Banking Services for nfp's - Topic for November 25, 2008

Join us at our next meeting, Tuesday, November 25, 2008 when our featured speaker from Commerce Bank will present services banks now offer to nfp's. Services include remote deposits, positive pay, paycards, charge card management, electronic donations and other time savers.

The New 990 - Be Prepared

On Tuesday, October 28, 2008, Allan Larson and Darrell Songer of LarsonAllen LLP discussed key changes to the revamped 990. The 990 core form was last updated in 1979 and was in need of some upgrades. But who could have imagined the outcome of the updating process: Eleven Parts and Sixteen Schedules!

To help us prepare for these changes, Larson and Songer focused on two key areas: Governance and Compensation. Their tips for managing all the changes to the Governance Part are to tighten up policies and procedures (Conflict of Interest, Whistleblower, Document Retention and Destruction, Compensation, Safeguarding Exempt Status, Expense Reimbursement, and Gift Acceptance) and check that they are documented and followed.

Compensation is a hot topic for the new 990. Larson and Songer mentioned that compensation is recorded on a calendar basis (per W-2 filings) but need not be reconciled to salary expense on
the Statement of Functional Expense for nfp's that use a fiscal year other than the calendar year.

You can visit the IRS web site's section on the 990 to get more information about the new form.

Contact Julia for a copy of the powerpoint slides from the presentation.

The New 990 - Topic for October 28, 2008

Our next meeting, Tuesday October 28, Allan Larson and Darrell Songer from LarsonAllen LLP will take us through the complexities and intracacies of the new IRS form 990. We covered this topic last year but felt that so many areas remain unexplored that we should cover it again. So please join us, come filing time next year, you won't regret doing so!

Trading our Tips of the Trade

The nfpFMA members came well-prepared to share valuable tips at the meeting September 23, 2008.

Here are the tips we shared:

• To enter a series of numbers in an Excel spreadsheet: Highlight cells, then click Edit, then Fill, then Series.
• Enterprise Leasing’s Trip Optimizer is a time saving and money saving tool.
• You can save on food budgets by partnering with a Co-op.
• Use accounting software’s recurring invoice feature to manage recurring expenses.
• Keep in mind that Disaster Recovery plans are critical.
• Keep all documents related to each grant together in one place.
• Use the comment feature in Excel to keep notes on the expenses are included in each line item for grants.
• Require that any trip outside metro area be made using Enterprise rental cars. All time in the rental car is company time. No need to reimburse mileage at IRS or state rates.
• Disaster Recovery – appoint someone to make backups; protect data from viruses, stay current of updates, try Open Source accounting software, Visit Tech Soup to learn about deals for non profits, take advantage of the non-profit services consortium.
• Don’t hesitate to change vendors to save money. Bid out services on a regular basis. Also, use caution when relying too heavily on pledges to fund capital projects. The donor can back out and the nfp has no recourse.
• For nfp’s with more than 150 employees, consider self-insuring for medical coverage. Request discounts from Fedex and UPS. Don’t pay more than 5 cents per minute for long distance and don’t pay for full minutes if partial minutes are used.
• Take time to develop a job procedures chart for all tasks accounting staff does. The chart will prove invaluable during extended employee absenses.
• Use stock donation form when receiving gifts of stock.
• Consider reaching out to volunteers to fill staffing needs to cut back on training costs.
• Draft Interim Communication with Auditor letter to give advance notice to auditors of significant changes , issues and events.
  
  

Trading our Tips of the Trade - Topic for September 23, 2008

Most of us who have been working in the not-for-profit sector have learned a few shortcuts or cost savings techniques over the years. But because we are usually "departments of one," we don't get the opportunity to share these gems. Well now is your chance!

We will begin our new year with a meeting devoted to an exchange of cost savings or productivity tips of the trade. Please come prepared to share one of your prized techniques with the group. Each member will have 4 minutes to present their pointer, so please plan accordingly.

You Have Spoken!!!

Thanks to all the nfpFMA members who voiced their preferences for future meeting topics. We have developed a program for the 2008-2009 year we hope will meet all your needs and give our group the best year ever!

Let's Hear from YOU - Topic for June 24, 2008

Our next meeting, Tuesday, June 24, 2008 will feature a short session facilitated by United Way, followed by a special end of year nfpFMA open meeting for you to share your suggestions for topics and programs for next year. This will be our final meeting of the 07-08 nfpFMA year, so please join us to help plan an even more successful and beneficial nfpFMA year to come!

Be Kind to In-Kind - Or it won't be kind to you

Leslie Wilson and Troy Lindsey of BKD presented some hard truths about accounting for In-Kind goods and services on Tuesday, May 27, 2008. Some basic take-away points:

• Record contributed goods and services at fair market value. The general rule of thumb for determining fair market value is to ask what the npo would pay upon purchasing the goods or services. However, FAS 157 will change that determination to this: what would the npo receive upon selling the contributed item?
  
• Record in-kind services (also known as Contributed Services) only if they create or enhance a nonfinancial asset
  or
  The services would typically need to be purchased by the organization if not contributed AND the services are provided by individuals with specialized skills
  
• In-Kind goods and services should be acknowledged with a written letter stating the donor's name, the date and location of the donation, and a description of the item received along with a statement that no goods or services were provided by the npo in exchange for the contribution, or a description and good faith estimate of the value of the goods or services that the npo provided in return for the contribution. Send the acknowledgement no later than January 31 of the calendar year following the donation.
  
• The fair market value of a donated auction item should be stated in the acknowledgement letter to the donor who purchased the item at the auction.
  
• The IRS 990 requires special event revenue to be divided up between the FMV of items donated to the event, revenue that was raised to support the event, and revenue that was contributed in exchange for value received in the form of food, beverages, entertainment, advertising, or auction/raffle/drawing items.

Be Kind to In-Kind - Topic for May 27, 2008

Ever get confused determining which goods and services your nfp should accept? Uncertain about the proper way to acknowledge the goods and services your nfp has accepted? And then there is the whole question of whether or not to book the gifts, and at what amount.

If you have been faced with any of these challenges, then please join us at our next meeting, Tuesday May 27, when Leslie Wilson of BKD will discuss the confounding and complicated not-for-profit creation: In-Kind contributions.

2007 not-for-profit Salary Survey - Survey Says....!

This afternoon, Greg Works, presented the results of the United Way 2007 not-for-profit Salary Survey. The survey analyzes data collected during 2007 from 10,612 individuals working at 282 nfp agencies in 85 positions. Any St. Louis nfp was welcome to participate and provide compensation data.

The 2007 survey shows that compensation for St. Louis area nfp finance professionals has increased almost 20% from the 2003 survey. Also, more than 75% of St. Louis area nfp's absorb 70% or more of medical insurance premiums for their employees. So it appears that wages and benefits in the St. Louis nfp sector are remaining competitive with the commercial one.

You can view the full study here.

2007 not-for-profit Salary Survey - Topic for April 22, 2008

Join us at our next meeting, Tuesday April 22, 2008, when we will hear all about how well we in the nfp accounting sector are being compensated! Greg Works of United Way will discuss results of the 2007 nfp Salary Survey that he developed and conducted. You can view the survey here.

Greg not only will discuss the 2007 Salary Survey, but also will compare it with the results from the last Salary Survey conducted in 2004. He'll also compare not-for-profit salaries with those in the commercial sector, and give a preview of forthcoming reports on nfp executive compensation and nfp fringe benefits.

Accounting Software: Trends, Truths & Troubleshooting

On March 25, Kathy Brand, Jim, Snider, and Jonette Mathews of RubinBrown provided the nfpFMA members with much information related to accounting software. Here are some accounting software industry trends they addressed: Web-based software, Improved financial reporting capabilities, HR module additions, and Industry consolidation.

They also discussed useful ways to compare software programs. These included drawing up a needs analysis, evaluating the needs, deciding if a fund accounting software program is necessary, and then searching for and evaluating software programs. Some evaluation criteria are Features & Functionality, Price vs. Overall Cost, Installation, Software Set-up, and the Stability of the software firm offering the software.

Kathy, Jim and Jonette then discussed troubleshooting the software conversion process. Jim recommended we evaluate the chart of accounts and how each segment influences financial reporting capability. He also recommended cleaning up data and getting accounts in balance prior to import, and then checking that all the data did indeed import properly. Finally, the RubinBrown team suggested drawing up a project plan to better manage the entire accounting software conversion process.

Accounting Software: Trends, Truths & Troubleshooting - Topic for March 25, 2008

Join us at our next meeting, Tuesday, March 25 when Jim Snider, Kathy Brand, and Jonette Rodriguez-Mathews of RubinBrown reveal future accounting software trends, offer tips for comparing software programs, and discuss pitfalls related to converting from one accounting software program to another.

990, Is this an IRS Form or What? - Yes, the 990 is indeed an IRS Form

On Tuesday, February 26, 2008, Jen Vacha and Janet Ramey of Brown Smith Wallace presented valuable information about the new 990 form the IRS has developed for 2008. It is 59 pages in its entirety and full of accounting exercises all of us will have great fun doing.

Some areas that may need your attention are Schedule J (from question 23 on Part IV of the 990); Part VII of the 990 (which was formerly Schedule A); and Schedule D, (which is a new schedule and includes the reconciling item lines that were formerly on the basic 990 form).

Schedule J's data must tie back to W-2's and 1099's. Therefore, Schedule J is based on a calendar year, even though all the other information pertaining to the 990 is based on your nonprofit's fiscal year.

Part VII of the 990 also factors into Schedule J, and must tie to W-2's and 1099's.

Schedule D, "Supplemental Financial Statements" is triggered if you answered "Yes" to lines 6, 7, 8, 9, 10, 11 or 12 on Part IV of the 990.

990, Is This an IRS Form or What? - Topic for February 26, 2008

Please join us for our next meeting, February 26 when Jen Vacha and Janet Ramey from Brown, Smith and Wallace walk us through the not-for-profit version of the 1040 - the IRS 990 form. We will learn how to distinguish in-kind goods from in-kind services as well as how to complete the form with the least amount of pain. A definite challenge when tackling IRS forms. See you there.

Allocations Part II - What to do???

Darrell Songer and Allan Larson of Larson Allen, presented Part II of Allocations and Functional Reporting. They focused on how to do cost allocations which generated much discussion with the 23 attendees, who asked questions like how to treat specific administrative costs such as grant writers, accountants and audit costs, Songer and Larson provided these handouts: sample Cost Allocation Plan and the section of the AICPA Not for Profit Audit Guide on cost allocations. But the basic rule of thumb seems to be that if the adminstrative cost would still exist even after a program has been eliminated, then that administrative cost should not be allocated to the program.

Allocations Part II - Topic for January 22, 2008

Please join us at our next meeting for the second part of our allocations discussion with Allan Larson of Larson Allen. We will discuss examples of cost allocation formats as well as expenses that should always be directed toward administration rather than allocated among functions.

A New Year - A New I-64 (Highway 40)

Because we meet each month at the downtown offices of United Way, many of us rely on I-64 to take us to the meetings. Beginning today, that route may no longer be an option for many of us. To help you navigate your way to our meetings during the I-64 re-construction, we've added some rss feeds that provide links to traffic and public transportation updates.

Happy trails!!