Category: Non-Profit

After multiple delays ASC 842, which provides new guidance on leasing standards, is taking effect for private companies and nonprofits for fiscal years beginning after December 15, 2021. Earlier guidance allowed organizations to omit certain lease assets and liabilities from their balance sheet. ASC 842 was designed to close the loophole. Read our analysis to learn more.

The Treasury Department has released its Priority Guidance Plan (PGP) for 2021-2022, a projection of what they want to accomplish during the 2021-2022 fiscal year. The PGP provides an indication of where the Treasury wants to focus, which includes several issues relevant to nonprofit organizations.

Recently, the AICPA Auditing Standards Board issued a suite of standards that effect the Auditor’s Report. It places the auditor’s opinion at the front of the audit report and strengthens the transparency of the auditor’s opinion, clarifies responsibilities, and otherwise strengthens the audit process.

The new Encompass Rating System allows Charity Navigator to rate organizations at scale, automatically analyzing tax forms for three consecutive years. At the time of the rollout, Charity Navigator had increased the total number of rated nonprofits from 9,000 to 160,000. It also expands eligibility to smaller and less established nonprofits that didn’t meet the requirements previously.