Nonprofit Management             NEW AG Guidelines!!!

I do not believe there is one area of financial and accounting management as poorly understood as the nonprofit environment.

 Four Factors outside of the nonprofit environment create this poor understanding:

 1) I cannot speak about nonprofits without encountering someone’s belief that nonprofit organizations are ‘no profit’ in nature. Or that the majority of nonprofits still receive funding through donations. Or that 100% of donations should and can go to direct services.

 Nonprofit organizations now make up TEN PERCENT of the gross national product (GNP). Donations to nonprofits remain at two to three percent of GNP for the last forty years. This means between seventy to eighty percent of nonprofit funding comes from sources other than donations.

 2) Grants and other funding from federal and state governments make up a diminishing source of nonprofit funding since 1980.

 3) Added to flat donations and diminishing government support is the proliferation of nonprofits. The number of nonprofits continues to grow.

 This translates into increased number of nonprofits in competition for flat donations and less government funding. The People Saving the Blue Whale are competing for funding with Lets Save the Humpback Today.

 4) The final challenge to the nonprofit world as they faced increased competition for reduced dollars was the dramatic increase in regulation and public review of nonprofits.

·         In 1984, Congress passed the Single Audit Act placing many nonprofits under accountability standards established by the same government reducing funding to nonprofits.

·         In 1993, the accounting profession adopted the first accounting standards for nonprofit organizations. Government and other watchdog groups immediately called for implementation of these standards.

·         In 1997, Congress made nonprofit Board members and other individuals personally responsible for nonprofit salaries that the IRS considers ‘excessive’.

·         In 2000, nonprofit organizations in New Mexico with 990 revenue of $500,000 or greater will be required to complete an outside audit by a CPA and file the document with the New Mexico Attorney General.

 It is ALL about the MISSION

 Stephen A. Avery, CPA offers specialized resources to the nonprofit organization geared toward developing systems that provide nonprofit management and Board members with critical financial information that is timely and necessary for furthering the nonprofit mission.

 Non longer can Board members and key staff not address financial management. Excellent financial management is now a requirement of regulation and survival. The critical work of the nonprofit cannot move forward without these necessary systems. It is all about stewardship.

 Basically, Stephen A. Avery, CPA utilizes the firm’s specialized skill sets and commitment to the nonprofit mission to apply state-of-the-art financial management systems to the nonprofit environment. Clients range from nonprofit with revenues under $100,000 a year to those in the millions.

 Steve Avery started his career in the nonprofit management world, a second generation nonprofit manager. His love for this area continues as he works to improve the nonprofit mission through better financial management. Contact the firm today to review how we can help you in this critical area.   

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