Audit, Tax and Advisory for Foundations & Grant-Making Organizations
Nonprofits are most successful at achieving meaningful change in our communities when they have the financial resources to be effective. Private foundations and grant-making public charities deliver these resources, and impact positive change in economic, social, cultural, and environmental conditions.
AAFCPAs has unparalleled experience with foundations and nonprofits and our comprehensive expertise helps foundations magnify the impact they can have by streamlining their own operations and optimizing their finances.
Regulations – We have deep knowledge of the policies, procedures and regulations of the IRS related to operating and non-operating foundations. We counsel foundation clients on matters such as self-dealing rules, distribution requirements, program-related investments, jeopardizing investments, taxable expenditures, expenditure authority rules and more.
Excise Taxes and UBIT – We work with foundations to plan, minimize and monitor excise taxes and unrelated business income tax. This includes monitoring distributions to achieve the lower tax rate of 1% and strategizing concerning investment sales transactions to mitigate significant excise taxes.
Diversified Invested Assets – Many of our foundation clients have highly diversified invested assets. We are experienced in auditing reconciliation procedures for investment and custodian statements, structuring investment spending policies, and valuation due diligence.
Alternative Investments – We work with clients with highly diversified invested assets to establish best practice internal controls over investments, including procedures for due diligence and valuation of alternative investments. We have many clients that work with investment advisers that support the due diligence process. We understand the complexities of alternative investments and methods used for valuation of these funds. We also keep abreast of applicable foreign reporting requirements and unrelated business income considerations.
Endowments – We help with complex endowments and other restricted net assets by assisting in developing and evaluating investment and spending policies, designing reporting structures, and evaluating and improving internal controls over investment activities in line with the Uniform Prudent Management of Institutional Funds Act (UPMIFA). We have implemented unitized tracking systems for clients with multiple funds within a portfolio.
Grants – We work with clients that make grants to a wide variety of local, national and international organizations. We understand the rules and due diligence related to qualified domestic grants and non-US-based organizations.
Financial Training – We teach grant makers and program staff how to read and assess a nonprofit’s financial condition through reviewing their audited financial statements and their IRS and state filings. Understanding an organization’s financial statements is critical when deciding grant awards.
Tax Status – We have substantial experience with organizations that have transitioned from private foundation status to public charity or supporting organization status, and foundations that have moved between operating and non-operating status. We provide expert guidance to such organizations with due consideration of future expected operations and sensitive relationships with key donors.
AAF provides proactive audit, tax, and advisory services to foundations and grant making organizations, including:
- Regulatory compliance and guidance concerning tax status.
- Review of internal controls and financial management for best practices.
- Calculation of financial ratios and benchmarking to industry standards.
- Streamlining of processes to facilitate all regulatory reporting.
- Advise on upcoming regulatory changes to determine potential impact.
- Examination of financial and personnel resource allocations.
- Financial training for your board of directors, management and personnel.
- Managed Accounting Solutions: Right-size, outsourced accounting solutions, from cloud-based bookkeeping to high level CFO oversight
- Business Performance, Internal Controls & IT Advisory
- Institutional investment advice, money management, financial planning & consulting, executive deferred compensation & retirement plan consulting, and succession planning solutions
- Fiduciary guidance and investment advisory solutions for employee benefit plan sponsors
- Technical Accounting Advisory: Implementation of new accounting standards, assistance with complex operational and financial transactions, audit preparation.
AAF provides audit, tax, and advisory services to 350+ local, national, and international nonprofit clients and over 40 foundations and grant making organizations. Our depth within the industry is unmatched by our peers, and gives us first-hand knowledge to keep you informed of the latest trends and opportunities.
Foundations and grant-making organizations provide resources for enhancing the vitality of the nonprofit community. AAFCPAs celebrates the many nonprofits that enrich our lives by donating 10% of our net income annually back to nonprofits.