Giving Back: Pro Bono Accounting Services
Resources for CPAs who want to make a difference.
| EXECUTIVE SUMMARY |
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| WILLIAM E. SHAFER, CPA, PhD, is a professor of accounting at California State University, Los Angeles. His e-mail address is wshafer@calstatela.edu. L. JANE PARK, CPA, PhD, is an associate professor of accounting, also at California State University. Her e-mail address is ljpark@calstatela.edu. ALICE A. KETCHAND, CPA, PhD, is an associate professor at Sam Houston State University, Huntsville, Texas. Her e-mail address is aac_aak@shsu.edu. | |
fter Gary Skerik’s father died of cancer, the Los Angeles CPA decided to volunteer his accounting expertise to assist the American Cancer Fund for Children. In 1997 Barbra Sanders, an Illinois CPA, served as treasurer for the local chapter of Habitat for Humanity, 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. 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) 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 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, below) 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
Consulting or Advisory Services
Community Service
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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 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 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 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 Club. Rachel Murray, a sole practitioner in San Francisco 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 CPA who serves as volunteer treasurer of the World Children’s Transplant fund, a not-for-profit organization that sets up organ transplant centers for children worldwide. He became interested in helping this group when his mother had a successful liver 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 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 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.
| Exhibit 2: API Affiliates | |||
| Parent Organization Accountants for the Public Interest Thurnel Business Center, Room 155 California Clearinghouse for Volunteer Accounting Services Castaic Connecticut Community Accounting Aid and West Hartford Support Center of Washington Washington, DC Florida Florida Association of Nonprofit Miami Lakes Georgia Nonprofit Resource Center Atlanta Illinois CPAs for the Public Interest Chicago | Indiana Quality for Indiana Taxpayers, Inc. Indianapolis Maryland Maryland Association of Nonprofit Baltimore Michigan Accounting Aid Society Detroit Minnesota Minnesota Accounting Aid Society Minneapolis Mississippi Mississippi Center for Not-for-Profits, Inc. Jackson New Jersey API—New Jersey East Brunswick | New York Community Tax Aid, Inc. New York City Pennsylvania Community Accountants Philadelphia Western Pennsylvania Community Homestead Rhode Island Nonprofit Resources of Southern New England Providence Virginia Virginia Society of CPAs Richmond Wisconsin Wisconsin Institute of CPAs Brookfield API Student Chapter Lincoln University Accounting Club Lincoln University, Pennsylvania | |
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 99, 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) programs, the IRS 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.
