Friday, October 2, 2020

Nonprofit Standard-Setting Bodies: How Far Down The Rabbit Hole Do You Want To Go?

via GIFER

 

WELCOME TO LENOREINC.BLOGSPOT.COM!
 
Thank you for joining us today! 

TODAY’S BLOG: 10/02/20

Nonprofit Standard-Setting Bodies: How far down the rabbit hole do you want to go?

 

We launched our premiere of our Mind Map Treasures Accounting Series yesterday. Our live discussions are meant to present an overview of advanced, intermediate, and basic nonprofit accounting topics. However, should you ever be interested or are already involved in the nonprofit world, we would like to argue that the overview does little justice to the level of complexity we have created for the nonprofit world.

 

What do we mean by the level of complexity “we have created”? Who are we referring to?

 

The nonprofit world jumped on the scene due to the public outcry in the political milieu during the 1960s. What could be conceptualized as a needs assessment was placed in clear view of the world and nation, that public support was desperately needed in order to address the needs of the population. 


Since then, the public with its grassroots organizations growing into yet larger organizations, associated with yet others in business and government arenas, found that these organizations, because of being responsible for the stewardship of public support by way of donation, must be transparent with their records and stay true to the mission that they were established to live by.

 

As members of the public and the voting rights provided to all citizens, we all are responsible for creating the level of complexity that standard setting bodies and authorities we have enacted to represent us establish for the purpose of ensuring that the organizations we give our money and support to can substantiate their cause.

 

What is the path of the complexity of standard setting?

 

In the clip below, you will see how far down the rabbit hole that standards of compliance go within the Acts of Congress. From the start of the United States Code pursuant to Acts of Congress to the subsection upon subsection, we find the bottom (although illusory) to the section that mitigates all standards between the nonprofit world and the Internal Revenue Service, section 6033.


Watch this 4-minute clip that starts with Congress and ends with 'evergreen' section 6033.


Please offer us your feedback on what information you were able to deduce from the clip in the comments section below. We will respond with confirmation that your comment has been read and received.


How can we understand this complexity and what it means for us?

 

One way is to understand the complexity is by reviewing nonprofit financial statements and the information that they present. In our Accounting Series next week, we will get an overview of several financial ratios that we can use against a particular nonprofit’s IRS Form 990. You will be surprised at the level of information that can be of use to you based on these ratios.

 

Another way to understand the complexity of the nonprofit world and what it means to you, our nonprofit organizations, is through the utilization of accounting software. Accounting software is designed to help capture nonprofit organizations' financial details based on GAAP standards into the basic financial statements and allows you to customize reports as standards of presentation evolve and are redesigned. 


How can we help you?


Lenore, Inc. was established to provide accounting services to the nonprofit world. Our list of services include:

 

Setup and Implementation of Accounting Software (Intuit QuickBooks Suite)

Strategic Accounting Services

Strategic Certified Bookkeeping

 

Please visit our website to find out more and to download a complete list of services we currently offer.

 

Complexity in this big world is abundant. Use it effectively for: Your NFP Ship. Your NFP Compass. Your NFP Path w/Lenore, Inc.

No comments:

Post a Comment

Thank you for your comments.

Donated and Purchased Assets: Markets and Measuring Fair Value After Acquisition

via GIFER WELCOME TO LENOREINC.BLOGSPOT.COM !   Thank you for joining us today!   TODAY’S BLOG: 10/23/20 When we talk about donated and pu...