Marvin & Co. Blog

3 Ways to Secure the Financial Sustainability of Your Nonprofit

Posted on: 7/8/19 by Christopher J. Healy, CPA, CGFM

To be a sustainable nonprofit organization, its leaders must know how to deliver affordable programs and services in alignment with the enterprise’s fundraising revenue. In this article, Marvin and Company, P.C. provides three approaches to secure greater sustainability.

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Deadline Approaches for Remedial Amendments for 403(b) Plans

Posted on: 7/8/19 by Alan W. Clink, CPA

Maintaining compliance for 403(b) retirement plans historically has been challenging given the lack of historical regulatory oversight, guidance from the Internal Revenue Service (IRS), and non-profit organizations’ limited resources. But the IRS has taken steps to address this, including publishing a list of providers offering pre-approved prototype plans and creating a remediation period ending in March 2020 for sponsors to self-correct non-compliant plan documents.

This article provides background on 403(b) compliance, remediation, operation mistakes and how to capitalize on the remediation window.

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Guidance Released on Taxable Income from Parking and Other Fringe Benefits

Posted on: 7/8/19 by Thomas W. Hosey, CPA

The bill known as the Tax Cuts and Jobs Act, enacted in December 2017, added new Section 512(a)(7) to the Internal Revenue Code (IRC).  This new section requires tax-exempt organizations to increase their unrelated business taxable income (UBTI) by the amount paid or incurred for qualified transportation fringe benefits (QTFs) provided to employees.

For this purpose, QTFs include the provision of parking and mass transit benefits, and taxable income is created whether the employer pays for the benefits directly or allows employees to pay for the benefits on a pretax basis.  Made effective Jan. 1, 2018, mere days after the new law was enacted, many tax-exempt organizations were facing the daunting requirement to calculate, report and pay income tax for the first time.

In December 2018, the Treasury Department provided organizations and their tax advisors with some much-needed guidance on the new law in Notice 2018-99. 

This article describes a four-step method for complying with the new law.

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4 Things You Should Know About Advanced Settings in QuickBooks Online

Posted on: 7/8/19 by Margaret Hurlburt, CPA

Do you know about all of QuickBooks Online’s settings? What you’re missing may be important.

Looking through all the settings available in QuickBooks Online is something like reading the owner’s manual when you get a new car. You know you should do it, but you find yourself consulting it only when you encounter a problem.
Whether you’re new to QuickBooks Online, or you’ve been using it for a while, we recommend that you familiarize yourself with these important preferences.  Settings do more than turn features off and on: they can teach you about tools you might not have known were available.
This article explores some that you may have missed.

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IRS Action Against Tax Debtors May Impact Passports

Posted on: 6/3/19 by Heather D. Patten, CPA

With a busy travel season ahead of us, the IRS recently warned federal tax debtors about a little-known law affecting taxpayers who need passports.  

This article explains why IRS action against federal tax debtors can include passport limitations in addition to liens and levies.

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How to Avoid Becoming a Victim of Employee Theft 

Posted on: 6/3/19 by Matthew W. Merriam, CPA

In any business, the last thing you want to worry about is whether any of your employees are stealing from the company. Unfortunately, the theft or diversion of company funds is common wherever there is access to those funds, such as payroll, accounting or vendor receipts. If your company or organization doesn’t have firm policies and procedures in place to mitigate the opportunities, you could fall victim to employee theft. 

This article provides detailed measures employers can take to minimize the opportunity for employee theft at their companies.

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The Value of Due Diligence to a Business Transaction

Posted on: 6/3/19 by Myra M. Thorne, MBA, PHR

You’ve decided to sell your company. How do make sure you will receive fair value for the true worth of the business? After all, you have spent years building a brand, a reputation and success of your business. Now that you’re finally considering your exit strategy, it is vital that you can meet your objectives when the exit is imminent. 

What if you are the buyer looking at a target company? Acquiring firms and private investors focus on a target company’s operations, financial health and risk profile. To meet the objectives of both parties, sellers and buyers often utilize pre-transaction due diligence providers to carefully and methodically investigate a target company.

This article explores how due diligence offers great value to both the buyer and seller in a business transaction.

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Is Your Nonprofit Accurately Reporting In-Kind Donations?

Posted on: 6/3/19 by Carol A. Hausamann, CPA

In-kind donations, also known as gifts in kind, are donations of services, goods or time. They can include physical goods, such as clothing, equipment or supplies, as well as immaterial items like royalties, copyrights, advertising or patents. In terms of in-kind services, they could include professional support from colleges, tradespeople, vendors or corporations. 

However, when reporting financial statements based on generally accepted accounting principles (GAAP), it is critical for nonprofits to accurately capture and identify all gifts in kind. Reporting in-kind donations is required by auditors, and may also be a requirement of your nonprofit’s set terms and conditions by key constituents, lenders and grantors. If your nonprofit only files a Form 990 and does not undergo annual audits, in-kind donations can be excluded from the form, but should still be properly recorded for internal purposes and accurate bookkeeping.

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GASB Simplifies Accounting for Capitalized Interest

Posted on: 6/3/19 by Christopher J. Healy, CPA, CGFM

The Governmental Accounting Standards Board (GASB) Statement No. 89 (Statement), Accounting for Interest Cost Incurred before the End of a Construction Period, which is effective for reporting periods beginning after Dec. 15, 2019, brings a welcome relief to state and local governments by eliminating complex capitalized interest calculations.

Under this Statement, for financial statements prepared using the economic resources measurement focus, interest incurred during construction will be recognized as an expense of the period. This means that interest costs will no longer be included as part of the historical cost of a capital asset. Interest costs on ongoing construction in progress will be capitalized only through the implementation date. Furthermore, the provisions of this Statement are to be applied prospectively and therefore do not require restatement of any prior period balances.

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Issuing Credit Memos and Refunds in QuickBooks

Posted on: 6/3/19 by Margaret Hurlburt, CPA

You’re accustomed to money going in a certain direction, but sometimes you have to pay your customers. Here’s how it’s done.

QuickBooks is very good at helping you get paid by your customers. It comes equipped with customizable invoice templates for billing customers and sales receipts for recording instant sales. It supports online payments, so you can accept debit or credit cards and electronic checks. It simplifies the process of recording payments and it offers reports that let you keep track of it all.

There are times, though, when you have to issue a payment to a customer. QuickBooks provides forms that allow that transfer of funds: credit memos and refunds. Do you know when and how they should be used?

This article outlines the basics.

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