Internal fraud drains approximately $4 trillion annually from global businesses, according to recent estimates, and not-for-profit organizations are not exempt.
In the News
Friday, May 24, 2019
Games of chance like bingo and raffles are often synonymous with tax-exempt organizations. However, the income from such "gaming" activities operated by charities is not automatically tax-free. The IRS has provided more insight into the key rules in this area in its Publication 3079, Tax-Exempt Organizations and Gaming.
Thursday, May 9, 2019
It doesn't happen often, but sometimes not-for-profit organizations merge or are incorporated into one another. For example, your not-for-profit may be contemplating an acquisition of a smaller organization or perhaps you may be merged into a larger organization. In either event, this represents a significant change for managers both personally and professionally.
Thursday, April 25, 2019
Does your organization have "A Donor Bill of Rights?" This set of standards was created by the American Association of Fund-Raising Counsel (AAFRC), along with other philanthropic associations.* Many not-for-profit groups endorse these standards and state in their literature that they will adhere to them.
Thursday, April 11, 2019
Accurate, relevant and timely financial information is key to making good decisions for not-for-profit executives and board members. But do all of your board members really understand the numbers they receive and what they mean to your organization?
Friday, March 29, 2019
In order to qualify as a tax-exempt entity, a not-for-profit organization must comply with certain federal income tax laws. To prove compliance, you must maintain records. There is no required record keeping system. Your organization can choose any system that suits its activities and clearly shows your income and expenses.
Thursday, March 14, 2019
Most tax-exempt organizations must file Form 990 with the IRS. This form, titled Return of Organization Exempt from Income Tax, has significant implications for not-for-profit organizations. The compensation of officers, directors, trustees, key employees and others in tax-exempt organizations has always been scrutinized by the IRS. That is why compensation reporting is so important on Form 990.
Thursday, February 28, 2019
Organizations that are created to provide goods or services exclusively (or primarily) to Section 501(c)(3) organizations (or governmental entities) may think that this purpose is sufficient to also qualify them under tax law. However, providing commercial type services exclusively to exempt organizations is not by itself an exempt purpose. Much more is required for qualification under the rules of Internal Revenue Code Section 501(c)(3) than just having a mission to assist charitable organizations.
Thursday, February 14, 2019
Many not-for-profit organizations are concerned about the provisions of the Tax Cuts and Jobs Act (TCJA) that are affecting charitable giving. But the law also contains some important requirements involving unrelated business income tax (UBIT). If you engage in "unrelated business" — and even if you don't — you could find that your UBIT liability increases under the law.