You likely already know that year end is the optimal time for not-for-profits to conduct gift-giving campaigns. Donors are more generous during the holidays, and many people wait until the last minute to make tax-deductible gifts before the Dec. 31 deadline. In fact, according to Double the Donation, 10% of all charitable giving occurs on the […]
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Do you have an idea for a new venture with social benefits or environmental applications? You can set up as a for-profit entity — such as a C corporation, S corporation or limited liability company — with charitable functions. Or, if your key objectives are more altruistic, you may want to consider an alternative: forming a
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The term “501(c)(3) organization” — which refers to the Internal Revenue Code section governing not-for-profit entities — often is used interchangeably with “public charity.” But not all 501(c)(3) organizations are public charities. Some are private foundations, and they’re subject to different tax rules. Individual and Family Charity A private foundation is a 501(c)(3) organization created by
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The tax-exempt status of a 501(c)(3) organization is its lifeblood. Without it, most not-for-profits couldn’t obtain the financial and other support they need to fulfill their mission. That’s why you need to protect your exempt status at all costs. 6 Violations Following is a brief overview of six common ways nonprofits’ tax-exempt status can be jeopardized
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Some taxpayers who have been playing “catch up” on their retirement savings after age 50 will soon be losing one of the tax breaks they have enjoyed. Starting January 1, 2024, any catch up 401(k) contribution made by a taxpayer earning $145,000 or more during the previous year must be made – after taxes –
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Your not-for-profit organization is probably assisted by volunteers who aren’t financially compensated. But your staff — including executives — are almost certainly paid a commensurate salary and benefits for their work. Compensation issues are always tricky, but they’re made more so by tax and legal requirements for nonprofits. Setting executive pay is particularly fraught because if
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By Martin E. Prendergast Gray, Gray & Gray, LLP While the recently enacted Inflation Reduction Act is making headlines for its energy and healthcare facets – along with a big ramp up in IRS muscle – there are several provisions that could benefit practitioners in the architectural and engineering fields. Here are some highlights of
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If your organization has met the IRS qualifications to be considered tax-exempt, the income you receive — such as donor contributions — is exempt from federal income tax. However, it’s still possible for not-for-profits to follow the rules and experience adverse tax consequences. Here are five potential tax traps that could catch you off guard. 1.
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Do you have a relatively new business with less than $1 million in annual gross revenues? You may be eligible for as much as $100,000 in tax credits. Under the American Recovery Rescue Plan, a company founded or incorporated after February 15, 2020 may be classified as a “Recovery Startup Business.” These recent startups (provided
Recent Startup? You Could Be Eligible for Up to $100,000 in Tax Credits Read More »
If your not-for-profit organization operates on a calendar-year tax basis, the deadline for filing your year-end Form 990 (Form 990 EZ for certain small organizations) is May 15. Besides filing on time, you must ensure the information provided on your form is accurate. Pay particular attention to the following eight issues that commonly trip up nonprofits:
Preparing Form 990: Pay Attention to These Eight Items Read More »