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Nonprofits Accounting

All nonprofit organizations are not the same: just as their missions are different, so are their business needs especially nonprofits accounting needs. In the current environment, the demand for accountability and transparency is the new normal. A single financial misstep that creates actual or perception that fraud has occurred in your operations could lead to the undoing of your firm. One way to mitigate this risk is to partner with JS Morlu to handle your nonprofit accounting, leading to stronger controls over your financial statements.

What Is Nonprofits Accounting?

Nonprofits accounting is anything but ordinary, requiring a different set of procedures and policies to stay in compliance with regulatory agencies and donors. Instead of focusing efforts on earning a profit for the owners, nonprofits direct their attention to community initiatives and accountability within the accounting department. Nonprofits use fund accounts to track money going in and coming out, which can be tricky if you aren’t well versed in accounting for 501 c 3s. Every dollar earned or spent needs to be properly documented as investors and government agencies will be watching closely. Additionally, proper nonprofit accounting can help detect fraud and noncompliance early on, leading to a minimized impact on the nonprofit.

The Importance of Accounting For 501(c)(3)

Taxpayers, foundations, and donors, including government agencies, cannot stomach a single event of fraud, especially fraud that could have been detected with a reasonable level of systems and controls in a timely manner. You have probably heard or read of not-for-profit organizations being debarred by the United States Government because funding was mismanaged in foreign countries and the mismanagement was covered up, ignored, or not detected in time for the audit. On the other hand, a solid financial management system could increase more business for your firm.

No doubt, a high priority is being placed on adequate and reliable financial reporting. Your board, donors, members, and other constituents need the confidence that your financial statements are fairly presented and that internal control issues have been properly addressed. All businesses, including nonprofit organizations, need the assurance that an independent, objective audit has been performed completely in accordance with professional standards.

Why JS Morlu For Your Nonprofits Accounting Needs?

You may not have the staff or the expertise to handle all the intricacies of meeting the challenges of financial management and reporting. This could be even more difficult for not-for-profits that are working in multiple countries or with funding from variety of donor agencies and foundations. Our dedicated CPAs and consultants understand economic cycles and are able to measure the impact of these trends on planned giving, tax planning and investment climates. As a full service accounting firm, our diversity and depth of resources are true benefits for our valued clients. We know that your organization is more than just its mission – it is a multifaceted business environment. At JS Morlu, we believe that the best client is an educated client and we are eager to share our knowledge with you.

What Services Does JS Morlu Offer?

JS Morlu provides their clients with a complete list of accounting services, tailoring to every need of your nonprofit. No task is too big or too small here at JS Morlu. We help nonprofits in every industry understand where their nonprofit accounting falls short to implement viable changes with JS Morlu by their side. Accounting for private foundations as well as accounting for charities will require different services, which is why we offer a wide variety of services to fit your nonprofit needs. Our fee structure isn’t a set price for each nonprofit. Instead, we customize our services and pricing model to fit what you need. Money is not our top priority when it comes to nonprofits. Instead, we focus our efforts on providing value to your nonprofit at a reasonable price. For a customized quote package, reach out today. We are proud to provide the following traditional accounting services tailored to meet the needs of the nonprofit or association client:

  • Accounting Services
    • Internal Audit
    • Financial Statements
    • General Ledger
    • Monthly and Year-End Close Payroll
    • Account Reconciliations
    • Accounting Policy and Payroll
    • Chart of Account Setup
    • Grant Close-Outs
    • A-133 Audit Readiness
    • 501 © Audit Readiness
    • Accounting System Setup and Implementation
  • Grant Management
    • OMB Compliance
    • Indirect Cost Rate Development
    • Time and Billing Systems
    • AIDAR Compliance
  • Industry Specific Consulting
    • Accounting System Review
    • Internal Controls
    • Cost Allocation
    • Non-Dues Revenue Program
    • Accounting System Process Documentation
    • Recipient Certificate of Compliance (Consistent with 22 CFR 226.40-226.49)
  • Accounting System Solutions
    • Sage 50
    • QuickBooks Desk & Online
    • Sage Intact
    • Acumatica
    • Deltek GCS Premier
    • Deltek Cost Point
  • CRM Solutions
    • Kindful
    • Network for Good
    • Bloomerang
    • Charityproud
  • Tax
    • Form 990 Preparation and Consulting
    • Unrelated Business Income
    • State and Local Tax
    • International Tax
    • FIN 48 Analysis and Documentation
  • Assurance
    • Financial Audits
    • Operational Audits
    • Review and Compilation
    • International Financial Reporting Standards (IFRS)
    • Special Reports
    • Internal Control Reviews
    • Operational Reviews
  • Regulatory Audit
    • A-133 Audits and Related Topics
  • Forensic Accounting Services
    • Litigation Support
    • Fraud Investigations

What Are The Benefits Of Having A Regular Nonprofit Audit?

There are a wide variety of benefits of having a nonprofit audit, from financial transparency to increased shareholder confidence. Nonprofits need to have financial transparency to attract new donors and keep existing donors happy. Who would want to give their money to a nonprofit that can’t clearly show what the funds are being used for? Especially with new nonprofit scandals making headlines every week, an audit by an independent third party is even more critical. Moreover, when an accounting firm, like JS Morlu publishes a clean audit opinion, your nonprofit can use those financials to apply for grants and federal funding. Lenders almost always require an independent third party to look at the financials before a loan is given, making JS Morlu an asset to have on your side. Increase donor contributions and have a better chance of being awarded grants with a nonprofit audit by JS Morlu.

What If I Don’t Need An Audit?

If an audit still doesn’t seem necessary for your nonprofit, we guarantee that JS Morlu can help you in some way. All nonprofits can benefit from another party looking over the financial statements monthly to detect any mistakes. For some nonprofits, outsourcing the entire accounting function proves beneficial because it takes a burden off the board of directors’ plate and allows them to focus on generating more donations or applying for different grants. It takes an entire team to successfully run a nonprofit.

Additionally, nonprofits are subject to special taxation and financial reporting rules, which need to be meticulously followed as regulatory agencies are closely watching. Ensuring you have a qualified accountant to turn to when you are unsure on how to record a transaction or receive a letter in the mail can keep your nonprofit running smoothly. Moreover, the annual nonprofit return needs to be file timely and accurately, which JS Morlu has the capabilities to do. From keeping your accounting up to date to giving you the resources to stay in compliance with regulatory agencies, JS Morlu is there for you every step of the way.

Can JS Morlu Handle My Foundation Too?

Funding foundations are channeling funding through local and international not-for-profit organizations, international organizations, and foreign governments. The challenge for foundations is ensuring that all those billions spent are actually reaching the intended beneficiaries in these developing countries. Foundations and beneficiaries want the same thing: accountability and transparency of the funds. How can foundations be assured that all the AIDS drugs and other interventions are reaching to the intended recipients? Simply put, with JS Morlu handing the accounting for private foundations.

With global expertise in auditing and forensic accounting services, coupled with localized knowledge, JS Morlu, LCC can provide the solutions and ease of mind for foundations. We have networks and contacts with more than 35 state auditing agencies in Africa, the Caribbean and Southeast Asia. We also have local and international experts of auditors and investigators, without borders, who are uniquely positioned to produce high quality and objective reports.

At JS Morlu, we understand foundations would rather spend scarce financial resources on services. With our knowledge of the local environment and our extensive network of consultants and experts, we use a risk-based approach and the 80/20 Rule. Through risk profiling, we can assist Foundations concentrate their audits and investigative efforts on 20% of the projects and programs to achieve 80% of the solutions. And we can do it with 60% of the cost it will take to contract a Big 4 accounting firm for same quality of work. We can offer you the following foundation services in conjunction with our nonprofit accounting services:

  • Audit and Assurance Services
    • Financial Statement Audits of programs and projects
    • Operational Audits, examining the management of programs and projects for efficiency and effectiveness
    • Compliance Audits to ensure contractual provisions and operational agreements are being met
  • Forensic Accounting and Anti-Corruption Services
    • Forensic Audits in cases of fraud or suspected fraud intended to find evidence, which can be used in subsequent proceedings
    • Financial Crime Litigation Support, including evidence gathering and analysis, testifying in court, and documenting analysis
Does My Nonprofit Need to File A Tax Return?

Simply put, yes. Even though nonprofits aren’t a profit-driven business, they still need to file an annual tax return. Form 990 is where your nonprofit will report transactions for the year and pay any taxes. Activities associated with the primary purpose of the business are generally tax-exempt, however unrelated business income is subject to certain taxes. In order to minimize this tax, most nonprofits pass the filing burden off to a qualified accountant who can properly report different income classes. The information presented on Form 990 is available to the public with federal agencies relying on the information for grant determination, so you want to be sure the information is accurate. Inaccurate information filed leads to fines and penalties, most of which small nonprofits can’t afford to pay. To mitigate any risk associated with filing your return, pass the baton off to JS Morlu.

How Can I Get Started With JS Morlu?

Accounting for private foundations as well as accounting for charities and accounting for nonprofits can add to your growing to-do list. Instead of stressing over monthly bank reconciliations or filing the annual tax return, cross it off your list and contact JS Morlu. The process of getting started has never been easier. First, we will set up a meeting, whether that be virtual or in-person, to go over the needs of your nonprofit. Then, we will strategize the different ways we can provide value to you, from setting up monthly bookkeeping work to scheduling a full audit. We are here to provide value to you and help your nonprofit through any accounting or tax situation. With over 10 years of experience, we have a team of experts you can rely on. Don’t wait until the tax deadline has passed or you’re late for a required bank audit. Reach out today to get started with your consultation.