Not-For-Profit GAAP: Defining Equity Transfer and Equity Transaction

An equity transfer is a nonreciprocal transfer between related not-for-profit (NFP) organizations, where one of the not-for-profits owns the other or the entities are under common control. They do not require repayment and are effectively a gift. For example, NFP “A” is the parent organization to NFP “B.” NFP “A” transfers resources to NFP “B,” with…

Read More

Top Tools to Mitigate Hiring Risks in Your Business

Schedule a meeting with Aprio Human Capital Services for help with conducting thorough background checks. The full story: There are many tools and strategies businesses use to reduce hiring risks within their organization. But perhaps the most important methodology at an HR team’s disposal is what we at Aprio like to call “PUREs,” or “previously…

Read More

IRS Audit Campaigns – S Corporations

The IRS’ Large Business and International (LB&I) Division has several active campaigns targeting S corporations. LB&I handles business entities reporting assets in excess of $10 million. The purpose of audit campaigns is to identify potential noncompliance areas to focus on issue-based examinations and allocating their tax examination resources to taxpayers that will likely yield more tax…

Read More

4 Reasons Why You Should Outsource Your Payroll

Schedule a meeting with Aprio Human Capital Services to learn more about outsourced payroll. The full story: Are you spending way too much time on payroll? Do you lose sleep worrying about potential mistakes or slip-ups that could negatively affect your employees? Count yourself among many time-pressed business owners who struggle with payroll. But you…

Read More

The Redesigned 990-T, Take 3

tax, tax form, irs

While the Form 990 has not seen many changes since it was radically redesigned in 2008, the same cannot be said for the Form 990-T, Exempt Organization Business Income Tax. Exempt organizations with unrelated business taxable income will be filing on a form that has been updated three times over three years, with the most…

Read More

What are Donor-Imposed Conditions?

Donors can impose two different types of stipulations on contributions provided to nonprofits, restrictions and conditions. While donor-imposed restrictions specify the use and are usually easier to identify, as they limit what you spend the contributed funds on, donor-imposed conditions are more restrictive and often limit how you spend the contribution. Donor-imposed conditions should be…

Read More

Nonprofit Revenue Recognition: Contribution Vs. Exchange Transaction

In order to apply the correct revenue recognition accounting, nonprofits must consider if a transaction is a contribution or an exchange transaction. At times, it’s not as easy as it reads. Poorly written agreements, misinformation and confusion interpreting the accounting standards can make this process seem overwhelming. First, let’s take a look at the definitions:…

Read More

Extension of Single Audit Filing Deadlines

On March 19, 2021, the Office of Management and Budget (OMB) released Memorandum M-21-20, Promoting the Public Trust in the Federal Government through Effective Implementation of the American Rescue Plan Act and Stewardship of the Taxpayer Resources. The memo is eleven pages and addresses several topics surrounding the American Rescue Plan Act (ARPA). Towards the…

Read More