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

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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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]

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

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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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.

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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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

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

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Nonprofits – Key Filing Dates

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

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

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

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