Nonprofits

When the Small Business Administration (SBA) announced in late October that it will introduce a new Loan Necessity Questionnaire it created concerns about loan forgiveness eligibility. Borrowers with loans of $2M or greater are required to complete either SBA Form 3509 or 3510 depending on whether the borrower is a for-profit business or a nonprofit organization. The purpose is to help the SBA determine, for loan forgiveness purposes, whether the good faith certification about economic necessity made the loan necessary to support ongoing operations. Unfortunately, there were no comments or guidance issued when the announcement was originally made leaving the 42,000 impacted borrowers with more questions than answers.

In late September, the Financial Accounting Standards Board (FASB) published Accounting Standards Update (ASU 2020-07), Presentation and Disclosures by Not-for-Profit Entities for Contributed Nonfinancial Assets.  The purpose of the new standard is to provide clear guidance on how nonprofits are to report donated nonfinancial contributions, non-cash contributions, on the financial statement.

The COVID-19 pandemic has created a bevy of operational issues and financial challenges for Atlanta nonprofits. The combination of forced closures and stay at home orders left many organizations unable to stay connected to the community, deliver needed services, or hold traditional fundraising events. Almost immediately, nonprofits had to make difficult financial decisions about which programs could be continued, but also whether staff could be retained. Over the months since the pandemic arrived, many have focused on building up the organization’s financial position by moving traditional fundraising events online and leveraging various loan and grant programs.

If there is one word that best describes 2020 it would have to be instability. The COVID-19 pandemic has created new challenges for individuals, businesses, and organizations. Efforts designed to flatten the curve while important to public health have created dire economic conditions. Businesses were hit sharply when forced business closures and modified operation regulations were implemented leaving many without the ability to generate income.

The COVID-19 pandemic has significantly impacted both individuals and businesses. The various regulations designed to curb the spread of the coronavirus has impacted nonprofits in ways that were impossible to predict. Over the past few months, statewide restrictions on large gatherings combined with stay at home orders have left many cut off from essential fundraising activities.

The impact of COVID-19 protection measures including the stay at home orders, forced business closures, and general uncertainty about prevention, left many businesses and nonprofits in a compromised position.

The comprehensive nature of the Act has left many confused and wondering how their situation will be impacted. Specifically, many Atlanta nonprofits have been seeking clarification on which programs and incentives apply to them.

When suffering comes it can be a challenge to manage through it. Finding processes and methods for dealing with even the most challenging of circumstances, cancer, is not easy. Not only do patients often need complex medications to fight the disease, support and encouragement of friends and loved ones, but also medical supplies for the journey.

As Georgia nonprofits and other tax-exempt entities return from the holidays, it’s time to settle in and get re-focused on managing various service programs and delivering needed assistance. While the last few months may have been focused on year-end financial reporting, tax planning and budget preparation for 2020, there was an important change made in 2019 impacting how nonprofits file their tax returns.

The answer to this important question will vary between companies and industries. There are some Atlanta companies that naturally face higher fraud exposure because of the type of business, how services are delivered and where the opportunity for fraud occurs. Whatever your industry, it’s important to understand your company’s risk profile and areas of opportunity for fraudulent activities.  While most focus on growing the company through strategic planning, new business development, customer service, and account management, it’s imperative not to overlook this important exercise.