We recognize the valuable function of not-for-profit organizations in our community and are committed to serving them and assisting them in operating in an efficient and cost-effective manner.
Naden/Lean provides a full range of accounting, tax and consulting services to not for-profit entities including health and human services agencies, healthcare organizations, trade / professional associations, non public schools, civic groups, educational and charitable organizations, and labor unions.
Our dedication to the not for profit community extends to our donations, sponsorships, volunteerism and board fulfillments by our staff. We are truly passionate about the missions of the many non-profit organizations we are associated with.
Our services for not-for-profit entities include:
- Accounting and auditing services
- Creation of budget system for financial reporting and rate-setting purposes
- Preparation of vital documents, including Uniform Financial Reports (UFR) and related analyses
- Design of internal controls and auditing programs, operating procedures, and accounting systems in compliance with OMB requirements
- Not-for-profit tax returns
- Analysis of unrelated business income tax (UBIT) issues
- HUD compliance auditing
- Recruiting of financial personnel
- Internal control review and evaluation
- Federal grant compliance and yellow book audits (A-133)
- Financing agreements (negotiation and structure assistance)
- Bookkeeping and other on-going accounting
- Communication between not-for-profits and funding agencies
- Technology services including computer hardware needs assessment, selection and managed service
- Analysis of mergers, acquisitions, and joint ventures
For more information about our not-for-profit expertise or request a consultation, contact Jeff Drake, CPA.
Not-For-Profit Services Brochure
Naden/Lean supports the Maryland Association of Non-Profit Organizations, the Maryland Association of Community Services for Persons with Developmental Disabilities, Inc., Baltimore Volunteers Unlimited, The Association of Baltimore Area Grantmakers and the Standards for Excellence program.
We are often asked to provide sponsorships or other donations to various non-profit organizations. Please review the information in this PDF: Guidelines and Checklist for Sponsorship and Donation Appeals.
For an excellent informational brochure on non-profit organizations from a legal perspective, courtesy of Whiteford, Taylor and Preston, click here.
The Association of Baltimore Area Grantmakers has developed a wonderful giving workbook in order to help you establish a philanthropic program in your organization.
Naden/Lean is proud to support the Fairway to Life Breast Care Center. In addition to our annual donation we also helped Mass Mutual with their breast cancer awareness program which generated additional monetary support for the University of Maryland Marlene and Stewart Greenebaum Cancer Center.
We are especially proud of the tremendous work that Rose of Sharon Equestrian School performs. Please endeavor to support them. To learn more about their mission, contact Joan Twining at the Rose of Sharon Equestrian School.
Please visit the websites of some of our other beloved non-profit clients:
- Maryland Trust for Retarded Citizens, Inc.
- St. Elizabeth School
- Govans Ecumenical Development Corporation
- Order Sons of Italy in America
- Foundations and Donors Interested in Catholic Activities, Inc.
For an interesting article on donating clothes and other household items, click here.
We are often asked to speak to various not for profit groups and organizations. Below are a list of topics we commonly discuss. If you would like one of our experienced speakers for your event, please contact Andrew Rose.
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Seminar Topics for Non-Profits
1. Preparing for a Capital Campaign or Fund-Raising Effort. Audience: Financial Directors, Treasurers, Executive Directors, and Development Directors
This session is designed to inform the non-profit about what is likely to be expected of them by funding sources, and how to put themselves in the best light before approaching those sources. Topics discussed will include reasonable expectations of donors with regard to accountability, segregation of funds, internal controls (particularly over donated funds), possible financial reporting requirements and more. This session is designed to help the non-profit to get themselves “buttoned-up” in the eyes of prospective donors. This includes review of existing internal controls, review of financial reporting capabilities, use of proper accounting practices and more. We will discuss ways to avoid a negative reportable conditions letter which could dissuade prospective donors, preparation of forecasted financial results to demonstrate the need for funds and the ability to repay borrowed funds, if any, and consideration of multi-stage capital campaigns. Basic principles of AICPA SOP 98-2 will be discussed. Participants will leave this seminar with a sound understanding of the issues they need to address during a capital campaign or fund-raising endeavor.
2. Preparing for an Annual Audit. Audience: Financial Directors, Treasurers and Executive Directors
Run for the hills…the auditors are coming! No…it doesn’t have to be that way. This session is designed to help participants understand how an audit works and what the auditors’ responsibility is so that participants can better prepare for the audit and help make the audit process smoother, easier and less costly. We will review both managements’ and the auditors’ responsibilities in an audit, the responsibility of each with respect to fraud, what to look for in an audit engagement letter and more. We will also discuss A-133 audit requirements (for recipients of federal funds) and how those requirements differ from an audit performed in accordance with generally accepted auditing standards from the perspective of both the auditor and the auditee. We will discuss the importance of client assistance and the tremendous impact it has on the efficiency and cost of the audit process.
3. Use of Volunteers by Not for Profit Organizations Audience: Executive Directors, Human Resource Director and Board members
Buyer Beware…or you’ll get what you pay for. This session discusses the use of volunteers by not-for-profit organizations, and items to consider when using volunteers. We will review what to look out for, what to insist on and what to avoid. Don’t let a volunteer walk you into a “buzz saw”. We will discuss items to explore when interviewing volunteer candidates, reference checks and more. This discussion also gives consideration to providers of donated services. We will review ways to gauge the level of commitment of volunteers, level of responsibility and accountability.
4. Fiduciary Responsibility of Non-Profit Board Members Audience: Board members and Executive Directors
Volunteers Beware! Being a board member of a not-for-profit organization is not just a “do good” deed. In the past, many people viewed board directorships as “status” or “honorary” positions. Not any more. Recent business scandals and the advent of Sarbanes Oxley have made it clear that board members are expected to effectively govern, and those members can and will be held responsible if they fail to do so. These positions should not be taken lightly. This session is designed to discuss various aspects of the fiduciary responsibilities of not-for-profit board members. As a part of this discussion we will discuss items prospective board members should consider before accepting a board position including: officers and directors insurance coverage, past track record of the board, management integrity, other board members, history, philosophy and reputation of the organization and management, nature of the organization, financial stability of the entity, organization plans and goals, and more. We will also discuss the board members’ role in fiscal management of the organization, including a discussion of how to be effective in that role without “micro-managing”, responsibilities and expectations of donors and or members, the budgeting process, directors’ role in internal controls and more.
5. Non-Profit Budgeting - Understanding the Differences Between Financial Statements and Budgets. Audience: Financial Directors, Executive Directors, and Board members
This session is designed to walk participants through the entire budget process. We will explain what a budget is, how to effectively use it, how to prepare an effective budget, who to include in the budget process, the need to update and monitor and more. We will also discuss the use of the budget as a management tool, and how to interpret variances between actual amounts and budgeted amounts. We will define the differences between a budget and a financial statement. We will also discuss the differences between an income statement and cash flow budget, as well as discussing the various components of a budget (income and expenses, capital budget, cash flow, etc.). We will provide examples of what to consider when a budget indicates that a shortfall or deficit is coming including evaluation of expenses, re-structuring considerations, consideration of dues or tuition increases if applicable, and weighing these actions against the possible effects such as diminished service capabilities, possible membership losses, etc. We will also discuss the need for budgeting when embarking on a capital campaign.
6. Understanding and Analyzing Financial Statements for Non-Profit Organizations. Audience: Financial Directors, Executive Directors, and Board members
This session provides a discussion of financial statement terminology for non-profits, an explanation of the three basic financial statements (statement of financial position, statement of operations and statement of cash flows), discussion of other statements of non-profits including an explanation of what each represents, and how to interpret them. We will discuss the importance of comparative information, and the effect that information has on the ability of the statement user to effectively interpret financial information. Participants will learn the differences between the cash basis of accounting and the accrual method. We will discuss the three categories of net assets (unrestricted, temporarily restricted and permanently restricted) and what each represents. We will also explain the difference between designated and restricted funds. And finally, we will review functional expense breakdowns, grant accounting, donated services and more.
7. Basic Tax Considerations for Non-Profit Organizations. Audience: Financial Directors, Treasurers and Executive Directors
This session is designed to provide participants with a basic understanding of tax issues and reporting requirements related to non-profits. We will discuss forms 990 and 990T including required reporting and disclosure requirements. We will review UBIT issues, contribution reporting requirements, proper reporting of lobbying expenses, due dates, federal grant requirements, audits/reviews/compilation preparation, taxable subsidiaries, reporting requirements for charitable gifts, and more. This session is designed to help the non-profit protect its tax-exempt status by complying with applicable reporting and disclosure requirements, and to avoid costly mistakes related to its tax reporting requirements.
8. Account for Cost of Joint Activities: Fundraising. Audience: Financial Directors, Development Directors and Executive Directors
Who reads a financial statement anyway? You would be surprised - potential donors, partners and even volunteers may check out your statements more closely than you think. Be sure that you are prepared to optimize your
organization's financial well-being. Learn the many aspects of accounting for the fund-raising activities of nonprofit organizations, state and local governments. Specifically this session will address the solicitation of funds through such activities as telemarketing, newsletters and promotional mailings, or special events (galas, silent auctions, concerts, walkathons, etc.). The session will also address the accounting of fund-raising activities in accordance with SOP 98-2. Because many fund-raising activities are a joint activity meaning that the activity includes a program or management and general element, the activities must be accounted for using specific guidelines. In addition, participants will find out how to potentially gain donors or other resource providers by reflecting fundraising activities in the best way on a financial statement. This session is appropriate for nonprofits of all budget sizes.
9. Intro to Non-Profit Bookkeeping (or QuickBooks for Non-Profits) Audience: Financial Directors, Treasurers, Bookkeepers and Executive Directors
Now that you’ve established your non-profit, how do you account for payables, accruals, and other accounting concerns? This course will teach you:
- How select which QuickBooks product is best for you
- Double entries
- Importance of understanding garbage in/garbage out
- Setting up your Chart of Accounts
- Entering clean balances
- Establishing vendor databases
- Features such as: report running, closing of books, payroll and reconciliation
- Common misconceptions: no audit trail and lack of security
Other bookkeeping functions we’ll cover include:
- Establishing internal controls
- Standards and procedures
- Other accounting software options
- Understanding trial balances
10. What You Need to Know if You Are a Financial Director or Treasurer of a Non-Profit Audience: Financial Directors and Treasurers
This course is designed to give an overview of the duties and responsibilities of the person overseeing the financial management of a non-profit organization. This will encompass many of the above topics in a distilled sense.
11. Special Needs Tax Return Workshops Audience: Families with Special Needs Dependents
These seminars/workshops will familiarize participants with what tax requirements, procedures, processes, consequences and common errors there are related to:
- Form 1041 (Trust) returns.
- Gift tax returns.
- Gift special needs trusts (including valuations).
- Estate tax planning.
- General income tax planning (including tax law changes).
To schedule one of the above non-profit seminars, contact Andrew Rose, (410) 616-2036.
For a PDF of the above seminars, click here.
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