Employees vs. Contractors in the Nonprofit World
One of the most significant costs for many nonprofits is people. Volunteers can do only so much, and to grow your organization and maintain consistent services, people need to be paid. Whether it’s an administrative position, a program manager, a driver or an instructor, that person trades commitment of time and skill for compensation. Hiring…
Tax Court Case Questions Dad’s Goodwill
Is the transfer of goodwill to the next generation a taxable gift? A recent case involving the possible transfer of goodwill from a father to his sons asked just that question. The IRS wanted more than $2.7 million in income tax, gift tax deficiency and penalties. The IRS’s willingness to litigate the Bross Trucking case…
Ever Wish You Could Take That Email Back?
It wouldn’t hurt any of us to hesitate a second and review our emails before hitting the “send” button. Some people have learned that the hard way. And, boy, have there been some whoppers. Can you imagine accidentally emailing: Confidential salary information – to the entire company A nasty comment about your supervisor – to…
Courts Settle Option-to-Buy Tax Question
A business exercising an option to buy property that it was already leasing may deduct a portion of the amount tendered in the transaction as a lease termination payment, the Court of Appeals for the Sixth Circuit ruled, affirming an earlier district court decision. The court rejected the IRS’s argument that the entire amount had…
Budget Preparation a Time for Problem Solving
Many nonprofit managers regard budgeting as a necessary evil that must be done to satisfy the board of directors and funders. In addition to the chore of gathering the financial data, there is often an uneasy feeling triggered by forecasting the unknown. What will happen if you don’t achieve the needed revenue figures? Instead, try…
Employees Follow Ethics of Management
Jane is the administrative assistant at a local company. She considers herself to be an honest person. She would never think of walking into a store and shoplifting. That would be wrong. Yet, twice this week, Jane walked into the company mailroom and applied postage to her personal bills without a second thought. How could…
Three Lemons for ‘Professional’ Slot Machine Player
Enrique Free-Pacheco played the one-armed bandit more than 700,000 times in Las Vegas casinos, winning millions of dollars in jackpots and losing millions more. Every time the Mexican visitor to Nevada won more than $1,200 in a payoff, the slot machine locked up and the IRS collected its 30 percent, the amount nonresident aliens must…
Millionaires Holding More Cash Than Before Recession
Many Americans haven’t recovered from being burned in the stock market plunge of the late 2000s. Their portfolios may have come back if they held tight through the storm, but the emotional scars are still there. That’s also true for the wealthiest of Americans, according to the 2014 US Trust Insights on Wealth and Worth…
How Fighting Ageism Can Help Your Business
Discriminating against potential or existing employees because of age is illegal. It’s also an obsolete practice that can hamper company performance. Like other forms of discrimination, ageism is based on stereotypes and assumptions, most of them negative – Older people don’t want to learn new technology. They are set in their ways. They want too…
Gift Size of Online Donations Increasing
The size of gifts and the average amount of gifts donated online continue to grow, though online giving still represents only a small percentage of overall giving. At least six organizations last year had an online donation in excess of $100,000, according to a Chronicle of Philanthropy study of the 400 largest nonprofits, including: National…