[startupcfo]

My day job is running finance and corporate accounting for a tech company, with our employees and clients all within the USA. I thought I’d never have to know anything about IFRS or foreign accounting.

I have been asked by a charity that is just about to get off the ground (presumably registered in New York, but has operations in West Africa) to help them start their bookkeeping process. This will be my first foray into NFP and possibly foreign accounting.

Other than reading about restricted vs unrestricted assets in FAR, I have no clue what I’m going to do, what to read, or who to talk to.

1. What happens if we have to pay some vendors in Ghana dollars? How is that foreign currency even translated in Quickbooks? Would I report in USD or report in the foreign dollars? I figure I can’t just pay African vendors/laborers in USD, right?

2. The NFP wants to follow a social enterprise model. Is this asking for trouble if we make the social enterprise a corporation, and have a 501c(3) own the corporation? Tell me if I’m off base here.

3. To #2, what entity should be selected? Cooperative? C Corp? LLC?

4. Do I have to pay taxes and registration fees to Ghana governments if we’re registered here in the USA?

5. In the real world, how do differentiate restricted vs unrestricted assets? Do I have separate bank accounts for each pot or is it up to me to just keep track in the bookkeeping system?

BEC - 87 | 02/28
REG - 70 | 06/10, REMATCH | 08/30
AUD - XX | 09/10
FAR - XX | 12/10

[kay]

I hate to be the first comment and a downer but it sounds like you lack the skills and experience necessary to help them.
I realize this post is an attempt to discover how to get those skills, but it sounds like you shouldn't pursue this on your own.

Are you a member of your areas CPA society? Or other local CPA networking group? If you have any contacts in not for profit and international accounting sector I'd try and connect with them, see if you can find someone willing to mentor you through the process. If you can't find someone willing to take the lead and teach you, if it we're me, I'd decline the opportunity and recommend someone who has experience.

[startupcfo]

Hey, buddy – this is something I read one time on a CPA forum: “You'll never succeed if you never try.”

BEC - 87 | 02/28
REG - 70 | 06/10, REMATCH | 08/30
AUD - XX | 09/10
FAR - XX | 12/10

[Recked]

I'm with the above poster on this.
Depending on what you have to lose, and how comprehensive your liability insurance is.
I personally would not risk my reputation or exposure to get involved with this, but more power to you.
I don't think this forum is the best place for you to start your research, it's the blind leading the blind at best.
I have a few small NFP clients but I try to avoid NFP's for the most part. Although they pay no tax they can still get into penalty situations with the IRS which are pretty steep.

“Local CPA charged with helping non profit funnel money to West African scammer group/terrorist organization. Claims he did not know yet holds a major finance/accounting position at a tech company.”

#2 and #3 are legal questions and should be handled by the entities attorney. I would assume the legal entity will be dictated by both the state the entity is organized in, as well as the country the entity wishes to operate.

Good luck to you sir.

[Recked]

Wait… you ARE insured right??

Lets run this out best case scenario.
In 5 years this thing blows up into a 1-10 million/yr NFP.
Then they come to find out that you gave them legal advice that was incorrect, or worse yet, you gave them accounting advice that due to lack knowledge and experience in the area of NFP's turned out to be wrong and ends up costing them a fortune in legal fees. Or lets say it goes gang busters and turns into a 1bil/year entity. What do you imagine your exposure on this will be? You willing to risk your life savings/house/reputation? You think your wife and kids are going to stick around when you lose your house? This is obviously a worst case scenario. I admire your willingness to dive head first into something and attempt to learn on the job, but also weigh the pros and cons. Be careful.

At a minimum if you commit to this, I would hire outside help/advisers to double check your game plan as you move forward to ensure compliance. And stay away from giving legal advice. Judges are exceptionally harsh on accountants who provide legal advice.

[Author]

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