Nonprofit Growth

Read more about the article A Brief History of FASB Standards for Nonprofits

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…

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Read more about the article Guiding Your Nonprofit’s Future: Mastering the Art of Financial Forecasting

Guiding Your Nonprofit’s Future: Mastering the Art of Financial Forecasting

Unlock the power of nonprofit financial forecasting with Temple Management Consulting. Gain insights and strategies for sustainable decision-making, risk mitigation, growth planning, and enhanced financial health. Learn how to navigate the complexities of data collection, assumptions, forecasting methods, and the importance of feedback. Chart your organization's secure financial future today.

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Read more about the article Back-to-School Budgeting: Aligning Church Finances with Educational Initiatives

Back-to-School Budgeting: Aligning Church Finances with Educational Initiatives

As the back-to-school season approaches, churches have a unique opportunity to positively impact their communities by aligning their financial resources with educational initiatives. This article aims to highlight the importance of strategic financial planning for church leaders, emphasizing how such efforts can support educational programs that benefit students and families in need.

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Read more about the article Leveraging AI to Transform Nonprofit Finances: Enhancing Efficiency and Accuracy

Leveraging AI to Transform Nonprofit Finances: Enhancing Efficiency and Accuracy

AI revolutionizes nonprofit finances by automating tasks, enhancing analysis, detecting fraud, optimizing costs, and empowering informed decision-making for social impact.

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Read more about the article Overcoming the Limitations: Challenges of Using Off-the-Shelf Accounting Software for Nonprofits

Overcoming the Limitations: Challenges of Using Off-the-Shelf Accounting Software for Nonprofits

While off-the-shelf accounting software may seem like a cost-effective solution, it often falls short in meeting the specific requirements of nonprofit organizations, leading to various challenges. These generic systems typically lack the specialized features necessary for detailed fund tracking, grant management, and reporting that nonprofits require. As a result, organizations may face difficulties in maintaining financial transparency, reporting accurately to stakeholders, and ultimately, in achieving their mission effectively.

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Read more about the article It’s been three years since COVID-19 hit. How have nonprofit finances changed?

It’s been three years since COVID-19 hit. How have nonprofit finances changed?

It’s been three years since the COVID-19 pandemic “stopped the world.” In its wake, we have seen a significant, foundational impact on economies worldwide — and the nonprofit sector is no exception. From reduced funding and flat budgets to a surge in demand for services, nonprofits were challenged to adapt and rebuild on a massive scale. Even now, after the pandemic has seemingly faded into the past like a bizarre alternate reality, nonprofits are still feeling pressure from the impact of inflation on donors, in the ending of much emergency federal financial support, and in the scarcity of available (or retainable) talent. In this blog post, we'll explore a few pieces of how nonprofit finances have changed in the past three years since the pandemic, and what long-term effects you can consider as you navigate your own nonprofit’s finances. It’s been three years since the COVID-19 pandemic “stopped the world.” In its wake, we have seen a significant, foundational impact on economies worldwide — and the nonprofit sector is no exception. From reduced funding and flat budgets to a surge in demand for services, nonprofits were challenged to adapt and rebuild on a massive scale. Even now, after the pandemic has seemingly faded into the past like a bizarre alternate reality, nonprofits are still feeling pressure from the impact of inflation on donors, in the ending of much emergency federal financial support, and in the scarcity of available (or retainable) talent.

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Read more about the article Do you know the nonprofit filing requirements this tax season? 

Do you know the nonprofit filing requirements this tax season? 

Tax season is here. Is your nonprofit ready? Let’s go over the basics of nonprofit filing so you can confidently file returns in 2023!

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