Hughey's Debits & Credits: Bookkeeping. Payroll. Taxes.

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During year endNonProfits Review-Year End Checklist- Accounting-Nonprofits-Hugheys Debits & Credits, we all need help remembering what all is required of us or is it just me? This checklist is to help my fellow Nonprofit Accountants remember what’s needed to close out the year. Follow this checklist to save time so you can spend it with your family during the holidays!

 

We strive to make your life easier, so if you would like this checklist in PDF form, click hereContact us today to assist you with your Nonprofit needs.

-Ronda

 

Checklist 2It’s crunch time! The holidays are here and you are scrambling trying to decorate, plan parties, and hide gifts. Oh wait! You still have to close out the calendar year for your NonProfit! Let us make it easier with a end of the year to-do list!

  1. Federal Reporting – IRS Form 990 is the NonProfit version of Form 1040. It is an annual report required to filed by all 501(c)3 organizations. The form is due 5 ½ months after the end of your fiscal year. For example, if your fiscal year end is September 30, your form would be due February 15. 
  2. Grant Reporting – It is the end of quarter four (two if you are on a fiscal year end of 6/30) and grant contracts require certain reports to be filed to see the financial status of the grant. Ensure each grant is separated financially per state requirements.
  3. State Reporting – There are state specific filing requirements through the Secretary of State such as Charitable Solicitation renewal as well as the Annual Report. You can check your deadlines here.
  4. Donor Appreciation – This is the season of fundraising and you are wrapping up your year-end campaign, don’t forget to send a thank you to those you took the time to support your cause! I know each of you have done this because you read our previous blog “Does My Donation Matter?” If not, read it here.
  5. Board Updates – Use the holiday season to capitalize on all the great ideas your board will have about next year’s agenda. Also take time to review board members, agency policies, review and approve financial items like budgets and financial statements, and create a strategy how to further achieve your mission! Read more

When we work with our NonProfit clients, one of the biggest struggles they face is properly accounting for cost allocation. 

From staff to board members, we often find a lack of detail and planning when it comes to cost allocation. What you don’t know CAN indeed hurt your organization when it comes to State Agency approval.

Let’s talk about why you need to have a deep understanding of this process.  We never want an organization to lose their state funding, risking everything for lack of accountability.

Cost Allocation: What Does That Mean?

Cost allocation is an accounting method used to determine cost to cost objects. In nonprofit accounting, it is used to determine the percentage of shared items that should be billed to each program. Read more

Are You Giving Back? 3 Tips on How to Give While Protecting Your Budget

As we all give thanks for our loved ones and the blessings in our lives, we want to take a moment to give back by thanking our clients because we consider you family. The relationships we have developed are based on care, trust and dedication to growth.  We are so very thankful and wish you and your family success and well-being.

As we move into the season of joy, praise and giving, we leave you with three tips for navigating the holidays successfully: Read more

Employee or Contractor?

One of the largest expenses in your nonprofit is payroll and all that goes with it. In addition to payroll, you also have to pay payroll taxes, unemployment, leave, insurance benefits, and training.

On more than one occasion, a client has wanted to switch an employee to an independent contractor in order to save money. However, that decision is not mine or even yours to make. The Internal Revenue Service (IRS) determines the difference here in a more extensive definition while the Department of Labor only uses 6 determining factors here.

Like my clients, I am sure you do not have time to research the difference or read the monstrous qualifications detailed by the IRS. Therefore, I am going to give you my version of the difference in these top 3 points: Read more

Every Nonprofit is required to have a board. It should be easy to find people who believe in your mission and want to assist your organization, right?

Well let’s focus on who makes up your board. Most boards are comprised of business owners, leaders, and executives of the community. They’re busy people and their time and attention is in high demand. You want these types of people on your board because they don’t require a lot of hand holding.

How do you keep your proactive board focused and involved so you stay at the top of the priority list? Read more

Your mission is to serve the community. Without money, you cannot achieve this goal.  You work hard to be awarded grants for your organization, and your mission is going great!

Fast forward in time to where the State is late reimbursing you on the funds you spent for the grants last month. Due dates for your organization’s bills are getting close and still no reimbursement. As an Executive Director or Board Member, you want to achieve your organization’s mission so you move some money around to ensure that the bills are paid and everything continues to flow as smoothly as possible.

Read more

 

Last week, we discussed the importance of making your donors feel appreciated. Today, I would like to talk about the importance of annual donors vs. monthly donors. Every year, you and your staff gear up for that one large fundraiser. It’s your huge money maker! Every year, you get out your donor list from the previous year and you call and invite them to this year’s event. For this example, let’s say annual donations total $100,000 for this fundraiser. What if you could increase that amount by 20%? You can and here’s how:

Read more

Donation Matters

WHAT you do after you have your donor’s check in hand matters more now than ever before.

Why?  Donors want to feel a part of your mission and they want transparency.

What happens next?

Someone from your office mails them a generic thank you card saying their donation was appreciated and is tax deductible.  Good enough?  Not even close.

Read more

Why do we specialize in Nonprofit accounting?

After serving as the fiscal officer in a nonprofit, Ronda understands how these organizations are the heart of our communities. The people and volunteers that work in nonprofit organizations give themselves tirelessly to the causes and people that they serve.

Most non profits operate with stretched resources, limited administration and operations overhead and every employee wears many hats.

Read more