This issue focuses on accounting, auditing, taxation, and management issues specific to the not-for-profit and government sectors. Although these entities present unique challenges to the CPAs that serve them, they are also increasingly subject to the same scrutiny that for-profit businesses have long faced. Not-for-profit organizations and governments have had to innovate their operations, and, perhaps as a direct result, they are facing increasing risks and uncertainties.
Public service announcements can be a powerful tool for not-for-profit organizations to spread their message, and the most successful campaigns have become as iconic as the largest corporate brands. Steven Edelman and Denise Moritz discuss the complex accounting issues surrounding this form of gift-in-kind revenue.
State and local governments that have found themselves strapped for revenue have turned to alternative methods for tax collection. James Boyle and Charles Lenns turn their attention to governments’ controversial use of contractors paid on a contingent fee basis for taxpayer audits—auditors that therefore have a direct financial incentive to collect the highest amount of taxes.
The current economic climate has been characterized by increased risk and uncertainty for all entities, and not-for-profit organizations are less distinct from for-profit businesses in this respect than ever before. Ron Ries provides advice on how not-for-profit organizations can mitigate and manage both internal and external risks. David Rottkamp and Nina Bahazhevska discuss CPAs’ role in ensuring that not-for-profit organizations have the financial stability and sustainability necessary to fulfill their core mission. And Mike Burns highlights the role of audit committees in understanding the most significant risks facing an organization.