your nonprofit’s financial statements can be a very useful tool for gaining deeper insight into the organization’s financial condition and evaluating its overall performance, even at the programmatic level. Effective ratio analysis can be used to analyze trends over a period of time, plan for future strategies and measure current financial health.

Compensation Considerations for Attracting and Retaining Not-for-Profit Executives

May 29, 2018

Recruitment efforts in the not-for-profit sector can be especially challenging in today’s near record-low unemployment economy, where professional opportunities abound for competent business executives and limited not-for-profit budgets can make it difficult to compete with the for-profit world.

Introduction to GASB 87 Leases

By Warren Ruppel  |  May 29, 2018

The Financial Accounting Standards Board (FASB) is not the only standard-setting body to address updates to lease accounting procedures. State and local governments and governmental entities need to be aware of a similar standard that was issued by the Governmental Accounting Standards Board (GASB). Similar in concept to the FASB standard (discussed on page 4), GASB 87 Leases contains some significant differences.

GASB’s Guidance for Irrevocable Split-Interest Agreements is Now in Effect

By John D'Amico  |  May 29, 2018

The Governmental Accounting Standards Board (“GASB”) Statement No. 81 Irrevocable Split-Interest Agreements is now in effect for financial statement periods beginning after December 15, 2016 (December 31, 2017 year-ends and thereafter) and should be applied retroactively.


May 25, 2018

In the latest issue of the Nonprofit & Government Times newsletter, our industry experts provide guidance on the budget process, compensation considerations, FASB and GASB updates and more.

Nonprofit Employers Subject to New Tax Requirements for Transportation Benefits

By Robert Lyons  |  May 25, 2018

As nonprofit employers await final guidance from the IRS on the new 21% UBIT on transportation fringe benefits, the best preventative measure to take is in the form of quarterly estimated tax payments, starting on June 15, 2018. Our nonprofit tax directors provide guidance for organizations that are currently subject, or anticipate being subject, to the corporate level tax on transportation benefits.

Nonprofit Alert: IRS Guidance on New Rules for UBIT

By Robert Lyons  |  May 21, 2018

Our nonprofit tax professionals have been monitoring comments coming out of the IRS on the new Unrelated Business Income Tax rules created by the Tax Cuts and Jobs Act. Read more on what not-for-profits can expect in the forthcoming guidance.

NY Charities Win Big in Charitable Gaming Act of 2017

By Robert Lyons  |  March 2, 2018

Like charitable organizations across the nation, charities in New York are constantly reaching out to find new sources of income. These efforts often include raffles and other gaming incentives. In New York, the potential to raise funds through raffles has been extremely limited by a very antiquated set of gaming laws, but that is soon to change.

Tax Reform: A New Reality for Exempt Organizations

February 2, 2018

With the 2017 charitable giving season behind us, many exempt organizations (“EO”s) are concerned that their funding may start to decrease this year and in the foreseeable future as a result of the new Tax Cuts and Jobs Act (hereafter, “the Act”) passed into law on December 22, 2017.

Recognizing the Symptoms of Fraud in Your Nonprofit Organization

By John D'Amico  |  February 2, 2018

“Where there is a will, there’s a way.” The old saying holds true even with employees bent on embezzling funds from their employer – whether directly or indirectly.

Protecting Your Nonprofit from a Cyberattack

By Richard Nathan  |  February 2, 2018

2017 was predicted to be the “year of cyber warfare” by Sure enough, by mid-year, cyberattacks had already doubled the previous year’s totals. Given that an estimated 63% of nonprofits experienced a data breach in 20161, we are likely facing even more devastating statistics for the industry as the results of 2017 are realized.

Using Form 990 as a Marketing Tool

By Robert Lyons  |  February 2, 2018

Unlike a tax return, Form 990 is a public document open for inspection. Currently, the only part not available to the public is Schedule B, which shows contributor information. The rest stands out in all of its glory – which can be good or bad, depending on the organization.

Four Components of Meaningful Internal Financial Statements for Nonprofits

February 2, 2018

At many nonprofits, audited financial statements draw a lot of attention. These are often made publicly available and are scrutinized by management, external auditors, Boards and public stakeholders – such as funding agencies and donors.

The Nonprofit Audit Committee’s Evolving Role

By Joseph J. Kanjamala  |  February 2, 2018

The Audit Committee is an indispensable part of any nonprofit organization’s governance structure. The roles and responsibilities of an audit committee vary from organization to organization. However, as the financial, operational and regulatory complexities of the environment in which nonprofits operate evolve, so must the roles and responsibilities of the Audit Committee. 

The Nonprofit & Government Times, Q1 2018

February 2, 2018

The new year brings a new look to the Marks Paneth nonprofit industry newsletter! This edition of Nonprofit & Government Times provides practical and timely insights from our nonprofit professionals on some of the industry’s biggest issues, such as: the impact of tax reform, recognizing fraud, the audit committee’s evolving role and cybersecurity.

Marks Paneth’s Winter 2017/2018 Nonprofit Survey Results

January 22, 2018

Marks Paneth is pleased to reveal the findings of our Winter 2017/2018 Nonprofit Pulse survey, which gauges the views and expectations of nonprofit executives and leaders across the nation. The survey provides insights into current conditions in the nonprofit sector in the areas of funding, service demand, financial oversight, staff retention and more.

Nonprofit Alert: International Fraud Awareness Week and 10 Signs of Nonprofit Fraud

By Michael McNee |  John D'Amico  |  November 16, 2017

It's International Fraud Awareness Week and Marks Paneth is doing its part to drive awareness!

What You Need to Know About Pass-Through/Subrecipient Relationships Under the Uniform Guidance

By John D'Amico  |  November 3, 2017

In this article, John D’Amico, Director with our Professional Standards Group, outlines the responsibilities of a pass-through entity under “legacy” OMB Circular guidance, as well as a relatively new rule stemming from the 2014 issuance of the Uniform Guidance.

Nonprofit Alert: New FAQs on Uniform Guidance for Federal Awards

By John D'Amico  |  August 28, 2017

Marks Paneth’s Summer 2017 Nonprofit Survey Results

August 1, 2017

Marks Paneth is pleased to reveal the findings of our third Nonprofit Pulse survey, which gauges the views and expectations of nonprofit leaders with organizations ranging from 20 employees to 500 employees. The Summer 2017 survey uncovered the industry’s outlook on funding availability, demand for services, board member effectiveness and other organizational issues.

Amendments to New York Nonprofit Revitalization Act of 2013 are now in effect

By Michael McNee |  John D'Amico  |  July 6, 2017

On November 28, 2016, additional amendments (the “2016 Amendment”) to the New York Nonprofit Revitalization Act of 2013 (the “NPRA”) were signed into the New York Not-for-Profit Corporation Law (“NPCL”). The 2016 Amendment is intended to “improve and make clarifying amendments” in order to “correct certain inconsistencies, and make the statute operate more smoothly and efficiently.”

New rules for telling your financial story

By John D'Amico  |  June 2, 2017

Nonprofits that are at least partially funded through government contracts face two ongoing challenges. One is finding funding for any associated administrative costs that are not covered by the grant. The second is managing cash flow when governmental agencies are notoriously late in reimbursing nonprofits for expenses they have already incurred. It is common for nonprofits to wait three to six months or more for reimbursement. This can result in serious liquidity issues. Combined, these issues often make it difficult for nonprofits to provide potential private donors a true picture of their financial status.

Effective date of OMB’s Procurement Standards extended

By John D'Amico  |  May 25, 2017

On December 26, 2013, the US Office of Management and Budget (OMB) published 2 CFR 200, “Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards” – also referred to as the Uniform Guidance (UG). One of the most significant changes introduced by the UG relates to procurement standards for non-Federal entities.

Nonprofit Agendas - April, 2017

April 20, 2017

Nonprofit Alert: New Filing Requirements for New Jersey Charitable Registrations

By John D'Amico  |  April 10, 2017

New Jersey-based nonprofit organizations are required to file either Form CRI-300R or CRI-200, along with their IRS Form 990 annually. These forms are due to the State of New Jersey on the last day of the sixth month following the close of the organization’s fiscal year.

Ensuring Nonprofit Compliance with the Federal OMB Uniform Guidance and NJ's Circular 15-08 OMB

By John D'Amico  |  March 13, 2017

The federal OMB’s Uniform Guidance requires New Jersey-based nonprofit organizations with fiscal year expenditures greater than $750,000 to have a Single Audit. Organizations that receive new or incremental federal funding either directly from a federal agency or passed-through from the state or a local government after December 24, 2014 need to follow the federal OMB’s Uniform Guidance. For federal grants awarded prior to that date, OMB Circulars (A-110 and A-122 for nonprofits) are still in effect.

The new employee tax credit your organization may be missing out on

By Mordecai Lerer  |  February 28, 2017

Are you familiar with Internal Revenue Service forms 5884, 5884C and 8850? If not, your organization may be missing an opportunity to reduce its federal tax liability from $1,200 up to $9,600 per new hire. The great news is, both “for-profit” and “nonprofit”employers are eligible for the Work Opportunity Tax Credit (“WOTC”).

Nonprofit Agendas - February, 2017

By Michael McNee  |  February 14, 2017

Nonprofit Pulse: A Leadership Survey From Marks Paneth

February 9, 2017

Mark Paneth’s Nonprofit Pulse collects the opinions of nonprofit leaders twice a
year. Findings from the Summer/Fall 2016 survey provide insights into the impact of
funding challenges on meeting demand for services, attracting and retaining staff
and the financial stability of organizations facing funding gaps.
The majority of respondents are senior leaders of human-service nonprofits
operating in the US, including executive directors, CEOs, CFOs, board members, and

New Liquidity Disclosure Requirements for Nonprofits

By Sibi B. Thomas  |  January 23, 2017

Under the Financial Accounting Standards Board’s new financial reporting standards for nonprofits released on August 18, 2016, nonprofit organizations are required to provide enhanced disclosures about the liquidity and availability of its resources in the audited financial statements. The disclosures must be both qualitative and quantitative in nature.  

Nonprofit Agendas - October, 2016

By Michael McNee  |  October 7, 2016

Nonprofit Agendas - July, 2016

By Michael McNee  |  July 19, 2016

Marks Paneth has published the latest issue of Nonprofit Agendas.

Tips for improving the quality of your nonprofit’s audit

By Sibi B. Thomas  |  June 8, 2016

Audit quality is one of the most discussed topics in the accounting and auditing profession. Audit quality involves both qualitative and quantitative elements, some of which are not easily measurable. It is subjective and viewed differently by different stakeholders based on their expectations and perceptions. It’s important for all the involved stakeholders to align their expectations in order to produce a quality audit.

Nonprofit Agendas - May, 2016

By Michael McNee  |  May 4, 2016

Marks Paneth has published the latest issue of Nonprofit Agendas.

FASB Project on Not-for-Profit Financial Reporting

By John D'Amico  |  April 21, 2016

New Accounting and Auditing Matters on the Horizon -- The FASB is moving forward with the proposed ASU Presentation of Financial Statements of Not-For-Profit Entities. The proposed changes are considered to be the most sweeping changes since 1993.  After receiving 264 comment letters and holding three public roundtables, which representatives of Marks Paneth LLP participated in, the FASB Board decided to separate the project into two phases. This summary provides useful information on the changes which lie ahead.

Nonprofit Agendas - March, 2016

By Michael McNee  |  March 2, 2016

Marks Paneth has published the latest issue of Nonprofit Agendas.

Nonprofit Revitalization: Checklist for Compliance

By Michael McNee  |  February 24, 2016

New York State has a law pertaining to nonprofits called the Nonprofit Revitalization Act of 2013. It was signed by Governor Cuomo on December 18, 2013 and most provisions were effective on July 1, 2014. Marks Paneth has developed a self-administered checklist you can use to help with the process of verifying compliance for your organization.


Monitoring your organization’s fiscal health to avoid financial failure

By Sibi B. Thomas  |  January 8, 2016

When considering the myriad of challenges the nonprofit sector faces today, it is important that nonprofit leaders take a holistic approach to understanding the factors affecting their organizations' financial viability. There are several tools and specific approaches to nonprofit governance that can greatly facilitate this undertaking. 

In this article, Partner Sibi Thomas discusses give factors that nonprofit leaders should consider to better secure their organizations against financial mismanagement and organizational risk.

This article was originally published in New York Nonprofit Media in January 2016.

Nonprofit Agendas - December, 2015

By Michael McNee  |  December 8, 2015

Marks Paneth has published the latest issue of Nonprofit Agendas.

Nonprofit Pulse: A Leadership Survey from Marks Paneth

By Michael McNee  |  October 28, 2015

Marks Paneth is proud to service many leading nonprofits.  To gain insights that will be useful and interesting to these organizations, and to help us meet their audit and other business needs, we regularly survey the leadership to top nonprofits around the country.  Topics span a range of issues organization leaders face or are concerned about.

Our most recent survey of nonprofit chief executives officers, executive directors, presidents, chief financial officers and board members was fielded during the second half of 2015.

Nonprofit Agendas - October, 2015

By Michael McNee  |  October 7, 2015

Marks Paneth has published the latest issue of Nonprofit Agendas.

FASB Roundtable on Proposed Nonprofit Accounting Standards

By Michael McNee  |  September 28, 2015

Marks Paneth was invited to attend one of two FASB roundtable meetings held on September 21 to discuss our views with the FASB Board and their technical managers on the Proposed Accounting Standard update (exposure draft) which suggests major revisions to the way nonprofit financials will look in the future.

Minimum Distribution Requirements for Private Foundations

By Robert Lyons  |  September 18, 2015

Every year, private, non-operating foundations are faced with determining their minimum investment return in order to calculate their distributable amount. For calendar year 2014, the distributable amount is the amount that the foundation must pay out as a qualifying distribution by the end of 2015 to avoid the 30% excise tax on the undistributed portion.

In this article, director Robert Lyons provides foundation administrators with technical guidance around the appropriate timing of and planning that should go into the distributable amount’s payout.

Developing a Fraud-Free Workplace for the Nonprofit Organization: A Fresh Perspective

By Eric A. Kreuter |  Hope Goldstein  |  September 16, 2015

Fraud is a significant and growing problem for nonprofit organizations, according to a number of sources, occurring more frequently and becoming more costly. According to the 2014 Report to the Nations by the Association of Certified Fraud Examiners (ACFE), nonprofit fraud accounted for 10.8% of total incidents of fraud in 2013, up from 9.6% reported in 2010. Nonprofit organizations lost a median $108,000 per incident in 2013, up from $90,000 reported in 2010. Since many nonprofits are relatively small, the financial impact is often far greater than the dollar amount implies. 

This article by Eric Kreuter, partner, Financial Advisory Services, and Hope Goldstein, partner, Nonprofit and Government, reviews the risks (financial, reputational and funding threats), fraud’s origins and the steps an organization should take to strengthen its control environment.

Nonprofit Agendas - August, 2015

By Michael McNee  |  August 14, 2015

Marks Paneth has published the latest issue of Nonprofit Agendas

Uniform Guidance (Formerly A-133) for Federal Award Programs

By Michael McNee  |  June 26, 2015

The Office of Management and Budget recently published Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. This guidance supersedes several OMB Circulars that govern federal awards, including the Circulars that affect non-profits, such as Circular A-110 and A-122. These new regulations are commonly called “Uniform Guidance” or “UG”.

Nonprofit Agendas, April 2015

By Michael McNee  |  April 21, 2015

Marks Paneth has published the latest issue of Nonprofit Agendas

Executive Summary: Exploring the Financial and Governance Ingredients for Nonprofit Stability

By Michael McNee  |  April 2, 2015

Executives from the nonprofit world convened at Marks Paneth recently for a seminar co-sponsored by Charity Navigator, a nonprofit charity watchdog group. Using the financial collapse of the Federation Employment and Guidance Services (FEGS), as a backdrop, the seminar explored issues related to fraud, governance, reporting transparency and operational sustainability – and underscored practices and safeguards that can protect nonprofits.

Nonprofit Pulse: A Leadership Survey from Marks Paneth

By Michael McNee  |  March 30, 2015

The Nonprofit Pulse: A Leadership Study from Marks Paneth represents the findings of a survey of nonprofit leaders in the United States. The 103 professionals participating in the research include Board Chairs, Presidents, Executive Directors, Chief Executive Officers, Chief Financial Officers, Treasurers, Chief Operating Officers, Development Directors, Vice Presidents and Board members and are with organizations with annual budgets between $10 million and $100 million. The research employed self-administered questionnaires completed online by respondents. The national list of professionals surveyed was compiled by Marks Paneth LLP, the research sponsor, and by Michaels Opinion Research. Interviews were completed during the period of November 12 to December 31, 2014.

Marks Paneth Nonprofit Agendas, February 2015

By Michael McNee  |  February 13, 2015


By Michael McNee  |  December 4, 2014


By Michael McNee  |  October 27, 2014

Marks Paneth has published the latest issue of Nonprofit Agendas. Click below for the October issue


By Michael McNee  |  September 17, 2014

Marks Paneth has published the latest issue of Nonprofit Agendas. Click below for the September issue

Marks Paneth Nonprofit Agendas July 2014

By Michael McNee  |  July 28, 2014

Marks Paneth has published the latest issue of Nonprofit Agendas. Click below for the July issue

Accounting and Auditing Alert: FASB Private Companies Have Options on Accounting for Goodwill

By William M. Stocker III  |  February 24, 2014

The Financial Accounting Standards Board {FASB) has issued two updates to Generally Accepted Accounting Principles (GAAP) that offer alternatives to private companies: Accounting Standards Update (ASU) 2014-02, Intangibles—Goodwill and Other (Topic 350): Accounting for Goodwill, and ASU 2014-03, Derivatives and Hedging (Topic 815): Accounting for Certain Receive-Variable, Pay-Fixed Interest Rate Swaps—Simplified Hedge Accounting Approach. The alternative standards streamline the method for goodwill impairment and make it easier for certain interest rate swaps to qualify for hedge accounting. This alert details each ASU.

Marks Paneth Nonprofit Agendas February 2014

By Michael McNee  |  February 19, 2014

Marks Paneth has published the latest issue of Nonprofit Agendas. Click below for the February issue

NonProfit Agendas, November 2013

By Michael McNee  |  November 25, 2013

Marks Paneth has just published the latest issue of Nonprofit Agendas. Click below for the November issue.

Nonprofit Agendas, September 2013

By Michael McNee  |  September 19, 2013

Marks Paneth has just published the latest issue of Nonprofit Agendas. Click below for the September issue.