Category: Nonprofit
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Update on nondisclosure of charities’ donor rule
Revenue Procedure 2018-38 remains controversial. Lawmakers (mostly Democrats) are concerned that it could encourage the flow of dark money into the tax-exempt sector. Their concern is valid. I know of private foundations that have already reorganized as public charities to take advantage of the secrecy rule change for their own benefit. No doubt, this rule…
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Questions about TechSoup
My largest block of clients are charitable organizations. In that nonprofit field the company TechSoup is a popular vendor of technology services. A few recent events cause me to ask more questions. I’ve made a few purchases for clients through them. TechSoup markets “donated and specially discounted technology offers”. But lately I’ve noticed that specific…
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Two tips for new nonprofit organizations
There are more than a million nonprofit businesses in the U.S. with more every day. State requirements that new cannabis companies be in nonprofit form bring more attention. Yet most nonprofit organizations are small volunteer-driven businesses with small budgets. They still need to make smart business management decisions, beginning with the business start-up. Starting out…
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Accounting for volunteer services provided to a nonprofit organization
The accounting treatment of services donated to a nonprofit frequently comes up in conversation. This blog post is meant to simplify three of the most common scenarios if those discussions: Should a nonprofit include the value of donated services in its reported revenue? No, unless the contributed service either: 1) creates a new non-financial asset,…
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How to set up clergy payroll
The treatment may vary slightly under different states but this is how we set up clergy payroll in New Jersey: 1) Ordained clergy typically get a W-2 with Box 1 and 16 (federal and state) wages only. 2) Federal, State income taxes may be withheld. 3) FICA should be handled as if they are self…
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Head’s Up on New Pennsylvania Charity Reporting Requirements
Executive Summary: Smaller Pennsylvania charities face revised state requirements for their submitted financial statements that may require additional advance planning. May 16, 2018 is the IRS filing deadline for filing 2017 information with the federal government for most nonprofit organizations. Some organizations haven’t had a need to focus on the details of recent legal changes affecting…
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Sample deferred compensation plan
Following is an annotated copy of the model truck language for a deferred compensation plan under Rev. Proc. 92-64. TRUST UNDER ____ PLAN OPTIONAL (a) THIS AGREEMENT MADE THIS ___ DAY OF ___, BY AND BETWEEN ____ (COMPANY) AND ____ (TRUSTEE); OPTIONAL (b) WHEREAS, COMPANY HAS ADOPTED THE NONQUALIFIED DEFERRED COMPENSATION PLAN(S) AS LISTED IN…
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My 2017 in two short paragraphs
The two big personal stories for me in 2017: #1 – Stress Handled I became stressed by the lack of respect for fact, truth, science, logic, law and education expressed in our everyday lives. I became stressed by the observation that other people abandoned traditional core values of charity, sharing, open doors, open borders, nondiscrimination,…
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Small business action plan to profit from tax reform
We can now begin to make a reasonable forecast of the eventual form of U.S. tax law and, even with the list of uncertain issues, ask what it means to each of us. For me and my small business practice, this is how it plays out: Winners Tax and business advisers Rental real estate owners…
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Tax tip: Avoid Late Filing Penalties
I had a few cases lately where small business organizations filed late tax returns and were then surprised by the size of the IRS late filing penalty. The penalty applies to regular for-profit, nonprofit and charitable organizations. The penalty is assessed even if the organization had no net income. The late filing penalty is applied…