Adoption of final regulations for the Internal Revenue Service (IRS) Intermediate Sanctions (Internal Revenue Code (IRC) 4958) in 2002 prompted many 501 (c)(3) and (c)(4) organizations to formally designate a board-level committee with specific responsibility for oversight of the compensation of their most senior-level executive position(s). This governance structure was a practice adopted long ago Read More…
As part of sound financial management practices, management has a responsibility to evaluate its nonprofit organization’s ability to continue as a going concern (i.e., the organization’s ability to continue operating both financially and programmatically for a reasonable period of time). This review by management should occur every time the financial statements are prepared and made Read More…
Data from a survey of 261 leading U.S. companies, including 62 Fortune 100 companies, reveals they contributed more than $25 billion in total giving in 2013, equivalent to around 1 percent of pre-tax profits, or more than $600 per employee, according to an article in The Conversation. According to the 2014 Fundraising Effectiveness Survey, 43 Read More…
Issuance of Uniform Guidance On December 19, 2014, the joint interim final rule was issued by the Office of Management and Budget (OMB) implementing the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards at 2 CFR 200 (Uniform Guidance) in the Federal Register. This joint interim final rule incorporates the implementing regulations Read More…
Although it is not common to have a tax-exempt status revoked, it does happen. Decrease the chance that your organization’s tax-exempt status could be revoked by following these rules: Corporate Records: All nonprofit organizations must keep good records. These records should consist of, at a minimum, the original articles of incorporation, including any amendments, bylaws, Read More…
A donor’s perception of your organization is very important in making the decision on where to contribute their hard earned dollars. It is useful to think about how donors view your non-profit organization. Some questions donors may consider include the following: Are the organization’s resources allocated in the most efficient manner in order to fulfill Read More…
The requirements for preparing and filing information returns, such as Federal Forms 1099 and W-2, apply to all businesses, including Exempt Organizations. In fact, on page 5 of the Form 990, Return of Organization Exempt from Income Tax, there are questions that must be answered as to the number of Forms W-2, W-2G and 1099 Read More…
Many individual taxpayers overlook the benefit of deducting “non-cash” charitable contributions. These are donations of property, rather than donations of money (cash, check, or credit card). You are entitled to deduct the current fair market value of the property as a charitable contribution. However, the problem is that for the most part, the charitable organization Read More…
If a business entity wants to become a tax-exempt organization, it is not enough to incorporate the organization in a state as a non-profit organization. In the past, if you wanted to apply to the Internal Revenue Service to become a Section 501(c)(3) charitable organization (which is required for individuals to be able to deduct Read More…
Many individuals who are active volunteers for charities may not be aware that there are tax deductions available for their unreimbursed out-of-pocket expenses incurred while acting as a volunteer. These tax deductions are considered to be cash charitable contributions. They include the following: Away-from-home travel expenses while performing services for a charity, such as airfare, taxis, Read More…
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