Simplified Notices of Funding Opportunity (NOFO) and Their Impact on Nonprofits

In the ever-evolving landscape of nonprofit funding, federal grants remain a crucial lifeline for organizations striving to make a difference. Recently, a significant shift has occurred in how these funding opportunities are presented, with the introduction of simplified Notices of Funding Opportunity (NOFOs). This change promises to reshape the way nonprofits approach and secure federal funding, potentially opening doors for a more diverse range of organizations.

Continue ReadingSimplified Notices of Funding Opportunity (NOFO) and Their Impact on Nonprofits

Changes in Single Audit Requirements and Thresholds: What Nonprofits Need to Know for 2025

Learn about the new $1 million Single Audit threshold for nonprofits starting in fiscal year 2025. Understand how these changes impact your organization and how to prepare for the updated requirements.

Continue ReadingChanges in Single Audit Requirements and Thresholds: What Nonprofits Need to Know for 2025

A Brief History of FASB Standards for Nonprofits

In 1993, FASB introduced SFAS 116 and 117. These standards revolutionized nonprofit financial reporting. They established guidelines for contribution recognition and financial statement presentation. For over two decades, these standards served as the backbone of nonprofit accounting. SFAS 116 focused on accounting for contributions received and made. It provided clear guidance on how to recognize and measure contributions, including distinguishing between conditional and unconditional promises to give. This standard significantly improved the consistency and comparability of contribution reporting across nonprofit organizations. SFAS 117 addressed the presentation of financial statements. It introduced the concept of three classes of net assets: unrestricted, temporarily restricted, and permanently restricted. This classification system helped users of financial statements better understand the nature and extent of donor-imposed restrictions on a nonprofit's resources. However, the nonprofit sector has changed dramatically since 1993. New challenges and complexities emerged. The rise of social enterprises, increased scrutiny from donors and regulators, and the growing importance of impact measurement all contributed to a need for updated accounting standards. FASB recognized the need for updated standards to reflect these changes and better serve the evolving needs of nonprofit organizations and their stakeholders. Introducing ASU 2016-14: The New FASB Standards In August 2016, FASB released Accounting Standards Update (ASU) 2016-14. This update aims to improve nonprofit financial reporting. It became effective for fiscal years beginning after December 15, 2017. The new standards represent a significant shift in nonprofit financial reporting, addressing many of the challenges and limitations of the previous standards. Key Changes in ASU 2016-14 Net Asset Classification for Nonprofits ASU 2016-14 simplifies net asset classification. It reduces the categories from three to two: Net assets with donor restrictions Net assets without…

Continue ReadingA Brief History of FASB Standards for Nonprofits

Ready to Tell Your Story? 3 Tips for Impactful Storytelling to Attract and Retain Support for Your Nonprofit

As a nonprofit, it’s important to utilize stories so that donors and supporters feel connected to the mission and can see the impact your organization has in the world.

Continue ReadingReady to Tell Your Story? 3 Tips for Impactful Storytelling to Attract and Retain Support for Your Nonprofit