Reviewing Tax Planning Strategies
With marginal federal tax rates of up to 37% in 2020, income taxes can have a significant effect on your financial situation. Continue reading for three strategies that may help reduce your income tax bill involving capital gains, postponing income and shifting the burden to another individual. Reduce or eliminate taxes. The objective is to receive income…
How to Manage Your High-Deductible Health Insurance Plan
High-deductible health plans can leave you with painfully expensive out-of-pocket costs. But that’s not always the case. With the right handling, these plans bring advantages that you might not expect. If you’re willing to do some smart planning and research, financial remedies are available. Here’s your prescription for savings. If you currently have a high-deductible…
To Compensate or Not to Compensate Nonprofit Board Members
Many nonprofit directors serve on boards for altruistic reasons. But it can be a huge commitment and the issue of compensation often comes up. Compensating nonprofit board members is rare. One survey suggested that just 2% of organizations pay their directors. Another study found that 96% of nonprofit boards are voluntary. Survey results and anecdotal…
Cash Management Increases Your Organization’s Chance of Success
If you want your organization to grow and remain competitive, a solid financial plan and a well-conceived strategy can mean the difference between boom and bust. The obvious place to start is with a cash-flow analysis. Review your company’s cash flow statements to understand the cycle of inflows and outflows that stem from accounts receivables,…
Write Clear, Up-to-Date Instructions for Policies and Procedures
Well-documented written policies and procedures are a critical element of maintaining your organization’s ability to continue winning government contracts. Several contract clauses require procedural documents for internal control systems related to such activities as making estimates and purchases. In addition, contractors must have policies, procedures, operating instructions and other control information available to help ensure…
Steps for Preventing Employee Fraud in Your Organization
If your organization becomes a victim of internal fraud, it won’t just hurt the bottom line — the incident also could do devastating damage to your reputation. By implementing some simple controls, though, your organization can help protect itself from these risks. Segregate Duties One of the most important preventive measures is the segregation of…
When a Nonprofit Organization Can and Can’t Lobby
There’s a common misconception that nonprofit organizations are strictly banned from lobbying for a political, environmental or some other social issue. Organizations aren’t banned from such activities, but there are potential pitfalls to avoid and nonprofit must operate within certain boundaries. A single misstep could result in severe consequences — including the loss of a…
Find a Corporate Partner for Your Nonprofit Organization
Practically every nonprofit you encounter is stretched thin and could use more workers to help raise funds and conduct other activities furthering its mission. But you can’t always hire more workers in this budget-conscious environment — not with donations trending down during the first half of 2019. Of course, volunteers can pitch in and you…
Red Flags for IRS Tax Auditors
No one wants to see an Internal Revenue Service (IRS) audit letter in the mail — or in the worst case, an auditor show up at his or her door. The IRS can’t audit every American’s tax return, so it relies on guidelines to select the ones most deserving of its attention. Here are six…
FAQs About Self Employment Tax
What Is SE Tax? SE tax is the way the US Treasury Department collects Social Security and Medicare taxes on non-wage income from business-related activities. For 2019, the SE tax rate is 15.3% on the first $132,900 of net SE income. The rate has two components: 12.4% for the Social Security tax, and 2.9% for…