Nonprofit Industry
We know Hoyman Dobson as a well-respected company with a sterling reputation in the Brevard not-for-profit community. Throughout the audit process Hoyman Dobson staff is always professional and courteous and ready to answer questions and help with any areas of concern.
Cindy Flachmeier
President/CEO Community Services Council
Cocoa, FL
How can Hoyman Dobson help your nonprofit organization:
- Audits & reviews by skilled nonprofit auditors
- Unrelated business income tax planning
- Tax return preparation & consulting
- Single audits of Federal and State Grants
Hoyman Dobson Nonprofit Experience:
- Dedicated audit team with extensive nonprofit experience
- Currently providing services to dozens of nonprofit organizations
- Vast experience with Federal and State Single Audits
- Highly proficient with 1023’s, 1024’s, 990’s, 990-T’s, and F-1120’s
- Quick access to national nonprofit resources through CPAmerica
- Contact: Debbie Goode, Audit Director. Email or call 321-426-3040
The nonprofit industry’s competitive landscape
Since the local community and government can’t meet all of a community’s social needs, thankfully nonprofit agencies can help to fill the void with social services. Normally, an organization will qualify for nonprofit status if:
- The organization is religious, charitable, scientific, literary, or educational in nature.
- Its goal is to serve the public good
A nonprofit’s success is normally assured if it:
- Can run its operations efficiently
- Is able to match expenses with fluctuating revenues
- Prepares a budget and monitors it on a monthly basis
- Keeps a clean set of books and records.
If you volunteer anywhere in the community, chances are you volunteer for a nonprofit organization, as they heavily rely on volunteer help.
- More than 60 million Americans volunteer for nonprofits
- 8.1 billion hours annually donated => 7.8 million full-time employees.
Finance and Regulation
The revenue sources for the nonprofits include:
- Contributions
- Gifts
- Grants
- Program Services
- Membership dues
- Investment income
If your nonprofit organization is larger in size, most probably more of your revenues are coming from the program services you offer. Smaller nonprofits receive more than half of their revenues from contributions, gifts, and grants.
Normally, nonprofits expenses are grouped into three major accounting categories:
- Program services
- Fundraising
- Management and General
IRS regulations impose some financial reporting requirements, including the filing of:
- Form 1023 or 1024 to get approval from the IRS that the entity qualifies as a nonprofit
- Balance sheet information
- Annual financial reports (Form 990) detailing revenue and expenses
If you work in the nonprofit industry or are a donor you should be aware of the many private groups, such as GuideStar, Charity Navigator, American Institute of Philanthropy, and others that collect and post Form 990 information (for executive salaries, office expenses, paid fees to associated fundraising companies), then rate nonprofits, and publish the ratings on their websites. Many donors base their charitable contribution decisions on the information provided on these sites.
Business Challenges
- Uncertain revenues
- Contributions depend on economic conditions
- Dependence on big donors
- Barriers to recruiting qualified staff
- Fluctuating cash flows
- Limited resources for accounting and other administrative functions
So let us know what’s keeping you up at night?
- How to track and record in-kind materials and services?
- Determining how to allocate expenses to minimize unrelated business income?
- Gaining donor credibility?
- Obtaining and retaining state and federal grant funding?
- Tracking temporary and permanently restricted dollars?
Hoyman Dobson can assist you with solving the business challenges noted above though consultation with the team members in our office who are uniquely qualified to understand and address a nonprofit’s financial needs.
Resources you could use:
|
|
|
|
|
|
- BBB Wise Giving Alliance - Rating system for major charities. From a merger of National Charities Information Bureau and Better Business Bureaus' Foundation.
|
|
|
|
|
- Guide Star - Form 990 financial statements for 220,000 nonprofit organizations.
|
|
|
|
|
- Network for Good - Grant guides, ideas, resources, facts, figures, Internet resources, events, deadlines, products and services.
|
|
|
|
|
|
|
|
|
- www.freeERISA.com - Lists organizations' IRS Form 5500 mostly for pension plans/funds; also has tax-exempt organizations.
|