The issuance and implementation of the FASB not-for-profit financial presentation standard, Accounting Standards Update (ASU) 2016-14, back in 2016 resulted in changes to the presentation of GAAP-based financial statements for nonprofits. These changes were meant to provide financial statement reviewers, such as donors and lenders, with more relevant information about the status of an organization's current and future resources. One key change brought about by this ASU relates to the presentation of a nonprofit’s expenses. Let’s take a deeper look at these changes and what they mean for nonprofits.
The numbers on your nonprofit’s financial statements tell a colorful story ― if you know what to look for. Nonprofit CEOs, executive directors and board members who have a solid understanding of financial statements typically make better decisions for their organization. When you don’t have a financial background, it can be difficult to know where to focus your attention when you review financial data. Let’s break things down.
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Social Security & Medicare Tax As of January 1, 2024, the maximum amount of annual earnings subject to Social Security increases to $168,600 (from $160,200 in 2023). There is no limit on the amount of earnings subject to the Medicare tax. The maximum Social Security tax to be deducted from an employee’s compensation during 2024 will be $10,453.20 (6.2% x $168,600).
Creating and managing your nonprofit’s budget probably isn’t a favorite annual task. Though budgeting may feel tedious or even overwhelming, having a clearly established budget plays a key role in your nonprofit’s ability to successfully execute its mission. A budget provides your organization with a financial roadmap to ensure resources are being allocated effectively, cash flow management, credibility with key stakeholders and much more.
It has been quite some time since Maryland’s general assembly passed MarylandSaves in 2016. After much delay, Maryland finally put its retirement vehicle into motion on September 15, 2022, in the form of a Roth IRA account. Now that the program has been in full effect for over a year, applicable Maryland businesses must file for the annual exemption by December 31, 2023. Here are the details business owners need to know.
"Hot dog, it's time to issue an RFP for audit services!" said no nonprofit ever. If you’re like most nonprofit audit committee members and executive directors, you cringe just a little when it comes time to solicit proposals for a new audit firm. As an audit firm that responds to dozens of nonprofit requests for proposals (RFPs) every year, we’re here to offer advice (and a template!) on how to prepare your next audit RFP, what to include in it and suggestions for what you can leave out.