The Lightning Rod M/M Blog

Should Charities Get The Vote?

Charities lobbying government for attention and support is nothing new.  Indeed, such activity is an important part of the nonprofit sector's work.  But the charity/government connection seems to be morphing into a charity/politics connection.  Time Magazine reports that charities are actively seeking "face time" with the presidential candidates.  Bill Gates is spending $60 million for "Ed in 08" to put education issues on the candidates' platforms, and the Chronicle of Philanthropy reports that numerous foundations are taking similar steps to get their issues traction in the upcoming elections.  Some pundits worry that this activity at the campaign level gets dangerously close to violating the "don't advocate for any political party or candidate" rule.  Not me.  I say revoke that law. 

Charities are affected by who gets elected,because those who get elected make the laws that affect charities.  Government regulation of nonprofits at all levels is increasing and proposals are afoot to have government policy affect which charities givers choose to support and how much charities must spend. 

It is entirely appropriate, therefore, for charities to ask candidates to declare their positions on the issues that affect them, but since the real issue is "who gets elected" that is not enough.  It's time we eliminated the restriction that nonprofit groups must not advocate for any political party or candidate.  Give nonprofit corporations the same rights to affect politics as for-profit corporations have.  Nonprofits have just as much at stake.  Let them endorse, let them organize, and -- most importantly -- let them send money.  When the various interest groups within the nonprofit sector start forming their own PACs, watch the candidates beat a path to their doors.

Of course it's not going to happen.  But maybe it should.

 

FASB 157 Heads Up

In case you missed it, here's a friendly heads up that the Financial Accounting Standards Board, the organization that develops "generally accepted accounting principles," has issued new guidance regarding how your CPA should report the "fair market value" of your organization's assets and liabilities in your financial statements.   It is effective for financial statements for fiscal years beginning after November 15, 2007.

FASB 157 requires your CPA to determine "fair market value" (FMV) of your assets and liabilities rather than "book value."  It specifies three methods to determine FMV and requires the financial statements to disclose which method was used.  This shouldn't be a problem if your organization owns publicly registered securities, but determining the FMV of other non-cash assets, such as real estate, collectibles, closely-held stock, etc. can present lots of challenges to determine value.  That , in turn, could lead to an increase in your CPA fees.

If your organization does in fact have such assets or liabilities, I suggest talking to your CPA sooner rather than later so you are prepared to mitigate the potential impact of 157 on your audit expenses.