Not-for-profit organizations, large and small, play a vital role in our communities and our economy. With this good work comes scrutiny of management and volunteer boards regarding operational efficiency, social impact, and fiscal responsibility.
We know this first-hand. Daszkal Bolton’s team members serve on not-for-profit boards notably, as treasurers. Working with and representing not-for-profits is integral to our firm culture. We build housing, we walk, run, and support countless charitable organizations. We make it our business to understand the organizations we represent. We give clients the confidence to utilize their financial statements to educate stakeholders and the public at large about their operations and effectiveness. We help you tell your story with financial certainty.
Daszkal Bolton includes experienced financial professionals, both tax and audit, who are dedicated to meeting the unique needs of not-for-profits. Our assigned client teams provide an integrated, comprehensive approach to the financial health of your organization. We maintain consistency in our personnel, year after year, to get to know your culture, mission, and staff members. You can count on Daszkal Bolton partners to be hands-on in planning meetings, end of the year presentations, and answering questions all year long.
To ensure top quality, the Firm is a member of the AICPA Government Audit Quality Center, the industry’s governing body and leading forum for sharing best practices and staying current. Not-for-profit governance and oversight are constantly evolving with changes to accounting standards, tax laws, and regulations.
There are over 27 different types of not-for-profit organizations. Each category has its own set of rules for 1) eligibility; 2) lobbying; 3) electioneering; and 4) tax-deductible contributions. The most common are classified as 501(c) 2, 3, 4, and 6.
Our not-for-profit clients have similar compliance requirements but vary when it comes to areas such as revenue recognition.
The Daszkal Bolton team provides audit and tax counsel to maximize organizational resources with the following services:
Daszkal Bolton’s team handles audits, reviews, and compilations for dozens of entities representing a wide range of non-profit 501(c) organizations. Many of these organizations receive grant funding from state and federal agencies. We assist these clients with Single Audits for federal award compliance and with the Florida Single Audit Act for state funds and program-specific audits.
The Single Audit, triggered by $750,000 in expended funds from federal sources, allows not-for-profit organizations to submit one combined audit that can be relied upon by federal agencies. However, it is more detailed than other independent audits. We help clients clarify and interpret the OMB’s Uniform Guidance on fundamental concepts such as cost principles and internal controls for Single Audits. Like other audits, we help organizations document everything and ensure that funds are designated for stated purposes.
At the State level, Florida, like other states has implemented similar audit requirements for not-for-profits receiving state funds. The Daszkal Bolton team guides entities through the applicability, internal controls, and compliance requirements of state laws such as the Florida Single Audit Act.
For Federal Tax compliance, we prepare Form 990 with the following principles in mind that add value to the submission:
For State Tax filings, our tax team ensures compliance for organizations that are raising or spending funds in multiple states. In Florida, for example, a review is required on contributions between $500,000 and $1 million. An audit is required for contributions above $1 million.
While every organization must arrive at its own definition of financial stability, prioritizing the management of financial assets can allow organizations the freedom to provide their vital programming and eventually achieve sustainability.
The phrase “financial sustainability” in the context of nonprofits generally refers to an organization’s ability to sustain itself over an extended period of time in support of its central mission. According to a 2018 report on the financial health of America’s nonprofits, many organizations are facing major financial crises.
Many nonprofits turn to corporate partnerships to reach wider audiences and enhance revenue. However, the challenge for nonprofits is convincing corporations to agree to the partnership and recognize the business value in such an alliance.
To learn more about not-for-profit accounting services at Daszkal Bolton, simply fill out our contact form, or call (561) 367-1040.
