10 tips to build financial literacy within a nonprofit
Build your nonprofit’s financial literacy and get back on track. Here are 10 tips from top virtual accounting pros.
The Corporate Transparency Act (CTA) and Its Impact on Nonprofits in 2024
The Corporate Transparency Act (CTA), which came into effect on January 1, 2024, represents a significant shift in the regulatory landscape for U.S. businesses, including any non-exempt nonprofit organizations such as churches and charitable organizations. The implementation of the Corporate Transparency Act marks a pivotal moment in the fight against financial crimes, signaling a concerted effort to strengthen accountability and integrity within the business and nonprofit sectors. This legislation aims to enhance financial transparency and combat illicit activities by requiring certain entities to report beneficial ownership information to the Financial Crimes Enforcement Network (FinCEN). By mandating the disclosure of beneficial ownership details, the CTA seeks to create a more transparent environment that deters illicit activities and promotes a culture of compliance across diverse entities operating within the United States. What Nonprofits Need to Know Exemptions for Nonprofits If your nonprofit has applied for 501(c) status but has not yet received it, you could potentially be subject to reporting requirements under the Corporate Transparency Act (CTA). Nonprofits with an active 501(c) status, political organizations under Section 527(e)(1), or charitable or split-interest trusts are exempt from the CTA's reporting requirements. This broad exemption covers a wide range of nonprofit organizations, including most charities, schools, religious organizations, private foundations, social welfare organizations, labor organizations, trade associations, chambers of commerce, and social clubs. It's important to note that the exemption applies without regard to whether the organization has filed an application for recognition of tax-exempt status pursuant to IRC 508(a) Implications for Noncompliant Nonprofits Nonprofits that do not meet the exemption criteria must comply with the CTA's reporting requirements. Examples of Noncompliant Nonprofits Defective Drafting: Nonprofit organizations with defective drafting of their Articles of…
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!
Nonprofit Accounting 101: Essentials for Navigating Your Nonprofit’s Books
Beyond the federal requirements and day-to-day accounting needs, your finances fuel the change you want to make in the world.
The Rise of Remote Work in Accounting: Adapting to Change
Delve into the growing prevalence of remote work in the accounting industry, encompassing technological advancements, providing financial advice for remote workers, and integrating tech tools for smooth operations.
What is Financial Stability for Nonprofits and Why is it Important?
There are many reasons why nonprofits struggle to stay financially stable, but even more reasons they should strive for that stability.
5 financial best practices every nonprofit should know in 2023
With a looming recession tightening up our budgets, here are the 5 financial best practices that every nonprofit should know in 2023.
Why you shouldn’t be afraid of a nonprofit audit (and how your virtual CPA can help)
Dreading that audit? Here’s how your nonprofit can be audit ready with peace of mind.
What Can Nonprofits Learn From Patagonia’s $3 Billion Gift?
Patagonia’s recent gift to a nonprofit organization committed to fighting climate change has many other nonprofit’s questioning how and why this particular nonprofit was the chosen one. Read on to discover a few important takeaways from Patagonia’s $3 billion gift as we approach a new year of business:
Here Are The Biggest Myths About Outsourced Bookkeeping To Watch Out For
Budgeting and forecasting require time. Finding someone within your organization with the ability to look at data and strategically plan for your ministry’s future profit and loss can be difficult. If you don’t have the time, resources, or understanding to tackle this job on your own, an outsourced bookkeeper can be an easy solution. Let’s debunk a few myths before you decide: