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If you are on the finance team of a not-for-profit organization and have a December 31 year end, you are likely working with your CPA on the annual financial statements. Or, you may have just released your financials to lenders and donors.
If so, very soon your CPA may be having an uncomfortable conversation about what we CPAs call ‘subsequent events.’ Those are things that happen after the end of the year and are so significant that the events might need to be disclosed in the financial statements.
In the last week or so, major sectors of the U.S. economy have been shut down for the immediate future. These actions will have a radical impact on certain industries and a mere dramatic impact on other industries. There may be direct impact on many charities, (such as performing arts companies, or conference centers). There will likely be indirect ripple effects on lots more charities.
To help you ponder the possible impact on your organization, read the following comments. The discussion is focused on other industries, but consider whether the broad trend might affect your charity.
Posted by Jim Ulvog 
