Learning Center

Audit Committee Presentations: How to Communicate More Effectively with Nonprofit Leadership

Nonprofit Update (PPC) / By S. Davis & Associates

Effective communication between auditors and audit committees is essential for strong nonprofit governance. However, many audit committee presentations fail to deliver meaningful insights, leaving members overwhelmed with data rather than equipped with understanding. Under Generally Accepted Auditing Standards (GAAS), auditors are required to communicate key audit matters clearly to those charged with governance. Yet, compliance …

Audit Committee Presentations: How to Communicate More Effectively with Nonprofit Leadership Read More »

Nonprofits and the Foreign Agents Registration Act: What You Need to Know About FARA Compliance

Nonprofit Update (PPC) / By S. Davis & Associates

Many nonprofit organizations assume that the Foreign Agents Registration Act applies only to political operatives or foreign lobbyists. In reality, the law can apply to routine nonprofit activities such as grantmaking, conferences, partnerships, and international collaboration. As enforcement efforts increase and regulatory scrutiny expands, nonprofits must reassess whether their activities could trigger registration requirements under …

Nonprofits and the Foreign Agents Registration Act: What You Need to Know About FARA Compliance Read More »

Don’t Surrender Your Responsibilities When Using AI in Auditing

Best Practices for Responsible AI Use in Auditing

Nonprofit Update (PPC) / By S. Davis & Associates

Artificial intelligence is rapidly transforming the auditing profession. From data analysis to contract summarization and continuous monitoring, AI tools are helping firms streamline workflows and improve efficiency. However, as auditors embrace these technologies, a critical risk emerges—overreliance. While AI can enhance productivity, it cannot replace professional judgment, skepticism, or accountability. Understanding how to use AI …

Best Practices for Responsible AI Use in Auditing Read More »

Expenditure Responsibility: What Private Foundations Need to Know Under IRC Sec. 4945 (Part I)

Nonprofit Update (PPC) / By S. Davis & Associates

Expenditure responsibility is one of the most important compliance requirements for private foundations when making grants. Under IRC Sec. 4945, private foundations must ensure that grant funds are used strictly for charitable purposes or risk facing excise taxes. While these rules primarily apply to private foundations, they also provide valuable guidance for public charities on …

Expenditure Responsibility: What Private Foundations Need to Know Under IRC Sec. 4945 (Part I) Read More »

Court Rejects Johnson Amendment Settlement Agreement

Court Rejects Johnson Amendment Settlement: What It Means for Nonprofits in 2026

Nonprofit Update (PPC) / By S. Davis & Associates

The long-standing restrictions on political activity by tax-exempt organizations remain firmly in place after a recent federal court decision. In National Religious Broadcasters v. Bessent, a proposed settlement that could have significantly narrowed enforcement of the Johnson Amendment was rejected. While some organizations hoped the case would provide clarity or relief from existing rules, the …

Court Rejects Johnson Amendment Settlement: What It Means for Nonprofits in 2026 Read More »