Author Archives:
Erin Carter

As Georgia nonprofits and other tax-exempt entities return from the holidays, it’s time to settle in and get re-focused on managing various service programs and delivering needed assistance. While the last few months may have been focused on year-end financial reporting, tax planning and budget preparation for 2020, there was an important change made in 2019 impacting how nonprofits file their tax returns.

Saving for retirement is something that every individual needs to tackle especially during the prime earning years. Ensuring there is enough money available to fund spending in retirement is a necessity since the benefits offered through social security are simply insufficient to the task. While it sounds logical, there are several obstacles that have made it more difficult for retirement savings to occur.

This is a special distribution taken from a 401(k) (or other plan types) to help the participant with an immediate and heavy financial need. The need can be directly attributed to the participant or be a need of the participant’s spouse, dependent, or in some cases non-spouse or non-dependent. A hardship distribution may not exceed the amount of the participant’s need but may include the amount needed to pay for penalties and taxes which may arise.

The answer to this important question will vary between companies and industries. There are some Atlanta companies that naturally face higher fraud exposure because of the type of business, how services are delivered and where the opportunity for fraud occurs. Whatever your industry, it’s important to understand your company’s risk profile and areas of opportunity for fraudulent activities.  While most focus on growing the company through strategic planning, new business development, customer service, and account management, it’s imperative not to overlook this important exercise.

The firm will be hosting a free lunch and learn on September 27, 2019, from 11:00am -1:30pm, to be held at the Georgia Center for Nonprofits. The presentation, Understanding Your Organization’s Financial Statements, has been custom-tailored to give executives foundational knowledge on financial reporting, which includes how to assess fiscal fitness through overall strategic planning. There is no cost for the event and lunch will be provided during the session.

In Atlanta, there are many firms that can provide an audit to your nonprofit organization. After reviewing the promotional materials, websites and related messaging, it may appear they are equally qualified to manage the task. While each may meet the broad technical qualifications to conduct the audit, it doesn’t necessarily mean they are a good fit for your organization’s needs. The truth is that each organization, it’s management and Board of Directors has differing needs which some firms are better suited to manage than others. Although technical competence is certainly a necessity there are other criteria that an organization needs to assess during the proposal review stage.

The demands of managing a not-for-profit organization can be challenging. There is a need to balance the passion of accomplishing the organization’s mission and the practical requirements to ensure funding exists to fuel operations. These priorities exist against the backdrop of employee recruiting, engagement and benefits administration. To attract and retain employees (a challenge for many), several Atlanta nonprofits offer 403(b) plans as a benefit. These plans are an essential tool to help with retirement savings and require careful administration.

Many Atlanta business owners and individuals may have heard the alarming news that Capital One’s systems were compromised leaving sensitive data exposed. It was reported that information on 100 million US customers was compromised from credit card applications (both small businesses and individuals) submitted between 2005 and early 2019. Information such as names, address, social security numbers, income information, phone numbers, and emails was exposed. It also appears that information on credit scores, limits and balances were also taken. The FBI has formally pressed charges against the suspected perpetrator who is believed to have acted alone. This situation has left many wondering what steps they can take to determine if they were impacted and how to protect themselves.

Almost all the decisions made about the retirement plan are driven by employee wants and needs. When creating or changing the plan, it’s important to think about investing habits, aversion to risk, and goals for the future. Should you give similar attention to the wants and needs of your former employees? Under most defined contribution plans, former employees are permitted to keep assets in company plans even after they have left the company.  If your plan has low or reduced fees and a wide range of investment options, you may be inadvertently incentivizing former employees to stick around. Is it a good strategy to keep inactive participants in your plan? Will managing their assets help or hurt you in the long run?

The success formula can be a tricky puzzle with many pieces to position in the right spot. Atlanta nonprofit organizations, whether focused on providing services to the homeless, low-income families or an association serving a specific profession, face many of the same challenges in reaching their goals. Not only do issues around fundraising and income generation require attention, but other areas such as program management, marketing, human resources, and donor management are also important. In addition, management must focus as well on accounting issues such as financial reporting, tax planning, compliance and more.