Latest posts
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How should your nonprofit account for pledges?
A successful fundraising campaign can generate commitments that stretch well beyond the current year. Those pledges can help your nonprofit plan ahead. But when should they appear in your financial statements, and for how much? Under U.S. Generally Accepted Accounting Principles (GAAP), the answers depend on the terms of each promise, expected payment schedule and…
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Special estate planning considerations may be necessary if you have nonbiological children
Modern families come in many forms. A household may include biological children, adopted children, stepchildren or children of an unmarried partner. Even though family members may view all of these children equally, inheritance laws often do not. That distinction can have significant consequences if your estate plan doesn’t clearly reflect your intentions. Whatever your family…
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Restricted gifts and your nonprofit’s responsibility
Donor restrictions can limit how contributions may be used (such as to fund a program) or when they may be used. Those terms can help connect donor priorities with your nonprofit’s work. But they also create obligations that your organization must understand and monitor. Using a gift in a way that violates its terms can…
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Take the guesswork out of gifting hard-to-value assets with defined-value gifts
Transferring wealth to family members can reduce your taxable estate. But when gifts involve assets that are difficult to value, such as interests in a closely held business or family limited partnership (FLP), unexpected tax consequences can arise. The challenge is that the IRS may disagree with the value assigned to a gifted asset. If…
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Get your nonprofit ready for audit season before year end
Spring audit fieldwork may seem distant when your nonprofit is busy with year-end fundraising and program demands. But for organizations with a December 31 year end, the final months of 2026 offer a valuable opportunity to organize records, resolve accounting questions and coordinate with auditors. Reconcile and support balances An annual financial statement audit can…
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A family education trust can benefit generations to come
Helping your children, grandchildren or other loved ones obtain a quality education can be one of the most meaningful ways to pass on your wealth. A tax-advantaged 529 plan is one effective tool for funding tuition and other educational expenses. But when the plan’s owner (typically a parent or grandparent) dies, the next owner might…
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Working teens can maximize the power of tax‑deferred — or tax-free — compounding with an IRA
Retirement is far from most teenagers’ minds when they get their first jobs. Most young people are more interested in spending their earnings or saving for a shorter-term goal. But those early earnings create a significant financial opportunity: decades of potential tax-advantaged growth. Even modest contributions to an IRA now can substantially multiply over time.…
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Make more timely business decisions with interim financial reports
If you decide to hire new employees, adjust prices or expand operations, you shouldn’t rely on financial information that might be months out of date. And this may be the case if your business generates only one set of financial statements annually. Interim financial reports can provide a fresher picture of operational performance and strategic…
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Separating or divorcing this year? Consider these tax issues before year end
Dissolving a marriage involves numerous financial and nonfinancial decisions, and tax considerations can easily fall by the wayside. But decisions made before your divorce is finalized can affect your current-year income tax liability and your tax situation in future years. Let’s look at some of the most critical tax issues to consider as you work…
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Cost vs. coverage: Renewing your business’s employee health plan
If your business’s renewed employer-sponsored health insurance plan starts at the beginning of the calendar year, you’re probably negotiating next year’s rates now or will be soon. The stakes are high and rising: Preliminary survey results from Marsh (whose Mercer business advises employers on health benefits) project that employers’ health benefit costs per employee will…
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The benefits of increasing your 401(k) contributions before the year runs out
As 2026 draws to a close, your employer’s 401(k) plan may offer an opportunity to reduce your current income taxes while building your retirement savings — or to boost your future tax-free retirement income. If you haven’t been contributing, it may not be too late to start. And if you’re already contributing, increasing the amount…
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What business owners need to know about the accounting cycle
The accounting cycle is used to record, organize and summarize financial activity for a specific period. Also known as the bookkeeping cycle, it’s designed to produce accurate data that will help business owners understand performance, manage cash flow and plan for the future. Properly prepared financial records can alert owners to operational issues before they…