Giving back: pro bono accounting services.EXECUTIVE SUMMARY
* THERE ARE NUMEROUS OPPORTUNITIES for CPAs to make a difference in their communities. Many volunteer accounting services are provided through such not-for-profit groups as Accountants for the Public Interest (API (Application Programming Interface) A language and message format used by an application program to communicate with the operating system or some other control program such as a database management system (DBMS) or communications protocol. ).
* VOLUNTEERS COME FROM ALL SECTORS of the accounting profession, including public accounting firms, private industry, government and education. Services offered commonly include consulting on accounting and auditing matters and providing accounting or income tax assistance and help in preparing for audits. Services are offered only to qualifying organizations, such as small not-for-profit organizations or businesses that cannot afford to pay, and individuals, such as poor, elderly and disabled taxpayers.
* MOST VOLUNTEER WORK is motivated mo·ti·vate
tr.v. mo·ti·vat·ed, mo·ti·vat·ing, mo·ti·vates
To provide with an incentive; move to action; impel.
mo by the personal satisfaction that comes from helping others. Public service can also contribute to the development of a practice and help CPAs expand their professional skills and their areas of expertise.
Resources for CPAs who want to make a difference.
After Gary Skerik's father died of cancer, the Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. CPA (Computer Press Association, Landing, NJ) An earlier membership organization founded in 1983 that promoted excellence in computer journalism. Its annual awards honored outstanding examples in print, broadcast and electronic media. The CPA disbanded in 2000. decided to volunteer his accounting expertise to assist the American Cancer Fund for Children. In 1997 Barbra Sanders San´ders
n. 1. An old name of sandalwood, now applied only to the red sandalwood. See under Sandalwood. , an Illinois CPA, served as treasurer for the local chapter of Habitat for Humanity Habitat for Humanity, nonprofit ecumenical Christian organization that enables low-income people to own affordable, livable housing. Headquartered in Americus, Ga., it was founded in 1976 by businessman Millard Fuller and his wife. , taught a free course on not-for-profit reporting for board members of several Illinois resource conservation and development corporations, and helped achieve tax-exempt status for a group that provides free medical services in Central America Central America, narrow, southernmost region (c.202,200 sq mi/523,698 sq km) of North America, linked to South America at Colombia. It separates the Caribbean from the Pacific. . Every year since 1993, Cheryl Cruz, a CPA, attorney and accounting professor, has trained a group of her students to participate in the IRS-sponsored Volunteer Income Tax Assistance (VITA (VMEbus International Trade Association, Fountain Hills, AZ, www.vita.com) A trade association that supports the VMEbus and other open standards. Founded in 1984, VITA was accredited as an ANSI standards development organization in 1993. See VMEbus. ) program. These are but a few examples of the thousands of CPAs who volunteer their time to worthwhile causes.
FOR THE PUBLIC GOOD
CPAs have numerous opportunities to make a difference in their communities. Many provide pro bono Short for pro bono publico [Latin, For the public good]. The designation given to the free legal work done by an attorney for indigent clients and religious, charitable, and other nonprofit entities. accounting services through not-for-profit groups such as Accountants for the Public Interest (API). API has 21 affiliate organizations nationwide that coordinate pro bono efforts by matching volunteer accountants with individuals and organizations that need their expertise. The volunteers come from all sectors of the accounting profession, including public accounting firms, private industry, government and educational institutions. Although the services offered through API affiliates vary widely, they commonly include consulting on accounting and auditing matters and providing accounting or income tax assistance and help in preparing for audits. Services are offered only to qualifying organizations, such as small not-for-profit organizations or businesses that cannot afford to pay for them, and individuals, such as poor, elderly and disabled taxpayers.
The types of services offered by various API affiliates (see exhibit 1, at right) illustrate the breadth of public interest accounting work. In a recent year, more than 7,400 API volunteers provided assistance to over 45,000 organizations and individuals. In addition, CPAs from all areas of the profession also participate in other groups in their communities, doing various forms of public interest accounting work.
Exhibit 1: Services Provided Through API Affiliates
Direct Accounting Assistance
* Tax preparation, including participation in IRS-sponsored Volunteer Income Tax Assistance (VITA) programs.
* Preparation for the annual audit.
* Reduced-rate auditing.
* Designing and implementing accounting and control systems.
* Staff training.
Consulting or Advisory Services advisory services
advisory services provided to the public, in their capacity as owners and managers of animals, are an important part of veterinary science. They may be provided by government bureaux, by commercial companies who deal in pharmaceuticals or animals or animal
* Tax matters.
* Financial management.
* Loan or grant applications.
* Responsibilities in reporting to government agencies.
* Business start-up consulting.
* Providing free or low-cost seminars and workshops on accounting and finance.
* Publishing accounting guides and newsletters for not-for-profits.
* Serving on a not-for-profit's board of directors.
* Advising local government agencies or public schools on a variety of accounting, tax and other financial issues.
* Assisting in reconstructing records for victims of fires, floods, hurricanes and other disasters.
* Speaking at high schools about accounting careers.
* Giving lectures at high schools on basic accounting concepts, such as taxes, financial planning Financial planning
Evaluating the investing and financing options available to a firm. Planning includes attempting to make optimal decisions, projecting the consequences of these decisions for the firm in the form of a financial plan, and then comparing future performance against and personal cash management.
* Sponsoring conventions for not-for-profits.
* Mentoring for women or minority small business owners.
* Offering bilingual bi·lin·gual
a. Using or able to use two languages, especially with equal or nearly equal fluency.
b. assistance to small, minority-owned businesses.
* Mentoring university accounting students.
Most large CPA firms encourage employees to participate in volunteer activities--some even provide time off with pay for such participation. Frierson and Associates, P.C., a midsize local firm in Houston, provides a good illustration of pro bono work among smaller practitioners. The firm's managing partner, Ray Frierson, has provided a variety of volunteer services, such as serving on not-for-profit boards of directors and helping with fund-raising events. The firm has also provided auditing and accounting services for a number of emerging not-for-profits at significant discounts. According to according to
1. As stated or indicated by; on the authority of: according to historians.
2. In keeping with: according to instructions.
3. Frierson, "The discount is a function of several factors, including the type of organization, its ability to pay, and the ancillary benefits of being involved with it. For instance, several years ago I was introduced to an organization created to protect the habitat of the Monarch butterfly in Mexico. After one visit to the nesting grounds high in the mountains of Mexico--and having my entire body covered with butterflies--I was so overwhelmed o·ver·whelm
tr.v. o·ver·whelmed, o·ver·whelm·ing, o·ver·whelms
1. To surge over and submerge; engulf: waves overwhelming the rocky shoreline.
a. I provided my accounting services free for years."
WHY CPAs VOLUNTEER THEIR SERVICES
Most people volunteer primarily because of the personal satisfaction they get from helping others. Gary Condie, incoming president of the Los Angeles chapter of the California Society of CPAs, says he gains a sense of fulfillment ful·fill also ful·fil
tr.v. ful·filled, ful·fill·ing, ful·fills also ful·fils
1. To bring into actuality; effect: fulfilled their promises.
2. when he volunteers. Condie has provided an array of services, among which was serving on boards of directors for both a hospital and the Boys and Girls boys and girls
mercurialisannua. Club. Rachel Murray, a sole practitioner in San Francisco San Francisco (săn frănsĭs`kō), city (1990 pop. 723,959), coextensive with San Francisco co., W Calif., on the tip of a peninsula between the Pacific Ocean and San Francisco Bay, which are connected by the strait known as the Golden who provides free accounting services for a small not-for-profit organization, says her volunteer efforts were motivated by the realization of what's really important in life.
CPAs often volunteer for organizations whose goals they support or with which they feel an emotional connection. A good illustration is Bob Mayeri, a Beverly Hills Beverly Hills, city (1990 pop. 31,971), Los Angeles co., S Calif., completely surrounded by the city of Los Angeles; inc. 1914. The largely residential city is home to many motion-picture and television personalities. CPA who serves as volunteer treasurer of the World Children's Transplant fund, a not-for-profit organization that sets up organ transplant organ transplant: see transplantation, medical. centers for children worldwide. He became interested in helping this group when his mother had a successful liver transplant liver transplant Hepatic transplant Transplant surgery A procedure that replaces a cancer conquered, metabolically defeated, or substance subjugated liver with one no longer required by its owner, many of whom donate same after an MVA Diseases requiring transplant in 1994. Gary Skerik not only volunteers with the American Cancer Fund for Children, but also for Film Makers United, a small organization that assists young film makers. Because Skerik's firm has many ties to the film industry, he has been able to use his contacts to aid this group.
Ray Frierson says his volunteer work not only has been personally fulfilling but also has contributed to the development of his practice. In addition to the personal contacts that can be made with managers and directors of not-for-profits, community service can enhance a firm's public image.
Volunteer work can also help CPAs develop their professional skills and expand their areas of expertise. Paul Glass, president of the Clearinghouse for Volunteer Accounting Services in California, said many volunteers develop valuable skills--for example, in communication and interpersonal in·ter·per·son·al
1. Of or relating to the interactions between individuals: interpersonal skills.
2. relations. After Rachel Murray volunteered to help a not-for-profit organization achieve 501(c)(3) status, she felt she could offer the same service to potential clients.
Pro bono services can benefit the accounting profession by enhancing the public image of CPAs. The AICPA AICPA
See American Institute of Certified Public Accountants (AICPA). Code of Professional Conduct recognizes a commitment to serve the public interest, and participation in pro bono services is one way CPAs can demonstrate this commitment, thereby increasing public trust in the profession.
HOW TO VOLUNTEER
CPAs are probably already aware of numerous not-for-profit organizations in their own communities. For more information, the API affiliates shown in exhibit 2, page 97, typically maintain a roster of organizations and people in need of assistance and attempt to match them with the skills and time commitments of volunteers. There are also other sources of volunteer opportunities. For example, some state CPA societies conduct public service programs not affiliated with API. In addition, through its VITA and Tax Counseling for the Elderly (TCE TCE
TCE Environment A volatile chlorinated hydrocarbon that boils at 88ºC and is highly soluble–1000 ppm in water, with various industrial uses Toxicity Peripheral neuropathy, carcinogenic. ) programs, the IRS An abbreviation for the Internal Revenue Service, a federal agency charged with the responsibility of administering and enforcing internal revenue laws. assists poor, elderly, disabled and non-English-speaking taxpayers to comply with federal and state tax laws. While some VITA/TCE programs are administered through API affiliates, most are conducted directly by the IRS and state tax authorities with the assistance of "volunteer coordinators" who are often experienced CPAs. Information on participation in the VITA/TCE programs may be obtained from state tax authorities. No matter where CPAs channel their energies, they will find pro bono work to be a satisfying experience.
Exhibit 2: API Affiliates
Parent Organization Accountants for the Public Interest at the University of Baltimore Thurnel Business Center, Room 155 1420 North Charles Street Baltimore, Maryland 21201 Phone: 410-837-6533 Fax: 410-837-6532 California Clearinghouse for Volunteer Accounting Services Castaic Phone: 805-295-8912 Fax: 805-295-8333 Web site: cpateam.com/cvas.html Connecticut Community Accounting Aid and Services, Inc. West Hartford Phone: 860-570-9113 Fax: 860-570-9107 Web site: www.cs-cpa.org/cass District of Columbia Support Center of Washington Volunteers for Community Service Washington, DC Phone: 202-833-0300 Fax: 202-833-0077 Web site: www.scw.org Florida Florida Association of Nonprofit Organizations Miami Lakes Phone: 305-557-1764 Fax: 305-821-5228 Web site: www.special-event. com/fano Georgia Nonprofit Resource Center Atlanta Phone: 404-688-4845 Fax: 404-521-0487 Illinois CPAs for the Public Interest Chicago Phone: 312-993-0407 Fax: 312-993-9432 Web site: www.icpas.org/cpaspi.htm Indiana Quality for Indiana Taxpayers, Inc. Indianapolis Phone: 317-974-0736 Fax: 317-974-0768 Web site: www.qfit.org Maryland Maryland Association of Nonprofit Organizations Baltimore Phone: 800-273-6367 Fax: 410-727-1914 Web site: www.mdnonprofit.org Massachusetts Community Tax Aid, Inc. Boston Phone: 617-330-4721 Fax: 617-439-9731 Michigan Accounting Aid Society Detroit Phone: 313-961-1840 Fax: 313-961-6257 Minnesota Minnesota Accounting Aid Society Minneapolis Phone: 612-636-8770 Fax: 612-636-8772 Web site: www.ci.stpaul.nm.us/ businessJaccttaxstp-html Mississippi Mississippi Center for Not-for-Profits, Inc. Jackson Phone: 601-968-0061 Fax: 601-352-8820 Web site: email@example.com New Jersey API--New Jersey East Brunswick Phone: 732-249-7565 Fax: 732-249-8158 New York Support Center for Nonprofit Management API--Accounting Aid Program New York City Phone: 212-924-6744 Fax: 212-924-5544 Community Tax Aid, Inc. New York City Phone: 800-225-0256 ID #98741 Pennsylvania Community Accountants Philadelphia Phone: 215-893-9333 Fax: 215-893-9339 Web site: www.libertynet/org./ commacct Western Pennsylvania Community Accountants, Inc. Homestead Phone: 412-462-9722 Fax: 412-462-3275 Web site: trfn.clpgh.org/orgs/wpca/ index.html Rhode Island Nonprofit Resources of Southern New England Providence Phone: 401-861-8930 Fax: 401-273-0540 Web site: www.not-for-profit resources.org Virginia Virginia Society of CPAs Public Service Volunteer Program Richmond Phone: 804-270-5344 Fax: 804-273-1741 Web site: www.vscpa.com Wisconsin Wisconsin Institute of CPAs Public Interest Committee Brookfield Phone: 800-772-6939 Fax: 414-785-0838 Web site: www.wicpa.org/opport.html API Student Chapter Lincoln University Accounting Club Lincoln University, Pennsylvania Phone: 610-932-8300 Fax: 215-932-8317
WILLIAM E. SHAFER, CPA, PhD, is a professor of accounting at California State University, Los Angeles California State University, Los Angeles (also known as Cal State L.A., CSULA, or "'CSLA"') is a public university, part of the California State University system. . His e-mail address See Internet address.
e-mail address - electronic mail address is firstname.lastname@example.org. L. JANE PARK, CPA, PhD, is an associate professor of accounting, also at California State University Enrollment
. Her e-mail address is email@example.com. ALICE A. KETCHAND, CPA, PhD, is an associate professor at Sam Houston State University Sam Houston State University, (known as SHSU and Sam, for short) founded in 1879, is a public university located in Huntsville, Texas. It is one of the oldest purpose-built institutions for the instruction of teachers west of the Mississippi River and the first such , Huntsville, Texas Huntsville is a city and micropolitan area located in the U.S. state of Texas within Walker County. As of the U.S. Census 2000, the city population was 35,078. Huntsville is the home of Sam Houston State University. . Her e-mail address is firstname.lastname@example.org