To reap the tax-advantaged and protective benefits of conducting business through multiple entities, organizations must take care to respect the formalities of the arrangement. This includes remaining independent and dealing with each other at arm’s length, having separate board meetings, implementing conflict of interest policies, documenting transactions between the entities, and ensuring fair market value payment for any benefits received by affiliates.
As the economic hardships of the pandemic continue to mount, many are looking for ways to help employees weather the crisis. After 9/11, the Internal Revenue Code was amended to allow employers to make direct payments to employees for “qualified disaster relief” under Section 139. Likewise, employee assistance funds are also commonly used vehicles to provide disaster relief and/or emergency hardship financial support for people affiliated with a particular employer. Both vehicles serve not only to protect one of your business’s most important assets — your people — by getting them back to work, but they also serve to boost morale, build community, and reduce employee turnover in the long-run.
AdHoc said it best: “For everyone that is feeling outraged by the multiple lives that have been lost at the hands of the police, we’d encourage you to channel that anger into action.” For some, that action looks like self-education and awareness, or protesting, or speaking out amongst their friends and community. Another consideration may be giving to one of several organizations working diligently in the fight against systemic racism and violence.
On January 31, 2020, the IRS announced that it has released a new online version of Form 1023. The revised Form 1023, Application for Recognition of Exemption Under Section 501(c)(3) of the Internal Revenue Code is reformatted for electronic filing.
At the close of 2019, Congress passed legislation that has a significant impact on nonprofits. On December 20, 2019, the “Further Consolidated Appropriations Act, 2020,” also known as H.R. 1865, became law. This act includes two provisions that significantly impact nonprofits:
The simplification of the excise tax on net investment income; and
The retroactive repeal of the unrelated business income tax on qualified transportation fringe benefits.
There is no doubt that 2020 is going to be an exhilarating year for nonprofits. Fundraising is more competitive than […]
Your Privacy and Legal Notice Webpage cannot be a last-minute matter anymore but must be a prominent feature on your entire website and be composed of words that the average user can comprehend without the need for a lawyer.
Many non-profit’s use the 51% benchmark for a quorum as a concession that directors will not be able to attend all meetings, but having a majority of board members in attendance for official business ensures a representative cross-section of participation which will not simply reflect the will of a very small clique of directors. However, organizations that value strong hands-on participation by board members may set a higher quorum requirement to encourage meeting attendance and broader participation.
In non-profit finance and accounting, restricted contributions are those given by donors in which the donor intends the funds to be used for specific programs or purposes. As in all matters regarding donations, the stated intent of the donor rules when it comes to the purposes for which donation revenue can be allocated. If the donor allocates funds for program B, and states verbally or in writing that such funds cannot be used for administrative costs (back office, IT support, human resources, insurance, operations, etc.) to support such programming, than they cannot be used for that purpose. However, if no such explicit statement is made by the donor, non-profits can use a reasonable amount of the restricted funds received to pay for administrative costs allocable to the program designated by the donor.
Board members are passionate, responsive, driven, and engaged. A nonprofit board member usually has a strong interest in the work […]
Have you ever considered starting your own private family foundation? For those who have causes you are passionate about, creating a […]
The groundbreaking Facebook founder has once again broken with tradition and formed his philanthropy as an LLC. Clients have questioned the benefits of choosing to forgoe the traditional private foundation in favor of an LLC. We are here to break it down.
Nonprofits have a compelling negotiating tool that pairs employee debt relief with long-term employee commitment (at least to the sector) and doesn’t cost the nonprofit anything.
Whenever nonprofit directors, officers or staff members’ personal interests are impacted by their decision-making on behalf of the nonprofit, conflicts of interest can arise. All nonprofits encounter conflicts and all nonprofits need to understand effective conflict management.
We are used to hearing lots of folks – including yours truly – complain about the “nonprofit birth control” problem in this country. While it is true that too many nonprofits are formed for the wrong reasons – there are also many good reasons to form a new nonprofit. The trick is to learn to tell the difference.
The IRS recently issued Rev. Proc. 2013-12 which updates its Employee Plans Compliance Resolution System. As anticipated, the new EPCRS allows plan sponsors to retroactively correct the failure to adopt a written plan document for a 403(b) plan by December 31, 2009.
We applaud the ACC’s sensitivity to nonprofit and tax-exempt issues and we suspect these changes will lead to fewer filings with inappropriate tax provisions. However, the downside is that the free ACC forms are no longer appropriate for nonprofits who wish to qualify for tax-exempt status.
When Board members gather, what are ostensibly shared interests and goals may in fact consist of different or divergent underlying […]
Under this definition of an electronic signature, responding yes or no in response to a question regarding whether a measure is approved suffices as an electronic signature for purposes of a unanimous written consent. This change makes it much easier to obtain approval of resolutions particularly with regard to time sensitive matters.
Choosing the right carrier and policy may not be as straightforward as it seems. Unlike general liability insurance where there is standard policy language, each insurance company writes its own specialized D&O Insurance policy.