[advisoryboard]

The new tax law referred to as the Tax Cuts and Jobs Act (TCJA) made substantial changes to business deductions for expenditures viewed to be inherently personal in nature. One of those changes has to do with deductions for qualified transportation fringe benefit (QTFB) expenses such as pre-tax transit checks. If a Not-For-Profit organization provides these benefits on a pre-tax basis to its employees it will be required to file an annual Form 990-T, “Exempt Organization Business Income Tax Return” and pay applicable taxes.

• This reply was modified 6 years, 1 month ago by advisoryboard.

[advisoryboard]

Your auditor is correct if the grant has the following elements:
1. The grant is a unrestricted (i.e. without donor restrictions)
2. There are no conditions that have to first be met in order to receive the grant
3. The grant is not an expense reimbursement grant

If everything above applies then you record 1/3 of the grant in the current year as “Without Donor Restrictions” (i.e. unrestricted) and record 2/3 of the grant in the current year as “With Donor Restrictions” (i.e. temporarily restricted).

• This reply was modified 6 years, 1 month ago by advisoryboard.

[advisoryboard]

The Financial Accounting Standards Board (FASB), which is the accounting rule making body, issued an accounting standards update (ASU 2014-16) entitled “Not-For-Profit Entities: Presentation of Financial Statements of Not-For-Profits Entities”. This update details all the changes to NFP financial statements. The new rules take effect for years beginning after December 15, 2017 (i.e. 2018).

[advisoryboard]

It depends on what type of donation the donor is giving. In accordance with IRS regulations, if someone makes a cash donation and the amount is $250 or more then the organization must provide a written receipt to the donor that states the following:
1. The name of the organization and the date the donation was received
2. The amount of the cash contribution
3. A statement that no goods or services were provided by the organization in return for the contribution.

If the donor makes a non-cash donation of goods worth $250 or more than the organization must provide the donor with a written acknowledgement of the donation that contains the following information:
1. The name of the organization and the date the donation was received
2. A statement that no goods or services were provided by the organization in return for the contribution
3. A description of the non-cash goods received (the organization should not provide a value)

If the donor makes a cash or non-cash donation and received something in value back from the organization worth more than $75 then the organization must provide the following written information:
1. The name of the organization and the date the donation was received
2. The amount of the cash or a description of the non-cash goods received
3. A description and good faith estimate of the value of goods or services, if any, that an organization provided in return for the contribution.

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