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Nonprofit Newsletter Spring 2016

In this edition:

The Times They Are A Changing

By Jack Murray, HoganTaylor Lead Nonprofit Partner

Everywhere you look these days, it seems you see challenges, opportunities or both.  In states with heavy reliance on the energy industry, state governments are proposing major cuts to all agencies of the government.  These cuts directly or indirectly, affect nonprofit organizations.  Read more

Why Boards Matter

Katie Seal, HoganTaylor Assurance Senior

In the nonprofit sector, we have come to an agreement on “good governance” and the things boards should do to effectively govern nonprofits.  We have identified the board’s basic roles and developed metrics to gauge organizational success.  Is there a relationship between board effectiveness and organization effectiveness? Read more

Liquidity: Can It Be the Difference between Success and Bankruptcy for NFPs?

By Adam Cole, CPA, and Lee Klumpp, CPA, CGMA

Before New York’s Federation Employment and Guidance Service (FEGS) filed for bankruptcy last year, nobody saw it coming. The legacy social services organization was 80 years old and had $260 million in revenues, but lurking behind those successes was a $20 million deficit. The nonprofit industry was rocked when nobody—not even the board and management—seemed to be aware of the liquidity and cash flow problems plaguing the organization.

The question everyone’s been asking is “how did this happen?” Read more

New Tax Act Has Much for Nonprofits

By Mike Sorrells, CPA

The Protecting Americans From Tax Hikes Act of 2015 (the Act), which was signed by the president on Dec. 18, 2015, contains many provisions that directly affect tax‑exempt organizations. Many recent tax provisions have been so-called “extenders,” which required passage of legislation annually in order for them to continue to remain in effect. These were typically passed at year-end for the applicable year, making planning for such provisions impossible. Now, the year-end panic is over, as the Act makes many of these provisions permanent.

This, along with several other provisions the Act introduces, will have tax implications for nonprofits going forward. Read more