On March 27, the Coronavirus Aid, Relief, and Economic Security (CARES) Act was signed into law. How is this massive $2 trillion recovery package poised to help your not-for-profit organization? It depends on your group’s size, financial condition and other factors. But most nonprofits affected by the coronavirus (COVID-19) outbreak are eligible for some relief under […]

A women sorting clothes to be donated

The deductibility of most charitable gifts hasn’t changed since passage of the Tax Cuts and Jobs Act, but some recordkeeping requirements have. Helping your donors who itemize deductions understand the rules and benefits of their gifts can strengthen your not-for-profit’s ties with them — and may help increase contributions. Allowable deductions Generally, donors can deduct […]

Puzzle pieces on a table and the last piece doesn’t fit

Not-for-profit board directors, trustees and key employees must not have a direct or indirect financial interest in a transaction or arrangement that might benefit them personally. This is why nonprofits are required to have a written conflict-of-interest policy. To stress the importance of this requirement, the IRS asks you to acknowledge the existence of a […]

Man on the phone at a computer reviewing document

Is your not-for-profit thinking about merging or restructuring? Recently, the IRS made the process easier for some organizations. Under previous IRS rules, nonprofits were required to file new exemption applications when they made certain changes to their structure. Each change was seen as creating a new legal entity that needed an exemption application. Under Revenue […]

A women presenting a clipboard of data charts

To fulfill their fiduciary duties, your not-for-profit’s board needs information. You don’t want to bog them down with superfluous reading material. But there are three general types of information you should share. The first is financial, including copies of your Form 990, audit results and quarterly financial reports with income and expense information. The second […]

A hand holds out a money bag

Certain activities can increase a not-for-profit’s risk of losing its tax-exempt status. These include ignoring the IRS’s private benefit and private inurement provisions. A private benefit is any payment made by a nonprofit that’s beyond reasonable compensation for the services provided or goods sold or for services or products that don’t further your tax-exempt purpose. […]

Many not-for-profits use fundraising methods that cross state boundaries. If yours is one of them, it may need to register in multiple jurisdictions. But keep in mind that registration requirements vary, sometimes dramatically, from state to state. For example, some states exempt certain nonprofits from registering and others require them to register but drop annual […]

Many not-for-profits increase their occupational theft risk by devoting too little of their budget to internal controls, placing excessive trust in staffers and volunteers and failing to punish fraud perpetrators appropriately. Board members who lack the financial knowledge to spot irregularities are another risk. Because your organization likely can’t afford any fraud losses, you need […]

If philanthropy is an important part of your estate planning legacy, consider taking steps to ensure that your donations are used to fulfill your intended charitable purposes. One way to help preserve your charitable legacy is to place restrictions on the use of your gifts. For example, you might limit the use of your funds […]