Big Valuation Case Shows Necessity of Certified Appraiser
In what is being called one of the biggest valuation decisions of 2014, the Tax Court had to determine which of four substantially different valuations of an estate interest in an investment holding company was the closest to the true value. The court also had to determine whether a 20-percent tax penalty imposed by the…
Form 990: What the Watchdogs are Watching
Several years have passed since the IRS revamped Form 990, Return of Organization Exempt From Income Tax, to its current lengthy core form, which also often needs numerous additional schedules. Nonprofit entities and tax preparers seem to be getting a handle on the new form, introduced for the 2008 tax year, despite annual IRS modifications…
Why CPAs Make Good Expert Witnesses
CPAs bring instant credibility to the witness stand. Unlike many expert witnesses, it is generally assumed that the CPA will testify honestly and offer the court a carefully-reasoned and supported opinion. The well-recognized credential speaks for itself, initially setting the bar a little higher for opposing counsel. But why? What is unique about the CPA…
Social Media Expert Gives Nonprofits Advice
Beth Kanter, co-author of The Networked Nonprofit and Measuring the Networked Nonprofit, was interviewed by nonprofit specialist Anne Sommers. Q. You are a rock star in the nonprofit social media world. You have more than 400,000 Twitter followers and follow 4,000 other Tweeters. How much time do you spend on Twitter daily and how do you choose who…
Combat Workers’ Comp Fraud in Your Workplace
The cost of workers’ compensation fraud is staggering, according to estimates by state insurance departments. Premium increases for workers’ comp continue to outpace inflation for many industries around the country. If this poses a large expense to your company, one way to help manage it is by thwarting fraud and educating your management team to…
Valuations Testimony can be Tricky
Anyone who has ever reviewed the summaries of valuations cases can readily see that testifying in a valuations case can be a very tricky business. Here is a list of 10 common pitfalls that valuation analysts sometimes experience when testifying. 1. Lack of preparation This is basic, but it’s true. The more you know your…
The Importance of Operating Reserves for Nonprofits
by Amy Boland, CPA, Nonprofit Audit Partner, Gelman, Rosenberg & Freedman CPAs What is an operating reserve, and why does every nonprofit need to address this issue? Nonprofit reserves are more important now than ever in today’s economy. It is a common misunderstanding that nonprofit organizations should not make a profit. In fact, the goal…
Is Your Law Firm Buried in Paper?
Despite the increasing digitization of business and society today, most law firms continue to be buried in paper. Lawyers work with enormous amounts of information and much of that remains on plain old paper. Indeed, as other areas of business have become more and more paperless, document management for most firms remains mired in printouts,…
Ways to Earn Revenue and Keep Tax-Exempt Status
Many nonprofits would like to create or expand revenue-producing activities in addition to their existing sources of primary financial support. These might include: Membership dues Fundraising events Government, foundation or corporate grants Program service revenue Investment income Rental income Gains from sale of assets or merchandise Tax-exempt revenue Depending on the type of nonprofit organization…
Check Tampering: One of the Most Common Frauds
The following scenarios are far too common in American small businesses and cost victim companies a median loss of $143,000. An employee regularly steals blank checks from his company and makes them out to himself or an accomplice. An employee steals outgoing checks to a vendor and deposits them in her own bank account. Check…