Online donation increase is notable
The Blackbaud Index reported that online charitable giving to nonprofits jumped 8% for the first half of 2014 compared with the first half of 2013, while overall charitable giving increased 1.6% for the same period. In addition, for the three months ending June 2014, compared with the same period in 2013, online giving grew 8.7%, and overall charitable giving increased 1.5%. The Blackbaud Index analyzes fundraising data from more than 4,200 U.S. not-for-profits.
Charity Navigator evaluates major philanthropic markets
Charity Navigator has published a report on the performance of the 30 largest U.S. philanthropic marketplaces. The watchdog group considered the financial health, accountability and transparency of these charities. According to its report, regional factors — such as the cost of living, a market’s maturity and a city’s tendency to support one or two specialized causes — greatly influence the ability of charities to raise money, manage costs and adhere to good governance policies and procedures.
St. Louis’s not-for-profit sector ranked as the top performer overall. Portland charities had the greatest commitment to ethical best practices, and Miami charities were the most efficient fundraisers. Boston not-for-profits proportionately received the most donations.
New service concession arrangements standard could affect NFP accounting
The Financial Accounting Standards Board (FASB) has released Accounting Standards Update (ASU) No. 2014-05, Service Concession Arrangements, its initial guidance on the reporting of these in financial statements. A service concession arrangement is made between a public-sector entity grantor and an operating entity, such as a not-for-profit, under which the operating entity operates or maintains the grantor’s infrastructure, as can be the case with airports, roads, prisons or hospitals. FASB believes these arrangements may become more prevalent as governmental agencies seek alternative ways to provide public services more efficiently.
ASU 2014-05 also addresses the conditions under which the operating entity shouldn’t account for a service concession arrangement as a lease.