Public Support Test Basics
The Internal Revenue Code’s public support test provisions use mathematical income tests measured over an aggregate 5-year computation period to determine the tax status of public charities and private foundations. These provisions are particularly important for public charities which are required to have at least one-third of their revenue come from the public, government sources,…
Public Support Tests: Why You Might Prefer Public Charity to Private Foundation?
While the Internal Revenue Code Section 501(c) lists 29 different types of nonprofit organizations, most tax-exempt organizations are those described in Section 501(c)(3) and have a charitable, religious, educational, or scientific purpose. Every 501(c)(3) tax-exempt organization must be further classified as either a public charity or a private foundation. Some types of charities, such as…
Public Support Tests: How a Public Charity is Defined Under Sec. 509(a)(2)?
The IRS has four categories under Sec. 509 that allow an organization to be a public charity, but the two most common are 509(a)(1) and 509(a)(2). This article focuses on (a)(2) public charities, whose public support test calculations present a few more complexities than that of an (a)(1) public charity. The test to classify an…
Public Support Tests: Does Your Public Charity Pass the Section 509(a)(1) Test?
To be a public charity, an organization must meet one of the Internal Revenue Code (Code) Section 509(a) tests. This article focuses on the first listed test, Section 509(a)(1), and the ramifications for a charitable organization described in this section. However, to understand 509(a)(1), it is helpful to understand the alternative 509(a)(2) test. Please note…
New Tax Provisions in the Infrastructure Investment and Jobs Act
On Monday, President Biden signed HR 3684, the Infrastructure Investment and Jobs Act, into law. The comprehensive $1.2 trillion infrastructure package authorizes funds for federal-aid highways, highway safety programs, and transit programs, and for other purposes. Included in the new law are a few tax provisions of note to taxpayers. Termination of the Employee Retention…
2021 Tax Strategies for Individuals and Businesses
By Jennifer Galstad-Lee, CPA, JD, Tax Manager November is a great time to review your taxable individual and business income with the goal of maximizing your tax strategies for the current year. Below we provide some helpful checklists and schedules to guide you through some key tax considerations. Individuals Summarized below are several tax moves…
Webinar Series: Indirect Rate Toolkit for Nonprofits with Federal Grants – Part II
If your nonprofit receives funding from a federal grant (either directly or via a sub-award), you should take proactive steps to recover the maximum amount of indirect costs for your organization. Join GRF CPAs & Advisors for a four-part webinar series providing nonprofit organizations with everything they need to know about indirect rates under Uniform…
Secrets to Gaining Visibility into Nonprofit Financials
Flexible reporting functionality is a top criterion for nonprofits wanting to replace an underperforming financial management solution. The right financial management and reporting solution can be a critical driver of efficiency and visibility; the wrong solution can be a critical roadblock to strategic improvement. Read this ebook to learn how finance leaders can leverage the…
The 3 Keys to Accurate, Consistent, and Timely Financial Reporting for Professional Services Firms
This post was originally published on the Sage Intacct Blog Achieving a state of accurate, consistent, and timely financial reporting is not without its challenges. Certainly, for professional services firms with fluctuating demand, new market opportunities and Paycheck Protection Program (PPP) reporting needs, financial reporting is vastly more complex and often includes a “need it…
20 Questions to Ask Before You Buy Nonprofit Accounting Software
This post was originally published on the Sage Intacct Blog The decision to purchase a nonprofit accounting software solution requires careful consideration and research. After all, your organization’s financial management system will play a crucial role in your mission. The right accounting software will help you measure and analyze your financial performance, program outcomes, and…