Accounting for Endowments - Topic for January 26, 2010

Make plans to join us Tuesday, January 26, 2010, as we kick off the New Year with a meeting devoted to accounting for endowments. We'll learn to distinguish between temporarily restricted and permanently restricted donations, as well as the criteria needed to release the restrictions.

Grant-making Roundtable - What's the Objective?

On Tuesday, December 1, 2009 representatives from two local foundations, the Missouri Foundation for Health and the Lutheran Foundation of St. Louis treated nfpFMA members to a lesson on the inside workings of funding decisions.  They stressed these key factors for drafting a strong grant application:

• Emphasize measurable outcomes (behavioral change over time) over measurable outputs (number served)
• Provide financial information that reflects financial stablility
• Request funding for programs that fit into the nfp's core (rather than fringe) strategic plan goals
• Demonstrate commitment to excellence through a diverse, professional board of trustees
• Emphasize qualitative data (stories) over quantitative data
• Demonstrate an understanding of the difference between activities, objectives, and goals

Grant-making Roundtable - Topic for December 1, 2009

During these tough economic times, not-for-profits struggle to replace lost revenue, maintain donors and giving levels, and develop new revenue streams. Accounting methods usually don't factor in to fundraising efforts, but the exception to this is grants. How we manage and report grants can play a role in whether the grant will be repeated.

With this in mind, make plans to join us Tuesday, December 1, 2009 for a Grant-making roundtable. You'll hear from various grant-making organizations and foundations and learn what key indicators they review when selecting grant recipients.

Please note - this meeting has been scheduled a week later than usual to avoid conflicts the regularly scheduled meeting date (the Tuesday before Thanksgiving) would have brought on. We will resume our regular 4th Tuesday of the month schedule with the January, 2010 meeting.

Revisiting the 990 - Topic for October 27, 2009

Grand Canyon! Yosemite! Hawaii! London! Paris!

There are probably plenty of places you wish you could visit and revisit, but the IRS 990 form is most likely not on that list. However, even though we covered the 990 last year, we must return to it to gather more information about the changes the IRS implemented with the new form.

This year, our 990 discussion will be led by a team from LarsonAllen, and promises to provide you with valuable updates for how you can safely guide your way through the new form and return home in one piece.

Trading Your Tips of the Trade 2009 - Topic for September 22, 2009

Have you missed meeting up once a month with nfp Financial Management Professionals? If so, then there is good news for you, because the nfpFMA is back for anther exciting year of cutting edge presentations that will keep you up to date on what you need to know to get the job done at your nfp.

To start off the year, we will once again exchange our tips of the trade, only this year, we'll do it with a twist, starting off in small groups and then working up to presentations to all the meeting members.

So please plan to join us Tuesday, September 22 and come prepared to present your favorite cost savings or productivity tip!

Tell Us What You Think - Topic for June 23, 2009

Join us Tuesday, June 23, 2009 for a short presentation by United Way followed by a round-table discussion on the topics you would like to hear next year. The June 23 meeting is the last meeting before summer break. We will reconvene on September 22, 2009 with a new slate of topics and speakers that will come from the round-table suggestions.

So please come prepared to discuss your topic/speaker wish list for next year's meetings.

Correction: Brooks Ball of Mutual of America will be giving a short talk. And the discussion afterward will center on these topics:

• Treasurer's Report
• Discussion of dues
• Discussion of logistics for meetings: location, time, date and food
• Review of this year's presentations and discussion of topics for next year

Accounting and Reporting Changes Affecting nfp's Part II - Revenue Reporting Requires Precision

On Tuesday, May 26, 2009, Jen Vacha of Brown, Smith, Wallace, presented the changes the 2008 990 is having on revenue reporting. The 2008 990 divides revenue into three basic categories (in Part VIII Statement of Revenue): Contributions, gifts, and grants; Program service revenue; and Other revenue.

The basic trait of Contributions is that the donors receive nothing of value in exchange for their gift and the donor determines the amount of the payment.

Program service revenue is revenue provided from the programs which are the basis of the organization's exampt status.

Other revenue consists of investment revenue, gaming revenue from activities like casino nights raffles, and bingo. Other than qualified bingo, most gaming revenue generates Unrelated Business Income.

The upshot is to be very precise about categorizing revenue so that 990 reporting is less difficult.

Accounting and Reporting Changes Affecting nfp's Part II - Topic for May 26, 2009

Ever get confused when trying to determine the portion of a contribution that provides value back to the donor? Worried about whether gifts have been properly categorized as restricted or unrestricted? Bewildered as to how all this ties into the 990?

Well stop worrying and join us Tuesday, May 26, 2009 when a representative of Brown Smith Wallace will discuss the latest regulations affecting accounting for contributions. Among the topics discussed will be:

• Contributions vs. Exchange transactions
• Restricted gifts
• GAAP and 990 Direct Benefit to Donor

Accounting and Reporting Changes Affecting nfp's Part I - FAS 157

On Tuesday, April 28, 2009, Janet Ramey of Brown Smith Wallace discussed the implications of FAS 157, which was issued in September, 2006 and which is effective for fiscal years that begin after November 15, 2007. FAS Statement 157 provides a framework to measure fair value. But first, it provides a definition of fair value:

"The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date."


FAS 157 then sets out three levels of information by which fair value is determined.

1. - transactions for same item that are observable from active independent markets
2. - observable market inputs
3. - no observable market

As usual, consistency and documentation are critical in substantiating fair value techniques.

Accounting and Reporting Changes Affecting nfp's Part I - Topic for April 28, 2009

Ever get confused when you hear finance pros discuss terms like "mark to market" and "underwater investments?" If you answered yes, then please join us at our next meeting, Tuesday, April 28 when Janet Ramey of Brown Smith & Wallace will take us through all the latest investment accounting and reporting changes brought on by the weakened economy.

This is the first of a two-part program on accounting and reporting changes affecting nfp's. Part I will focus on asset valuations with particular emphasis on the following:

• Investment valuation
• Endowment accounting
• Meaningful financial reporting in an uncertain financial environment - based on recommendations from the nfpFMA 3/24/09 meeting

Part II will emphasize the event accounting and overhead expense allocations.

So celebrate the end of tax season and the successful filing of your nfp's 990 by attending the meeting April 28!

Surviving the Economic Downturn - It can be done

On Tuesday, March 24, 2009, Rick Aselage and Amy Altholz of RubinBrown reviewed eight strategies nfp's can use to survive the economic downturn. They are:

• Budgeting and Performing Break-Even Analysis - develop a realistic contingency budget with the worst case scenario, then identify the most significant expenditures and where the most benefit could be realized by reducing costs (see notes from 2/24/09 nfpFMA meeting on health care costs to get started!)
• Assessing Fundraising Strategies - expand planned giving efforts, evaluate the profitability of special events relative to the resources neede to put them on, and be willing to work with donors to restructure promises to give
• Evaluating Financing Options - Check with lenders on the status of credit lines well before the renewal dates
• Managing Endowments and Restricted Funds - proceed with caution if taking out loans from restricted endownments, and cease all distributions from endowments that "underwater" (when the FMV is less than the original contribution amount)
• Developing Downturn Strategies - sometimes mergers or acquisitions of other nfp's could save the missions of both
• Preventing Fraud - continue to enforce high internal control standards. With a downturn, the fraud triangle of "motive, opportunity, and rationalization" are much more likely to occur, especially if controls are loosened because of staff downsizing.

A ninth suggestion was put forth by the members of the nfpFMA:

• Take Advantage of the Uncertainty to Seize Opportunities that would not otherwise exist - this includes collecting suggestions from staff for revamping, upgrading, or changing processes and procedures, developing new service areas, and implementing new fundraising strategies or prospects leads.

Surviving the Economic Downturn - Topic for March 24, 2009

Since mid-September, many not-for-profits have experienced declining revenue from their investments, from donors who rely on investments for discretionary spending, from local companies who are undergoing downsizing and unable to donate because of it, and from governmental entities that are seeing declining tax receipts. So not-for-profits find themselves confronted with a situation of declining revenues and increasing service requests. What to do? Learn how to cope in these trying times at our next meeting.

On Tuesday, March 24, 2009, Rick Aselage of RubinBrown will speak on the topic "Not-for profits: Operating in Bad Economic Times." Rick will take us through the economic outlook and how that will impact nfp's. From there he'll offer some suggestions and action steps we can take to make the most of a weak economy.

How Healthy is Your Medical-Wellness Benefits Program? - Get Help from your Broker

On Tuesday, February 24, 2009, nfpFMA members heard about a variety of Health Benefits options even small not-for-profits can use. Bill and Barb Heftel of B&H Associates and Bill Maher of MRCT Benefits Plus discussed ways employers can control the cost of medical insurance premiums by using such tools as Health Spending Accounts, Health Reimbursement Accounts, and Flexible Spending Accounts. The speakers also suggested using online applications so that employees complete one application that in turn populates the carrier applications. Finally, the speakers discussed ways Wellness Plans are addressing the primary factors of healthcare cost: smoking, obesity, lack of physical exercise, and lack of consumerism.

How Healthy is Your Medical-Wellness Benefits Program II - Topic for February 24, 2009

Join us Tuesday, February 24, 2009, when Bill and Barb Heftel of B&H Associates discuss ways to keep health costs in check. This meeting is the second of a two-part series on Health-Wellness. The first meeting in this series was set up to be a round-table discussion on health expense and wellness management concerns, but was cancelled because of a winter storm. Therefore, we have been collecting your thoughts on this topic by email.

Bill and Barb will take up many of the emailed questions and in addition, will offer suggestions we can implement to reduce health care costs and manage wellness plans.

Banking Services for nfp's - There are many choices

On Tuesday, November 25, Susan Aiello, Vice President, Treasury Services of Commerce Bank outlined many of the banking services offered to not-for-profits. From making deposits remotely by scanning and sending, to collecting donations by credit card, paying invoices online, directly depositing payroll, and managing fraud prevention, banks are putting technology to work for us.

Managing Risk in Today's Economy - nfp seminar Thursday, January 29, 2009

RubinBrown accounting's not-for-profit team is presenting a seminar called "Managing Risk in Today's Economy" for Thursday, January 29, 2009. Please visit their web site for more information.

How Healthy is your Medical-Wellness Benefits Program? - We'll know next month!!

Today's meeting was cancelled because of road conditions caused by the winter storm. We will address this topic next month with speakers from B&H Associates. If you have a specific issue you would like the speakers to address next month, then please send it to Paul at pogier@lssmo.org.

How Healthy is Your Medical-Wellness Benefits Program? - Topic for January 27, 2009

Uncertain about how to offer medical continuation correctly? Stressed by the medical insurance bidding process? Unaware that waiting periods and eligibility requirements are actually enforced by medical insurers? Searching for ways to save money on health insurance expense?

If these and other questions have your blood pressure rising, then start off the New Year with a toast to good health by bringing the best practices, ideas, questions, or failings of your nfp's medical benefits or wellness programs to our next meeting, January 27, 2009. The January meeting will be the first of a two-part series on the medical/wellness topic, and will involve a general discussion of health-wellness benefit best practices and issues. So please come ready to share your ideas, concerns, and questions, and we'll do our collective best to provide resolutions. We'll reserve all the unanswered items for the second meeting, February 24, when Bill and Barb Heftel of B&H Associates, a benefit consulting firm, will lend their expert advise and facilitation to what ails us. B&H is associated with MRCT/Benefits Plus, a St. Louis based benefits consulting firm.