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.