The American Institute of Certified Public Accountants (AICPA) released its annual list of top issues that will affect not-for-profits from now until the end of 2022.
The pandemic will continue to have broad impacts, along with multiple new regulations.
- $2 trillion in CARES Act funding
- $1.9 trillion in American Rescue Plan Act funding
- $15 billion in grants from the Shuttered Venue Operators Grant program
- Paycheck Protection Program
- Charitable giving incentives raising limitations on deductible charitable contributions
- Expanded family and medical leave (FMLA) for Covid-19
- ASU 2016-02
- Key changes from lease standards
- Substantial preparation involved in implementation
Current recommendation: Take an inventory of all leases that will be in effect at the adoption date.
Final Regulations for Unrelated Business Income Silos
- IRC Section 512(a)(6) issued November 19, 2020.
- An organization’s various trade or business “silos” will be separately identified using a two-digit North American Industry Classification System (NAICS) code.
- Shared expenses are to be allocated among the various silos on a reasonable basis.
Changes to IRS Form 990-T
- Two-page summary form.
- Filing organizations will have to attach a separate Schedule A to Form 990-T for each unrelated trade and business.
- Allows filing organizations to deduct charitable contributions.
- Does not have to be allocated across an organization’s unrelated business activities.
Changes to NFP Reporting of Gifts-in-Kind
- ASU 2020-07 issued September 2020
- Required new presentation and disclosure standards for gifts-in-kind
- Effective for annual periods beginning after June 15, 2021
- Requires the following:
- Include contributed non-financial assets as a separate line item on the statement of activities
- Disclose amount of contributed non-financial assets received, disaggregated by category
Are you concerned about how you’ll handle any of these issues over the coming months? Contact the CSH NFP experts to chart your path to success.