The New England Not-For-Profit Accounting Advisor

The window of opportunity to take advantage of the Paycheck Protection Program (PPP) has closed, but considerations for the program, particularly around its most appealing benefit, remain.

Topics: tax, NFP, COVID19, COVID-19, CARES Act, Coronavirus Aid, Relief, and Economic Security Act, Paycheck Protection Program, PPP, PPP Loan, SBA, Small Business Administration, PPP Loan Forgiveness

Regulatory reform rarely happens in sweeping changes. Most of the time regulatory updates are incremental, which makes monitoring the little notices from Congress or the IRS important for organizations of all sizes. Taken together, the little things can have a significant impact on your organization’s operations.

Topics: tax, not-for-profit, IRS, IRS Updates, Congress, Regulatory Reform

Elections have a tendency to permeate everything, from television coverage to social media and even conversations in the workplace. For not-for-profits, keeping politics out of the work environment is essential.

501(c)(3) organizations are, by the definition of their tax-exemption, absolutely prohibited from directly or indirectly participating in, or intervening in, any political campaign on behalf of (or in opposition to) any candidate for elective public office. As such, they should be carefully monitoring their activities and those of their employees for anything that could be deemed politicking. If organizations cross the line with engaging in politics, there could be serious penalties or loss of tax-exempt status.

Topics: lobbying, advocacy, tax, election year, not-for-profit, IRS

The passage of the Protecting Americans from Tax Hikes Act of 2015 (PATH) brought with it opportunities for long-term tax planning that benefit tax-exempt organizations. The PATH Act makes permanent several popular tax provisions, including measures related to:

• Qualified conservation contributions,
• Food donations,
• Distributions from IRA accounts,
• Payments from controlled entities to their not-for-profit parent organizations, and
• S corporation charitable contributions

These provisions offer incentives for taxpayers to donate to charitable causes through deductions and other favorable changes to their tax liability.

Topics: tax, Non-profits, Not-for-Profits, NFP, Tax Extenders

Proposed changes were reported in the Federal Register on September 17, 2015, that relate to the substantiation of charitable donations. The rules, if approved, would create an alternative to the current requirement that an organization provide a contemporaneous written acknowledge (CWA) to the donor that contains certain information related to the donation. Organizations could instead provide an information return that includes the CWA information to both the donor and to the IRS.

Topics: tax, not-for-profit, IRS, Charitable Contribution Returns

The tax environment can change year to year or even month to month. New risks emerge as others become less of a threat to your not-for-profit organization. To stay in compliance with reporting requirements and reduce the potential for tax liabilities, your organization needs to keep a pulse on the new developments. Over the past nine months, regulatory changes, court cases and fraudulent activity emerged that may have an immediate effect on your organization. As a result, your organization should review these items carefully to determine if changes need to be made to your operations.

Topics: tax, not-for-profit