Nonprofit Resources
Nonprofit Issues Newsletter, April 2025
Topics in this issue include the importance of accurate net asset classification and cash flow ratios for churches, merger and acquisition considerations for higher education institutions, a potential employee eligibility issue for 403(b) plans, and more.
The Importance of Accurate Net Asset Classification in Church Accounting
By taking steps to categorize your net assets correctly, your church can ensure that funds are used appropriately and in alignment with donor intentions. You will also gain vital insight to help you make informed financial decisions and uphold your commitment to good stewardship.
Learn how net assets should be categorized and the differences between each category.
When Your Institution is Facing an Uncertain Future: Merger and Acquisition Considerations
If your higher education institution is facing financial uncertainty, one potential path is a merger or acquisition. Joining forces with another institution, either in the same geographic region or a new market, could provide enough opportunity for sustained growth to avoid an imminent closure.
Here are some potential benefits and challenges of mergers and acquisitions you can use when starting to consider this step at a high level.
Analyzing Key Church Financial Indicators: Cash Flow Ratios
Effective financial ratios can provide vital insight into a church’s financial condition and trends and help you prepare for what’s ahead.
Our updated article highlights why monitoring cash flow ratios is important, explains how to analyze different ratios, and provides helpful benchmarks and examples. Learn more.
Quick, Easy Wins to Help Your Institution Prevent Title IV Compliance Findings
This is the first year that higher education institutions’ annual compliance audits* will include testing on data acquired with the new Free Application for Federal Student Aid (FAFSA) form. Performing a compliance risk assessment and implementing proactive measures could result in the early identification of errors and help prevent future compliance findings.
These six steps can help you identify errors before your annual compliance audit.
SECURE 2.0 Act Alert: Potential Employee Eligibility Issue for 403(b) Plans
Nonprofit organizations should be aware of a SECURE 2.0 Act provision that could impact certain 403(b) plans, especially those that exclude employees working less than 20 hours a week (1,000 hours annually).
This article explains the potential issue and provides recommended action items.
Newsbits
Treasury Narrows Beneficial Ownership Reporting Requirement to Foreign Entities
While nonprofit entities have always been exempt from reporting information about their beneficial owners to the U.S. Department of Treasury’s Financial Crimes Enforcement Network (FinCEN), a new interim final rule has narrowed the requirement to apply only to foreign entities, and not to U.S. companies or U.S. individuals. Learn more about the changes.
Clean Energy Credit Services for Nonprofits
Nonprofit entities, including churches and higher education institutions, are now eligible for certain clean energy credits and could realize significant benefits with the right planning, substantiation, and documentation. See how CapinCrouse can help.