CohnReznick 2017 Not-for-Profit Governance and Financial Management Survey

Optimism Amid Uncertainty: Addressing Revenue, Risk, and the New Accounting Standards

The 2017 CohnReznick Not-for-Profit Governance and Financial Management Survey finds that not-for-profit industry leaders are feeling much more confident about their organizations' governance practices. 65% of respondents reported being “very confident” in their organizations’ governance policies and procedures—the highest confidence level in three years. 

Just 3% reported that they are “not confident.” Much of this growing sense of security in governance lies in the action steps the organizations have taken. From IT-related measures, such as cybersecurity breach response planning to non-IT-related actions, like record recovery and disaster recovery plans, organizations are increasingly implementing governance and risk management policies to protect themselves.

Report highlights include:

• IT and Cybersecurity appear to be a greater concern for NFPs in 2017 versus 2016
• More organizations are reporting that they are conducting self-assessments and training programs
• Diversity & Inclusion: 57% of respondents believe that their organizations are at least “fairly diverse,” just 31% have the same feeling about their board
• Only one quarter of respondents said that they either have a good understanding of, or feel comfortable implementing, ASU 2016-14 – the new financial reporting standard for not-for profit organizations

CohnReznick cannot stress enough the importance for not-for-profit organizations to review the information needed for applying the three new standards (ASU 2016-14, Lease Accounting, and Revenue Recognition) and to devise a precise plan for implementation. We can assist your organization with a process for understanding and implementing one or more of the new standards.

_{This has been prepared for information purposes and general guidance only and does not constitute legal or professional advice. You should not act upon the information contained in this publication without obtaining specific professional advice. No representation or warranty (express or implied) is made as to the accuracy or completeness of the information contained in this publication, and CohnReznick LLP, its partners, employees and agents accept no liability, and disclaim all responsibility, for the consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this publication or for any decision based on it.}