Ostrow Reisin Berk & Abrams, Ltd.

If your not-for-profit organization receives Federal awards, you will need to determine whether your entity is a recipient, a subrecipient or a vendor.   By following the guidelines established by the Office of Management and Budget (OMB) in Circular A-133 below, you should be able to make the determination. Recipient or Subrecipient Guidelines A Federal payment… Continue reading »

This week’s blog discusses one study that examines the effects of political leanings on donor behavior, and another that reveals a significant drop in multiyear grants to charities.

One of the building blocks of a strong not for profit organization is an active Board of Directors who can support the organization in many ways – financially, with their time, and with the skills the members possess, both personally and professionally. While organizations should take full advantage of the resources their Board provides, they must also recognize that those resources won’t always be available.

In a time where funding is scarce, fraud is proving to be devastating to not-for-profit organizations and the communities that they service. According to the 2012 Report to the Nations on Occupational Fraud & Abuse, published by the Association of Certified Fraud Examiners (ACFE), organizations lose an estimated five percent of their annual revenue as a result of fraud.

With a contribution, the donor may place a requirement, or restriction, on the use of the funds. By accepting the contribution, an organization is also promising to use the funds in the manner that the donor has requested. Here are a few questions you should ask yourself before saying the magic word “yes”:

The Office of Management and Business (OMB) issued Circular A-133, Audits of States, Local Governments and Non-Profit Organizations to establish the requirements for audits of non-Federal entities that expend Federal awards. Referencing a few important points found in the guidelines will help determine if your organization needs a single audit.

A fiscal cliff deal finally materialized on January 2 with the passage of the American Taxpayer Relief Act of 2012. The legislation included a handful of new tax provisions as well as a significant number of tax extenders previously scheduled to expire either in 2011 or 2012. A few of these provisions and extenders will more than likely have a direct effect on charitable organizations and their fundraising efforts, including the reinstatement of the Pease limitation and the extension of the qualified charitable IRA distribution.

Since the Sarbanes-Oxley Act was passed in 2002 and the Form 990 was redesigned in 2008, there has been an increased focus on the importance of corporate governance within not-for-profit organizations. A not-for-profit’s board of directors is charged with oversight of the organization’s governance and fiscal accountability. A strong audit committee can assist the board in their oversight of these areas.

Most people often believe that a charitable organization develops a mission statement for internal purposes with the added benefit of drawing in donations. However, mission statements not only express the purpose of the charity, but also create the foundation for success.

November is Lung Cancer Awareness Month, designated to bring attention to the needs of all those affected by an often invisible disease. In our lifetime, one in 14 of us will be diagnosed with this disease. In fact, over the course of the next year, approximately 225,000 people will be diagnosed with lung cancer.