News & Blog
What Nonprofits Need to Know About Underwater Endowments
Nonprofits work hard to steward their endowment funds wisely, but in times of market volatility or economic uncertainty, even the best-managed investments can dip below their original value. When this happens, organizations may find themselves managing what’s known as an underwater endowment — a scenario with specific accounting and disclosure requirements. Understanding when an endowment is considered…
A Nonprofit Leader’s Guide to Reviewing 990s with Your Board
For nonprofit leaders, one of the most important responsibilities is equipping the board with the insight and tools they need to advance the organization’s mission. That includes presenting key financial documents like the annual Form 990—an IRS filing that offers a comprehensive snapshot of your nonprofit’s operations, finances, and governance. But Form 990 isn’t just…
Stronger Together: The Power of an Engaged Board in Turbulent Times
When organizations face turbulent times—whether due to economic uncertainty, leadership transitions, industry disruption, or public scrutiny—boards can either be a lifeline or a liability. Unfortunately, many boards tend to retreat into passivity or micromanagement under pressure. As an executive or board chair, your challenge is to steer the board toward active, constructive engagement that strengthens…
Mastering Cash Flow: A Nonprofit’s Guide to Financial Stability
Cash flow is the lifeline of any nonprofit — it keeps your mission moving, your programs running, and your team focused on impact. While fundraising and donor support often grab the spotlight, it’s cash flow management that ensures financial stability day in and day out. Why Every Nonprofit Needs a Cash Flow Plan Effective cash…
How to Stay Compliant When Managing USAID Funds
As the landscape of U.S. foreign aid continues to evolve under the current administration, organizations receiving USAID funds face heightened expectations around transparency, accountability, and impact. While funding priorities may shift, the need for strong financial stewardship remains constant. For implementing partners, maintaining full compliance with USAID grant requirements is not just a matter of…
Why Form I-9 Compliance is a Priority for Nonprofits — Now More Than Ever
For nonprofit organizations, mission comes first. But even the most purpose-driven workplaces aren’t exempt from federal employment laws. One area that often flies under the radar—until it’s too late—is Form I-9 compliance. Regardless of your size—whether you’re a well-established nonprofit or a small, grassroots team—every U.S. employer is legally required to complete and retain Form I-9,…
Ensure Your Nonprofit Stays on Track: Must-Know Tax Filing Dates
April marks a significant period for nonprofits, not only as a precursor to the May 15 deadline for 990 filings but also as a month punctuated with critical deadlines of its own. Important Updates for the May 15 Filing Season Due to significant IRS staffing cuts, nonprofits should expect delays in processing final returns and…
Revenue Recognition in Nonprofits: A Guide for Accounting Professionals
Revenue recognition is a critical component of financial reporting and compliance for any organization. While both nonprofits and for-profits record revenue when they deliver goods or services, nonprofits also receive unique revenue streams in the form of grants and contributions. These contributions can come with restrictions and/or conditions. Properly classifying and recording these transactions is…
Navigating Political Activity: What Nonprofits Need to Know
With the 2024 election behind us, it’s critical for nonprofit leaders to reflect on whether their organizations engaged in any political activities last year and ensure they meet compliance requirements. This article breaks down the key types of political activity nonprofits may engage in and provides actionable steps to help your organization stay on track.…
The Importance of Financial Stewardship: A Guide for Nonprofit Boards and Management
Nonprofits thrive on strong financial stewardship—it’s what keeps their mission alive and earns the trust of donors, funders, and stakeholders. Good stewardship means having clear policies, staying on top of oversight, and ensuring compliance. Even when outsourcing key financial functions, the responsibility to stay accountable and manage resources wisely falls on both boards and management.…
Navigating Uncertain Times: Key Steps Nonprofits Should Take Now
In the past few weeks, nonprofits across the country have been scrambling to understand the implications of the new administration’s policies. From federal freezes (and unfreezes) to halts on global foreign aid, shifting funding priorities, the threat of tariffs, and more, uncertainty has become the norm. As organizations work to navigate these turbulent times, it’s…
Bridging the Gap: How Outsourced Accounting Can Help Nonprofits Thrive Amid Staffing Challenges and Funding Uncertainty
Nonprofit organizations operate with a unique set of challenges, balancing financial sustainability while staying focused on their core mission. Tight labor markets and uncertainty around funding have made it increasingly difficult for nonprofits to hire and afford a full-time accounting professional. With the growing shortage of skilled accountants, outsourcing accounting functions has emerged as an…
2025 IT Security Checklist: Safeguarding Your Nonprofit’s Mission
Nonprofits are increasingly targeted by cyber threats, making IT security more important than ever. As stewards of sensitive donor data, financial information, and organizational plans, nonprofits must prioritize cybersecurity. This checklist outlines essential actions to strengthen your defenses and protect your mission in 2025. 1. Ensure Proper Access Management Start by reviewing who has access…
1099 Filing Made Easy: How to Stay Ahead All Year Long
Filing 1099 forms can be a daunting task, especially if left until the last minute. With the January 31st deadline looming, many businesses find themselves scrambling to meet IRS requirements. However, staying ahead all year long can make the process seamless and stress-free. Below are five essential tips to ensure you’re ready for 1099 filing…
New Year, New Controller: How to Hit the Ground Running in 2025
Entering a new organization can be a daunting task for anyone, but as a new Controller, it’s imperative that you get up to speed quickly in order to make sure that there are no interruptions to day-to-day business practices. Focusing on the three Ps – Planning, People, and Processes – can help you transition smoothly…
Close with Confidence: How a Strong Year-End Close Sets the Stage for Audit Success
A good year-end close ensures financial accuracy, compliance, and reliable reporting, providing a clear picture of the organization’s performance. It’s also the cornerstone for achieving audit readiness. A solid year-end close sets the stage for a smooth and efficient audit process. In this article, we are highlighting the key steps for your year-end close as…
What Nonprofits Need to Know About Current Estimated Credit Losses – CECL
Have you been hearing the term CECL in financial and accounting circles? CECL, pronounced “sea seal” is the common short-hand for Accounting Standards Update (ASU) 2016-13, Financial Instruments – Credit Losses (topic 326). CECL doesn’t just apply to financial institutions, it applies to nonprofits too. The main goal of the standard is to improve financial…
Gifts Policy
Why Every Nonprofit Needs a Gift Acceptance Policy For nonprofits of all sizes, a clear and comprehensive gift acceptance policy is essential. It ensures that as the methods of giving continue to expand, the organization remains steadfast in its mission, efficient in its operations, and unwavering in its ethical standards. As donors diversify their investments,…
Crypto
Does Your Nonprofit Have a Crypto Plan? It May Be Time To Adopt One As digital currencies like Bitcoin and Dogecoin gain popularity, more donors are looking toward these novel assets as a means to contribute to their favorite causes. The landscape of charitable giving is evolving, with cryptocurrency donations emerging as a noteworthy trend.…
Donor Advised Funds
3 Benefits of Donor-Advised Funds Use of donor-advised funds has increased over time and for good reason—they provide multiple perks to donors. There are more ways to give and more nonprofits to give to than there ever have been, according to the National Philanthropic Trust, a charity that manages nearly $30 billion in charitable assets.…
Tracking Nonprofit Trust
For nonprofits, trust is everything More people trust nonprofits than other institutions, therefore, upholding financial integrity is critical. Trust is earned, and nonprofits can show they are responsible stewards of donor money through clear and accurate finance and accounting practices. A nonprofit’s success is, to a degree, a reflection of the extent to which people…
Your organization received an unexpected influx of funding. Now what?
Receiving unrestricted funds can be a blessing for any nonprofit, but the key to leveraging a windfall is in how well you plan. The best gifts come without strings attached. For nonprofits, these come in the form of unrestricted funds. These donations allow organizations the freedom to use or distribute the money where they see…
Is Your Nonprofit Sitting on Too Much Cash?
Maintaining a cash reserve is key to an organization’s financial strategy. But don’t let too much excess cash just sit there — use it to invest in your mission. Investing isn’t something that most people consider themselves experts in. For many of us, making investment decisions is usually tied to distinct moments in our lives,…
Maximizing Nonprofit Effectiveness: A Guide for Boards and Management
Navigating the dynamics between nonprofit boards and management can be daunting. But mutual understanding and effective communication can propel your organization toward its goals. In the nonprofit world, the synergy between an organization’s leaders and its board members forms the foundation for success. Collaboration, communication, and mutual respect are essential components for driving impactful change.…
5 Ways to Elevate Your Nonprofit’s Rating
Han Group experts share tips on how to elevate your GuideStar profile — and achieve well earned recognition. Reaching Platinum status on GuideStar is a worthwhile goal that any nonprofit would be proud to achieve. But more importantly, the journey to reach this top tier on GuideStar — the go-to clearinghouse that rates nonprofits based…
News Flash: 2024 Uniform Guidance Updates for Recipients of Federal Funds
The most extensive changes to the Uniform Guidance in ten years are slated for an effective date of October 1, 2024. Here we share highlights of key changes of impact to nonprofit recipients of federal funding: HIGHLIGHTS of KEY CHANGES: Single Audit Requirement Threshold Raised from $750,000 to $1,000,000 De Minimis Indirect Cost Rate Raised…
3 Ways Nonprofits Are Using AI
Nonprofits can reap the benefits of AI by starting small, prioritizing trust, and remembering that the best results rely on human oversight. Nonprofits are facing persistent staffing headwinds in 2024. Burnout, high turnover, and high vacancy rates can make it difficult to meet program goals, prompting nonprofit leaders to ask: how can we do more…
Critical Tax Deadlines for Nonprofits This April
Ensure your nonprofit stays on track with these must-know tax filing dates. April marks a significant period for nonprofits, not only as a precursor to the May 15 deadline for 990 filings but also as a month punctuated with critical deadlines of its own. The following list of April tax deadlines highlights filings that, while…
Safeguard your tax-exempt status with flawless finance records
Nonprofits should have a document management system in place to ensure accurate recordkeeping. Poor recordkeeping can jeopardize nonprofit organizations’ tax-exempt status. Organizations must retain certain records to maintain lawful compliance with the US government to protect their status. Without certain documents, nonprofit organizations are subject to lose their exempt status and could be further penalized.…
Burnout Becomes Big Threat Facing Nonprofits
Beyond being short-staffed for program and service delivery, organizations also face risks when they are short-staffed in their finance department. Nearly half of nonprofit leaders said staff issues were the biggest challenges their organizations faced in early 2023, according to the State of Nonprofits 2023 report from The Center for Effective Philanthropy (CEP). The main…
What every nonprofit board should know about your 990
A nonprofit leader’s guide to reviewing 990s with your board. As a nonprofit leader, one of your main responsibilities is providing the board of directors the insight and resources they need to bring your nonprofit’s mission to life. Part of that job is presenting financial documents, like the annual Federal Form 990, which is an…
Webinar: Navigating Nonprofit Rules for Political Activity
With the 2024 presidential election heating up, nonprofit organizations that participate in political activity need to ensure they understand and follow all rules regarding political activity and lobbying. It’s an election year, which means increased political activity. As always, it’s critical for nonprofits to properly follow the rules around political activity and lobbying. To provide…
3 Things to Know When Creating a Reserves Plan
Preparing for the unexpected is a given in the nonprofit sector. Because nonprofit leaders know that their organization’s financial status can change relatively quickly, especially if a major funder discontinues support. A 2023 study of nonprofit financial health uncovered the troubling reality that many nonprofits face: In 2022, there was a 10% decrease in donor…
Navigating compliance as a 501(c)(4) tax-exempt organization
Here’s a helpful guide for these organizations, especially when it comes to political activity and lobbying. Nonprofit leaders understand all too well that they have a profound duty when it comes to legal and ethical oversight of their organization’s activities. Congress’s chief tax-writing arm, the Committee on Ways and Means, recently announced it was evaluating…
Han Group Joins Prestigious International Accounting Association LEA Global
As a firm built on collective expertise and a passion for empowering nonprofits, we’re thrilled to be part of LEA Global’s mission of enabling members to achieve more together. We are excited to announce that Han Group has recently been accepted into LEA Global, a professional association connecting over 140 of the world’s top accounting…
It’s about to get easier to communicate with the IRS. Here’s why.
The IRS’s new fiscal year guidance plan lays out strategic goals that aim to improve efficiency, communication, and customer experience. By Han Group The IRS’s new fiscal year guidance plan is focused on improving the taxpayer experience and interaction with the agency, said Deep Master, a Tax Manager at Han Group who helps nonprofit clients…
Trends in funding and donor flexibility signal opportunity for nonprofits in 2024
Nonprofits are built for moments of difficulty. While the impact of the pandemic, inflation, and revolutions in the labor market, to name a few challenges from recent years, have presented difficulties for many organizations, nonprofits are built for—and often built in response to—difficult times. Recent challenges may have even sparked positive changes that are beneficial…
New Rules Increase Accountability for Supporting Organizations
New Treasury rules tighten oversight of supporting nonprofits — organizations designed specifically to provide support to a public charity. Here are five ways these rules may affect the relationship between supporting and supported organizations. The Treasury Department recently issued new guidance to ensure that supporting organizations are serving the interests of their affiliated public charities.…
Navigating Nonprofit Audits: 5 Simple Lessons
The key to a smooth audit starts with a year-round approach to planning. Taking stock at the end of a year is an important way for a nonprofit to track its successes and highlight opportunities for growth. An organization might track how many people it served or how many new volunteers it engaged. It might…
Does Your 990 Tell a Story? It Should.
There’s hidden potential in your nonprofit’s annual tax form. If you work for a nonprofit, you may have played a role in filling out Form 990, an annual reporting document that most tax-exempt organizations must file with the IRS. Properly filing a 990 is essential to keeping a nonprofit’s tax-exempt status, and failure to do…
Public Accounting’s True Potential
There’s a CPA shortage stemming, in part, from a misperception that accountants perform monotonous, boring tasks. But those of us in the industry know how invigorating it can feel to empower our clients to achieve their missions. I’m a fan of the legal drama Suits, which follows the lives of ego-driven, well-dressed attorneys at a…
Han Group Receives Recognition as One of WBJ’s Top 50 Largest Accounting Firms
Han Group is honored to announce that we have been ranked #40 among the top 50 largest accounting firms in the Greater Washington area by the Washington Business Journal. This recognition is a testament to our team’s dedication, hard work, and commitment to excellence in the public accounting industry. We are immensely proud of…
Dive into “Underwater Endowments” in GWSCPA’s featured article by Jan McDaid, CPA, of Han Group
McDaid’s article, published on the GWSCPA’s Nonprofit Accounting Basics website, explores the essential components of an organization’s underwater endowments such as: When is an endowment considered underwater? How are underwater endowments properly displayed on the financial statements? What additional information is required to be disclosed in the notes to the financial statements? And other key information. Check out this…
Han Group Announced as Gold Sponsor for GWSCPA 2023 Women’s Leadership Conference
We are thrilled to announce that Han Group, a leading accounting and consulting firm, is the gold sponsor for the Greater Washington Society of Certified Public Accountants’ (GWSCPA) 2023 Women’s Leadership Conference. As a gold sponsor, Han Group will play a key role in supporting the conference and promoting gender diversity and leadership in…
News Flash: Important News for Nonprofits
PPP Loan Forgiveness Deadline – Don’t Miss It! Can you skip the wait for your Bank’s PPP Loan Forgiveness process? – SBA Launches New Direct Portal for Loan Forgiveness 2nd Draw PPP – SBA Introduces COVID Revenue Reduction Score Extension of Deferral now Possible for PPP Loans in Appeals Process IRS reviewing EIN status –…
Han Group Selected as a Best Accounting Firm to Work For
We are honored to be recognized by Accounting Today as one of the “Best Firms to Work For”! This award is designed to identify, recognize and honor the best employers in the accounting profession. Read Article “The firms on this list represent the best workplaces in the accounting profession, they are outstanding places to build a career.” Daniel…
Office Spotlight: Brady Saunders on Nonprofits
Working with nonprofits gives members of our team a unique perspective on not only accounting and consulting, but also their personal lives. Brady Saunders, Audit Supervisor, explained what he thought the most important elements of nonprofit service were and how his work with nonprofits has impacted his life. Saunders has been at Han Group since…
