By Stuart Kahan

"I am probably more comfortable in Moscow than in Los Angeles," says Michael Freedman, principal and director of the audit department of the Bethesda, Maryland accounting firm of Gelman, Rosenberg & Freedman. He refers to the amount of time he spends on the road as part of the firm’s international team in the nonprofit sector.

"It’s a fascinating practice," he adds, "because we are face-to-face with issues that are on the front pages of The New York Times and The Washington Post." These include humanitarian relief, conservation, and sustainable development efforts in Africa, Central and Southeast Asia, Eastern Europe, Russia, South America, and Latin America, where time is spent in field offices auditing books, reviewing internal controls, and consulting on procedures to ensure that monies are being spent appropriately. Robert Albrecht, also a principal and member of the international team comments "Our purpose is to provide assurance to the donors that the funds to support these programs are being accounted for properly, as well as to make recommendations to our clients who implement these programs for safeguarding their assets."

Building a Niche

Begun as a full-service practice in 1978 by Michael Gelman and Jerrold Rosenberg, the firm offers traditional accounting services including business and personal tax and financial planning, outsourced accounting, management advisory services and individual wealth management. GRF intensified its focus on the nonprofit world with the merger of Michael Freedman’s practice in 1988. Today, under the direction of managing principal, David Graling, GRF’s nonprofit activity constitutes an astounding 70 percent of its total business.

The firm represents more than 400 nonprofit organizations worldwide. This includes private voluntary organizations, member-based associations, and other charitable institutions. Six of the partners in the firm, five managers, four supervisors, 12 senior staff, and 10 staff accountants all render services to nonprofits.

The services include auditing, OMB Circular A-133 compliance, outsourced accounting, tax return preparation, strategic planning and budgeting, internal control evaluation, accounting system design and installation, policy and procedures manuals, investment policy analysis, recruiting, employee benefit and pension consulting, and review and compilation.

Freedman points out that his first three clients in this niche were the USO of Metropolitan Washington D.C., the Montgomery County Humane Society, and an organization called Sentencing Services that provided assistance to families of people in lock-up. "They all came to me in 1978 because I was leaving Peat Marwick at the time and the firm partners referred those three starting organizations. Today, we still represent the USO and the Humane Society; the other went out of business."

Freedman was always involved in nonprofit work from the time he began the practice of accounting more than 30 years ago; that was his specialty although in a big firm he explains that it wasn’t the most popular thing to do. "I have found it to be very rewarding and it’s a decision I never regretted. We believe in the invaluable work being done throughout the world by our clients to promote the health, welfare and education of its citizens."

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