Protect your nonprofit from occupational fraud threats
September 17, 2019 – Not-for-profit organizations don’t lose as much to occupational fraud as for-profit businesses do. According to the Association of Certified Fraud Examiners’ (ACFE’s) 2018 Report to the Nations, nonprofits lost a median amount of $75,000 during the 21-month study period, compared with $164,000 for private for-profit companies. Yet few nonprofit budgets can afford a $75,000 shortfall or the bad publicity […]
Associations: Avoid certain activities to preserve tax-exempt status
July 22, 2019
Nonprofit trade associations, or 501(c)(6) organizations, exist to promote their members’ common interests and improve business conditions or “one or more lines of interest.” Whether the association is a local chamber of commerce, a real estate board or a large professional group, associations’ tax-exempt status is contingent on their sponsoring certain types of activities — and avoiding others. When they fail to do so, the IRS may […]
April 11, 2019 – If you think that, once your not-for-profit receives its official tax-exempt status from the IRS, you don’t have to revisit it again, think again. Whether your organization is a Section 501(c)(3), Sec. 501(c)(7) or other type, be careful. The activities you conduct, the ways you generate revenue and how you use that revenue could potentially threaten your exempt status. It’s worth reviewing the IRS’s exempt-status rules to make sure your […]
Along with all the changes affecting individuals and for-profit businesses, nonprofit organizations were handed their own corner of tax reform when the Tax Cuts and Jobs Act (TCJA) was passed in late 2017. While changes related to employer matters are no different for nonprofits, there are a few issues pertaining to unrelated business income to be aware of, including taxation of certain employee fringe benefits and separate taxation of net income […]
When It Comes to Revenue, Nonprofits need to Think Like Auditors
July 30, 2018 – Auditors examining a not-for-profit’s financial statements spend considerable time on the revenue figures. They look at the accounting methods used to record revenues and perform a detailed income analysis. You can use the same techniques to increase your understanding of your organization’s revenue profile.
In particular, consider:
Individual contributions. Compare the donation dollars raised to past years to pinpoint trends. For example, […]
Nonprofit organizations must be compliant with rules from many different agencies. Here is a look at some of the current Internal Revenue Service issues to be aware of.
501(c) (4), (5) and (6) Self-Declarers
Social welfare organizations; labor, agricultural and horticultural groups; and business leagues,such as a trade association – can declare themselves tax-exempt without seeking a determination from the IRS. The IRS will review organizations to ensure that they […]