1. Financial Issues
for Nonprofits
Presented by
Scott Denlinger, Director, CBIZ MHM Nonprofit Practice Group
Email: sdenlinger@cbiz.com| Phone: (301) 951-3636, Ext. 6739
linkedin.com/in/jscottdenlinger
2. Topics:
Changes to OMB A-133 Audits
Excessive Executive Compensation
Business Continuity Planning
Key Filing Dates
– Payroll Returns
– Income Tax / Information Returns
– Personal Property Returns
– A-133 Reporting
– State Charity Registrations
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3. Nonprofits – Changes to A-133 Audits
Increased threshold to $750,000
Increase in threshold for Type A program to
$750,000
Decreased thresholds from 50% & 25% to
40% & 20%
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Read our complete report
[Visit MHMCPA.com/Resources/Articles/MHM-Messenger]
4. Rebuttable presumption principle
Rebuttable presumption may not be enough
Potential consequences (loss of exempt status,
penalties, etc.)
Schedule J – how many boxes checked is enough?
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Nonprofits – Excessive Executive Compensation
5. Prevent unbudgeted and unnecessary costs
Protect valuable data
Increase safety of all personnel
Minimize decision making during an event
Help your organization quickly respond and
resume operations
Reduce your liability and insurance costs
Provide organizational stability
Nonprofits – Business Continuity Planning
Disaster recovery and continuity plans can:
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6. 6
Nonprofits – Business Continuity Planning
Initial Assessment
− What types of risks
− Different for each organization
Develop / document the plan for each scenario
Train, test and maintain
Three phases:
Outside professionals can help guide your business continuity
planning process and help you create plan that suits your unique
risk environment and budgetary needs.
7. Nonprofits – Key Filing Dates
Payroll Returns
January 31st
− Forms 941, 945, 940
− Forms W-2/W-2G & 1099 to employees
February 28th
− Forms W-3 & 1096
− Forms W-2/W-2G & 1099 to employees
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8. Income Tax/Information Returns
− Form 990/990-T
o 15th day of 5th month after year-end
o Two 3-month extensions are available
− Form 990-W
o Due 15th day of 4th, 6th, 9th and 12th months of fiscal year
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Nonprofits – Key Filing Dates
9. State Income Tax Returns
DC Form D-20
− Due 15th day of 5th month after year-end
− 6-month extension available
DC Form D-20ES (Estimated tax payments)
− Due 15th day of 4th, 6th, 9th and 12th months of fiscal year
MD Form 500
− Due 15th day of 5th month after year-end
− 7-month extension available
MD Form 500D (Estimated tax payments)
− Due 15th day of 4th, 6th, 9th and 12th months of fiscal year
VA Form 500
− Due 15th day of 6th month after year-end
− 6-month extension available
VA Form 500ES
− Due 15th day of 4th, 6th, 9th and 12th months of fiscal year 9
Nonprofits – Key Filing Dates
10. Maryland
− Due April 15th
− 2-month extension
available
− Certain nonprofit
organizations are
exempt
Personal Property Tax Returns
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Nonprofits – Key Filing Dates
Virginia
(taxed at county level)
− Fairfax County due May 1st
(no extension available)
− Arlington County due May 1st
(no extension available)
District of Columbia
− Due July 31st
− 3-month extension
available
− 501(c)(3) organizations
are exempt
− Exempt if remaining cost
is less than $225,000
11. Audit Reports/Data Collection Form
− Due 30 days after receipt of audit report or 9 months after year-end
− No extensions allowed any more
− Loss of low-risk auditee status
Federal Funding Accountability and Transparency Act
(FFATA) Reporting
− Must report sub-awards >$25,000
− Due at the end of the month following the month the sub-award is
made
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A-133 Reporting
Nonprofits – Key Filing Dates
12. District of Columbia
− Charitable Solicitation Renewal every two years by January 15th
− BRA-25 every two years by April 1st
Virginia
− Due by 15th day of 5th month after year-end
− Extension of time is available
− Individual counties may require business license renewals
Maryland
− Due within six months of fiscal year-end
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State Charity Registrations
Nonprofits – Key Filing Dates
13. You may also be interested in
MHM’s 2015 Preview: Not-for-Profit
Accounting and Tax Changes
and
2014 Schedule A Expands Reporting Requirements
for Supporting Organizations