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Not-for-Profit Edge

Insights from Not-for-Profit’s Accounting and Auditing Update 2011

Blackman Kallick’s Not-for-Profit professionals recently hosted a seminar to discuss tax and accounting updates that will affect not-for-profit organizations. The seminar discussed a variety of topics including ways to improve reporting on the 990, latest tax developments, measuring fair value...

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Benefits of Conducting a Fraud Risk Assessment

Fraud is a risk to every organization whether large or small. Organizations should periodically assess their potential exposure to fraud and whether their exposure is mitigated through their internal controls. As auditors, we are often asked: we are often asked:...

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A Formula for Sustainable Spending

Today’s harsh economic climate has challenged nonprofit spending like never before. While investment-portfolio values may still be depressed from the financial crisis, spending needs are greater than ever. Continuing to spend at previous levels may appear unsustainable, but cutting spending...

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Board Minutes — Back to the Basics

Board minutes can vary greatly from organization to organization. Some minutes contain a great deal of detail, while others leave the reader wondering what actually happened at the meeting and whether any decisions were made.  Minutes document a chronology of...

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FASB Adds Two Not-for-Profit Agenda Projects

The Financial Accounting Standards Board (FASB) announced two agenda projects—a standard-setting project and a research project—intended to improve financial reporting of not-for-profit organizations. These projects are drawn from suggestions received at the FASB’s Not-for-Profit Advisory Committee’s September 2011 meeting. In...

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IRS Announces Voluntary Program to Reclassify Workers as Employees

Many organizations have workers whom they would classify as independent contractors but whose actual status per IRS rules is that of an employee. If the IRS audits a company and reclassifies workers from independent contractor to employee status, the company...

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Executive Summary: Certification — Same Activity, Different Result

Certification of products and processes is ever present in US business. Certifications are typically carried out by tax-exempt Section 501(c)(3) and Section 501(c)(6) organizations. When Section 501(c)(3) organizations carry out certifications, the income is often subject to unrelated business income....

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Illinois Department of Human Services Financial Reporting Requirements Have Changed for FY2011

In an effort to reduce the number, variety, and redundancy of financial reports required of community service providers, Illinois Department of Human Services (DHS) has replaced the grant report and consolidated financial report (CFR) with an Annual Financial Report (AFR). ...

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A Survey Reveals Continued Increase in Demand for Nonprofit Services

 A recent survey conducted by the Nonprofit Finance Fund (NFF) of more than 1900 nonprofit leaders nationwide revealed that continuing increases in demand for services have spread many organizations thin. NFF’s “2011 State of the Sector Survey” found that nonprofits have seen...

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Recognize and Celebrate Cumulative Giving

Nonprofit organizations looking to expand their planned-giving prospects or simply boost contributions should not underestimate the power of cumulative giving. At a time when resources are stretched, organizations often focus their development efforts on major donors. Cumulative giving over time...

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Audit Committee Self-Evaluations

Performance evaluations are an important tool to help organizations assess their effectiveness against established metrics. Many not-for-profit organizations spend a great deal of time and resources monitoring and evaluating the performance of their programs, finances, employees, and vendors. However, when...

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Blackman Kallick's Not-for-Profit Seminar: Fraud Detection and Prevention for Not-for-Profit Organizations

On April 20, 2011, Martin Terpstra, Blackman Kallick's partner-in-charge of the Forensic and Litigation Services Practice, hosted a seminar focusing on fraud detection and prevention methods for not-for-profit organizations.

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Effective Dashboards for Not-for-Profit Boards

If you have ever attended a board meeting, you have likely seen your fair share of those big three-ring binder “board books” which contain all the information needed for the meeting. The volume of financial information that the board is...

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Nonprofits Need Innovative Thinking to Survive the “New Normal”

With 2009 in the rear-view mirror and the economy showing some signs of recovery, many charitable organizations are not doing enough to weather what is expected to be a tough 2010. Too much complacency: that is the consensus Ian Wilhelm...

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Online Donation Portals Ease Contributions, Receipt Process

Online giving makes it easier to donate to your not-for-profit, which encourages more giving. And, partnering with another organization to handle back-office donations frees you to focus on your main mission.Partnering upMany 501(c)(3) organizations are finding that it makes sense...

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Measuring Fair Value: New Accounting Rule to Affect Unusual Investments and More

Expect to have your hands full this year as you apply a new accounting standard to financial assets and liabilities that require fair value accounting. Also plan to be particularly busy if your not-for-profit has alternative investments such as hedge...

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Strength in Numbers: Merging with Another Not-for-Profit Takes Diligent Preparation

Shrinking federal funding, stiff competition for grants and a soft economy all challenge a not-for-profit's existence, which has given rise to mergers and other strategic alliances. At times like these, common sense might point to pooling organizational resources and eliminating...

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Ten Ways (Other Than Salary) to Tickle Employees

As a not-for-profit, you might be known for the rewarding work and amiable environment you offer employees. But this slice of the labor market isn't known for its lavish salaries or cushy benefit packages. Still, it doesn't always take a...

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“Reasonable belief” employed to assess tax status complaints

Have you wondered how the IRS handles complaints challenging a not-for-profit's tax-exempt status? Here's what happens, according to new IRS Fact Sheet 2008-13, issued in February 2008:After the party complaining submits Form 13909, the complaint—also innocuously called "a referral"—is sent...

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GuideStar.org: Be there or be square?

Although it's been around for quite awhile, GuideStar.org keeps growing in popularity and in the ways it's used.The Web site now lists information on the programs and finances of more than 1.7 million recognized not-for-profits, according to GuideStar. And, the...

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Keep Baby Boomer Volunteers Challenged

Smart not-for-profits are putting some findings of a federal study on retaining baby boomer volunteers into action. The "Keeping Baby Boomers Volunteering" study, published by the Corporation for National and Community Service (CNCS), spotted some interesting patterns:Baby boomer volunteers who...

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FASB Ruling Could Impact Not-for-Profits with Unrelated Business Income

Even if your not-for-profit is considered tax-exempt, it still might need to comply with a new accounting rule on uncertainty in income taxes.The Financial Accounting Standards Board (FASB) Interpretation No. 48, “Accounting for Uncertainty in Income Taxes (FIN 48)”—effective for...

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Changes Impact How You Act on Deficiencies in Controls

A number of federal rule changes are likely to affect your next audit—including the way an auditor evaluates and reports on deficiencies in a not-for-profit’s internal controls.Among revisions to the General Accounting Office (GAO) Government Auditing Standards, often referred to...

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Planned Giving Vehicles Provide Reliable Income Streams

You are well aware of the importance of charitable contributions to your not-for-profit. But, do you know the value of planned giving and the vehicles that donors can use to help both you and them?Planned giving lets your organization do...

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Taking the Right Steps to Find Your Dream Bookkeeper

Looking for the perfect bookkeeper for your not-for-profit is something like looking for an ideal mate. You'll want to think hard about your organization's needs before you start searching for, and commit to, the person who will handle your day-to-day...

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2008 Seeing a Bumper Crop of “Do-Not-Mail” Legislation

Proponents of direct mail, which includes much of the correspondence your not-for-profit generates, are busy fighting battles this year in several states where "do-not-mail" initiatives have been added to legislative agendas. Hawaii, Michigan, New York, North Carolina, Rhode Island, Vermont...

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Combating the Certainty of Higher Postal Rates

The only sure things in life, they say, are death and taxes—but some would add higher postage costs to that list.If you’re sending anything larger than a standard letter (annual reports, conference brochures, membership appeals, donation solicitations, etc.) via the...

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SOX Interpreted for Not-for-Profits

You should run a not-for-profit like any business—with meaningful strategic planning, sound risk management and a carefully crafted leadership team. That’s the theme of Nonprofit Strategic Planning: Leveraging Sarbanes-Oxley Best Practices by Peggy M. Jackson, released in September by John...

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Fundraising by Multiplication Tables Not Adding Up

One common mistake among those new to not-for-profits is trying to reach a fundraising goal by dividing it by the number of likely donors and then asking everyone to contribute the same amount.So says the not-for-profit resource, GuideStar, which asserts...

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This publication is part of Blackman Kallick’s marketing of professional services, and is not written tax advice directed at the specific facts and circumstances of any person and/or entity. Contents of this publication are of a general nature, and you should not act on this information without obtaining professional advice from your business advisor that is appropriately tailored to your individual needs and circumstances. This written advice is not intended or written to be used, and cannot be used by any taxpayer, for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code.