Advancing the Mission of Not-for-Profits

Operating a successful not-for-profit organization is a complex and demanding task. To fulfill their unique missions, these organizations must comply with multiple layers of accounting and reporting regulations, successfully navigate the grant process and achieve high levels of efficiency – all with limited resources.

Not-for-profits need comprehensive support to reach their goals while remaining in compliance with applicable regulations. Our depth of knowledge and Yellow Book certification means not-for-profit clients can count on us as their one-stop shop for strategic consulting, assurance and tax services.

SOLVING BUSINESS ISSUES

“An Achievable Dream is supported by so many companies and individuals in our community, and it is imperative for our organization to be a good steward of their investments. Our reputation depends on that stewardship. With the same high standards and values for which An Achievable Dream strives, our accounting firm of choice is PBMares. They represent the epitome of integrity and excellence.”

Kathy Edwards, Executive Director, AN ACHIEVABLE DREAM

PBMares delivers a full range of customized services that add value to help you fulfill your mission.

The not-for-profit community is made up of many types of organizations with one common goal – fulfilling their mission. That’s our goal, too. Our experience in this unique and challenging industry includes foundations, community human services and crisis intervention agencies, healthcare organizations, educational providers and related organizations, museums and historical sites, the public broadcasting industry, national fraternal organizations, economic development partnerships and trade associations.

Bringing a thorough understanding of the many facets of operating a not-for-profit organization, PBMares provides:

Accounting

Outsourced Accounting

Not-for-profit accounting is complex and can be especially challenging when staff and funding are limited. Outsourced accounting can help ensure consistency and accuracy of bookkeeping and accounting, providing access to specialized expertise unavailable within the constraints of small organizations and scarce resources. Larger not-for-profits with internal accounting departments can also benefit from outsourcing these functions, since accounting from multiple funding sources and allocating expenses appropriately requires a unique set of skills and knowledge not readily found in the marketplace.

Outsourced accounting provides organizations of all sizes with the advanced knowledge and accounting resources they need to maintain timely, accurate accounting while eliminating the burden of hiring, training, supervising and managing internal accounting staff. Our outsourced accounting team can even provide outsourced or interim CFO services to help not-for-profits meet the full spectrum of your financial planning and management, accounting and bookkeeping needs.

New Accounting Standards

Are you fully prepared for impending financial statement changes and new revenue recognition standards? All not-for-profit organizations are required to implement these new standards, but many are unsure how to apply them to the organization’s financial accounting and reporting. PBMares offers advice and insights that clarify the latest requirements, helping you prepare for and implement these changes as you transition to comply with the latest standards.

Audit & Assurance

Agreed-Upon Procedures

You frequently require specific services that do not demand the full scope or expense of standard assurance techniques. Cash controls, particular transactions or balances, for example, may be appropriate for independent examination without an accompanying assurance opinion. PBMares works with you to provide the agreed-upon procedure you need, tailoring the services to fulfill your individual needs. After establishing a detailed list of services to be rendered, we design testing procedures and thoroughly investigate the areas of concern. When observation and testing are complete, we provide a complete recitation of our testing procedures and results in each area, allowing clients to draw the appropriate conclusions based on these detailed performance reports.

Audit and Assurance

As a not-for-profit, you need regular assurance services to fulfill regulatory requirements and to demonstrate to organization leaders, donors, lenders and other funding sources that the organization is sound and well managed. Those that receive $750K or more in federal funds are required to perform Federal Audits compliant with 2 CFR Part 200, or Single Audits. Smaller organizations may opt for less stringent assurance services that satisfy standards set by individual states and funding sources.

A proactive stance to seeking high-quality assurance services shows your commitment to meeting high standards for transparency and organizational performance. However, choosing more stringent assurance services than what is needed may waste valuable resources that could be better used in pursuit of your mission. PBMares provides timely, responsive assurance at all levels, helping your organization remain in compliance and allowing you to approach lenders, donors and funders with confidence. In addition to rigorous audits and exceptional service, we provide assistance in evaluating the many factors that govern which level of assurance may be best in your situation and determining the most appropriate services for your needs.

Internal Controls

How can you protect your organization from loss through theft, fraud or mismanagement? A proactive and vigilant approach to internal controls helps you minimize these threats and demonstrate responsible stewardship of donated resources. You will receive individualized internal control consulting to enhance your organization’s compliance efforts and boost donor confidence. We conduct a thorough review of policies and procedures, offering insightful recommendations and implementation support for improvements to increase efficiency, effectiveness and compliance with internal and external standards. Whether you’re pursuing corrective action to address previous findings or seeking proactive support to identify potential vulnerabilities, PBMares’ internal control consulting services help your organization stay strong, secure and compliant.

Consulting

Cybersecurity and Risk Control

Like many organizations, you operate in a threat-intensive environment where a single data breach can mean disaster for your donors, staff and programs—not to mention your reputation! Take action to identify and minimize you cyber risks with cybersecurity services. We provide information systems vulnerability and penetration testing, risk assessments and a host of other cybersecurity services that can help protect your organization from the growing risks of cyber crime. A cyber risk assessment not only helps you sleep better at night, it can also lead to reduced cyber insurance premiums.

Fraud Investigations

With limited resources and staff, you may find that you have inadequate internal controls, leaving you vulnerable to theft or fraud by untrustworthy individuals. PBMares’ forensic accounting specialists understand your concerns and help you rule out the possibility of fraud. If fraud has occurred, we’ll help you identify the event(s), reconstruct the trail and employ preventative measures to minimize future risks.

Investment Advisory and Management

Your investment in your endowment is the lifeblood of your organization. What do you do with this critical resource? Ensure it’s invested appropriately and effectively with investment advisory and management services. We evaluate your current investing strategy to verify your funds are invested in accordance with your organization’s investment policy. In addition, we provide knowledgeable, experienced investment advisory and management services to help you gain maximum value from all of your available resources.

IRS Audit Support

Most people consider an IRS audit to be an extremely stressful process. Anxiety regarding an audit is reasonable since the ramifications to your organization can be significant. An overzealous IRS agent could even cause you to lose your charitable status, resulting in a serious loss to the organization and those you serve. While many IRS agents lack familiarity with the special accounting and reporting tactics that are utilized by not-for-profits, PBMares is well versed and brings extensive experience to support your organization in the event of an audit. As your partner, we provide comprehensive representation to support your position and ensure that you are treated fairly during an audit.

Mergers and Acquisitions

With so many organizations pursuing overlapping goals, it’s not surprising that today’s not-for-profit environment is one of consolidation. Mergers and acquisitions provide new opportunities to leverage combined resources and enable you to pursue your mission more effectively. However, they also carry risk. Mergers and acquisitions can affect nearly every area of your operations like your nuanced identity and perception within the donor community, for example. They also come with many financial, tax and procedural consequences.

We help you untangle the complex issues that affect the relative success and ultimate benefit of a potential merger or acquisition, with services that include:

Business valuation
Due diligence
Structuring the merger and the combined organization for maximum benefit
Determination of appropriate accounting strategies
Evaluating potential tax and compliance consequences
Organizing for efficiency after a merger or acquisition
Assessing board governance changes

Plan Design and Administration

You devote yourself to taking care of others. PBMares helps you care for the people who spend each day helping you make a difference through benefits plan consulting and third party administration. As a tax-exempt organization, you have many retirement plan options to choose from: 403(b), 401(k) and others may all be appropriate. We offer complete benefits plan support, from helping you select the plan that’s right for your organization to designing and administering your plan for maximum impact and efficiency.

Tax

Tax Planning and Compliance

Your annual returns are publicly available information that can be accessed through watchdog groups such as CharityWatch, Guidestar and Charity Navigator, among others. That means tax compliance isn’t simply a responsibility, but an opportunity to increase fundraising potential with donors and granting organizations. You should use your tax reporting as a marketing tool while simultaneously complying with complex tax laws.

If you have Unrelated Business Income Tax (UBIT) that must be reported on Form 990T, you know it poses a particular challenge. We bring extraordinary depth of knowledge to help you identify UBIT activities, minimize or offset the associated tax liability and properly report these activities.

Fulfill your reporting requirements and avoid the many pitfalls with the following tax compliance and consulting services:

Form 990 and 990T reporting
Identifying taxable activity
Advising on expense allocation
Strategies to limit taxable exposure
Assessing potential tax impact of new programs, acquisitions activities
Income offset strategy