News

FASB Update: Presentation of Financial Statements

August 23, 2016 by Yeo & Yeo

 

The FASB recently released the first of two phases of its project to improve the financial reporting for not-for-profit (NFP) entities. Read the Accounting Standards Update.

Who will be affected?

The amendments in this update affect all NFPs and the users of their general purpose financial statements.

What are the main provisions?

The main provisions of this update, which amend the requirements for financial statements and notes in Topic 958, Not-for-Profit Entities, require an NFP to:

  • Present on the face of the statement of financial position amounts for two classes of net assets at the end of the period, rather than for the currently required three classes.

Nonprofits Should Personalize GuideStar Profile to Increase Visibility

August 17, 2016 by Yeo & Yeo

GuideStar is a website that provides impartial information about nonprofit organizations to the public for free. The website receives basic details about the organizations from the IRS, including contact information and a copy of Form 990. However, GuideStar encourages each nonprofit to claim its own profile in order to provide in-depth information that could interest donors, supporters and partners.

How to update your nonprofit’s profile

Claiming and updating an organization’s profile is free for all nonprofits. Simply go to the GuideStar website (www.guidestar.org) and click on “Update Nonprofit Profile.” First, request permission to manage the profile, which should be processed within...

Read More

Lost Your Tax-exempt Status? Get it Back.

August 16, 2016 by Yeo & Yeo

For most tax-exempt organizations, Form 990, 990-EZ, 990-PF or 990-N (e-Postcard) is required to be filed each year with the Internal Revenue Service. If an organization fails to file for three consecutive years, it will automatically lose its tax-exempt status on the original filing due date of the third annual return or notice.

If an organization loses its tax exempt status, it is no longer exempt from federal income tax, meaning that it may be required to file Form 1120, U.S. Corporation Income Tax Return or Form 1041 U.S. Income Tax Return for Estates and Trusts, and pay applicable income taxes. In addition, donations made to the organization are not tax-deductible once the organization’s...

Read More

Nonprofit Organizations Can Earn a Share of $2 Million With Kroger Community Rewards

August 15, 2016 by Yeo & Yeo

The Kroger Co. will donate up to $2 million this year to nonprofit organizations. Your organization can earn a share of that donation. Here’s how:

  1. Go to www.kroger.com/communityrewards to register your organization by filing the Enrollment Application, Terms and Conditions and your Letter of Determination 501(c)(3).
  2. Then, encourage members and supporters to register their Kroger rewards card online, using your organization’s name. Whenever the individual shops using their Kroger rewards card, your organization will earn money.

Each quarter, Kroger will pay up to $500,000 to participating organizations. The payout is based on the organization’s percentage of eligible spending related to eligible spending...

Read More

Pro Bono CPA Services for Growing Companies in Michigan

July 1, 2016 by Yeo & Yeo

Yeo & Yeo CPAs & Business Consultants is going into its fourth year of helping to advance Michigan’s growth by nurturing companies through pro bono services under the Pure Michigan Business Connect initiative. This initiative, developed by the Michigan Economic Development Corporation (MEDC), connects early-stage Michigan companies with professionals who will provide legal, accounting and other services at little to no cost.

In January 2013, Yeo & Yeo committed to donate up to a grand total of $250,000 in services to select Pure Michigan Business Connect program participants over a five-year period, 2013 through...

Read More

Best Practices for Effective Donor Acknowledgment Letters

June 9, 2016 by Yeo & Yeo

Donor contributions are often a primary source of unrestricted funds for many nonprofit organizations. Therefore, look to acknowledgment letters as an opportunity to strengthen donor relations – use them as a means to celebrate an organization’s successes and keep donors’ contributions rolling in.

The multi-purpose acknowledgment letter

Donor acknowledgment letters are a perfect vehicle to tout program successes, thank donors for contributions to a particular function or program and, in many cases, provide the donors with the documentation they need to claim a tax deduction. As a best practice, acknowledgment letters should be sent whenever an organization receives donations of cash,...

Read More