A few years ago, IRS Revenue Procedure 2018-15 changed the rules regarding not-for-profit restructuring. If you’ve participated in a restructuring in the past, you’ll be relieved to know that in many cases it’s now easier. Even so, if recent challenges have led your organization to consider restructuring, it’s important to work with a professional advisor,… Continue reading Non-Profit Restructuring Has Become Easier, but Not Without Challenges
Category: Non-Profit
Established Non-Profits Must Continue to Build and Grow
If your non-profit was well-established before 2020, it probably weathered the pandemic and resulting economic stress better than younger organizations. But as you transition out of “survival” mode, challenges remain, including those faced by most non-profits, such as finding staffers and fundraising in an inhospitable environment. Then there are obstacles specific to mature not-for-profits. Here… Continue reading Established Non-Profits Must Continue to Build and Grow
Your Board Can’t Do Its Job Without Information From You
If your non-profit’s board members don’t have the information they need to make decisions, the repercussions can be severe. Board time can be wasted, voting may be delayed and your organization may be unable to act when it needs to. Worse, board members might make decisions based on faulty information, negatively affecting your mission. Here’s… Continue reading Your Board Can’t Do Its Job Without Information From You
When Non-Profits Should Return Donations
Return requests generally are rare, but occasionally donors may ask your not-for-profit to return their gifts. Are you required to comply? What if you’ve already spent the money? Such requests raise many difficult questions — and even the answers can be complicated. But establishing a return policy can help.
2021 Tax Planning: Charitable Giving
Consolidated Appropriations Act, 2021: Charitable Deduction for Non-Itemizers
For tax years beginning in 2021 only, the Consolidated Appropriations Act, 2021 allows an individual who does not itemize to claim a deduction of up to $300 ($600 in the case of a joint return) for charitable contributions made during the year.
Exclusion of Exempt Organization Employees from Retirement Plans
The IRS has finalized proposed regulations, with modifications, permitting the exclusion of employees of Code Sec. 501(c)(3) exempt organizations and governmental entities for purposes of testing whether a 401(k) or 401(m) retirement plan satisfies the minimum coverage requirements.
Do Non-Profits Ever Pay Taxes?
When you think about a non-profit, the first thing that often comes to mind is that it is tax-exempt. Most non-profits are not subject to federal, state, and local income tax.
Guidance on Tax-Free IRA Distributions to Charity
The Tax Code has several provisions encouraging individuals to make charitable contributions. One of these provisions allows individuals who are at least 70 1/2 by the end of the year to make a contribution of their taxable individual retirement account (IRA) distribution.
Charitable Contributions Involving Foreign Charities
The charitable deduction is allowed only for a contribution made to or for the use of an organization formed in the United States or one of its possessions. Therefore, a contribution made to a charitable organization created or organized under the laws of a foreign country is not deductible.