If your nonprofit organization has more than 300 transactions a year (just a thumb rule), it’s better to graduate from manual accounting system to more specialized Nonprofit Accounting and Book Keeping Software programs. Although these programs will require you to invest some money and time in getting used to their interface, they are worth giving Read rest of it.
You will often come across the term ‘restricted contribution’ or ‘restricted net assets’ in balance sheet of nonprofit organizations. Not a very common sight in financial statements of ‘for-profit organizations’. This article explains meaning and treatment of ‘restricted net assets’ in the books of non-profit organizations. Meaning: Some donors place restrictions on their contribution. Many Read rest of it.
Cooperatives are normally formed as corporations under respective state cooperative laws. The process of forming a cooperative is very similar to the process of incorporation. Like corporations, cooperatives are formed on organizing documents (articles) and governed by adopted bylaws. The following steps are generally involved in forming a cooperative STEP ONE: IDENTIFYING STATE LAWS FOR Read rest of it.
Valuation of in-kind or non-cash donation is a tricky and complex issue faced by many nonprofit organizations. Many a times, a donor would like to inflate the value of in-kind donation made to your organization for getting higher tax advantage. It is the duty of directors of non-profit organizations to arrive at and reflect a Read rest of it.
Nonprofit organizations have similar financial transactions, accounting and bookkeeping needs as any for-profit organization. Like any other organization, a nonprofit is evaluated by a wide assortment of entities like donors, investors, bankers, creditors, public watchdogs and government to get a picture of its financial position before donating, lending or accrediting the organization. IRS also seeks Read rest of it.
IRS classifies non-profit organizations into 32 categories each with several sub categories. (See: Table below). These categories/sub categories have been mentioned in the IRS code under sections 501(c)(1) up to section 501(c)(27) and under sections 501(d) – 501(n). Section of 1986 Tax Code Description of organization General nature of activities 501(c)(1) Corporations Organized Under Act Read rest of it.
The Pension Protection Act (PPA) was signed into law by the president George W. Bush on August 17, 2006. Besides protecting the pensioners, the pension protection act also creates a number of rules that apply to non profit organizations as well as to donors who make gifts and contributions to tax-exempt organizations. Cash Contributions Previously, Read rest of it.
The U.S. non profit sector is equal to the sixth largest economy in the world – larger than the Canadian or Russian economies. SOME FACTS ABOUT THE NON PROFIT SECTOR There are about 2.3 million non profits in the United States (corporations, trusts, associations and other forms of nonprofit organizations) and more than half of Read rest of it.