The IRS recently indicated that it would approve of charitable giving programs where the donor still manages the donated assets, subject to certain conditions and restrictions. As you have made charitable contributions in the past, you may wish to investigate using a donor-managed account as part of your charitable giving activities.
Category: Non-Profit
Filing Requirement for Small Tax-Exempts
Most small tax-exempt organization with gross receipts of $50,000 or less, may be required to file Form 990-N, “Electronic Notice (e-Postcard) for Tax-Exempt Organizations not Required To File Form 990 or 990-EZ.” Small organizations were not required to file annual information with the IRS before the Pension Protection Act of 2006 enacted the filing requirement… Continue reading Filing Requirement for Small Tax-Exempts
Private Foundations May Be the Right Choice for Your Family
Private foundations are an undervalued tool for both income and estate planning. They are often bashed in the press for being cumbersome and expensive to operate but we disagree with this opinion.
Exempt Organization Status and Excess Benefit Transactions
The IRS has issued final regulations concerning the exempt status of organizations that are tax-exempt under Code Sec. 501(c)(3) but engage in excess benefit transactions. As an exempt organization, this development may affect you.
Excise Taxes on Private Foundations Lowered
As you know, private foundations are generally exempt from federal income taxes. However, in certain circumstances, excise taxes may be imposed on the specific income of a private foundation. In two recent pronouncements, the IRS has identified two types of income that will no longer be subject to excise taxes.
Form 990: Expanded Compensation Reporting
As a nonprofit organization, you are probably already aware of the heightened public scrutiny imposed upon such organizations due to reports of grossly excessive compensation received by nonprofit management officials. To address concerns, the IRS has revised and expanded the reporting of compensation and benefits in the Form 990, Return of Organization Exempt From Income… Continue reading Form 990: Expanded Compensation Reporting
Charitable Giving: Acknowledgement and Substantiation
The Tax Code encourages charitable giving by allowing an income tax deduction. However, certain requirements must be followed to in order to claim the deduction.
Organizational Policies for Non-Profits
Although the Tax Code does not require charities to have governance and management policies, the IRS will review an organization’s application for exemption and annual information returns (Form 990) to determine whether the organization has implemented certain policies.
Appraisal Requirements for Noncash Contributions
If you make or receive charitable contributions regularly, you may be aware that charitable contributions of property in excess of $5,000 require that you attach an appraisal to your tax return. In response to gross valuation misstatements, the IRS has recently issued guidance on the definition of a qualified appraisal and qualified appraiser.
Tax Breaks for Charitable Giving
You probably know that you can get an income tax deduction for a gift to a charity. But there is a lot more to charitable giving. For example, you can benefit a family member and a charity at the same time and still get a tax break.