Your Provisional Billing Rates
Do you have approved provisional billing rates for your interim billing and financing on your US government contracts? The contract clause in the Federal Acquisition Regulation (FAR) 52.216-7, Allowable Cost and Payment, is included in your cost reimbursable contracts. Paragraph (e) of this clause provides that: Until final annual indirect cost rates are established for…
Attracting Donor-Advised Funds
The popularity of donor-advised funds (DAFs) has surged in recent years, and DAFs increasingly are considered vital to the success of not-for-profit organizations. If you haven’t already, you should learn about how DAFs work so that you can position your nonprofit to benefit from these charitable-giving vehicles. How DAFs are Managed Generally, DAF accounts are…
What States are Saying About Gender Pay Discrimination in Hiring
According to the American Bar Association (ABA) Gender-based wage discrimination remains a pernicious problem in the workplace despite enactment over 50 years ago of the Equal Pay Act (EPA), which made it illegal for employers to pay unequal wages to men and women in the same workplace who perform substantially equal work. Common explanations for…
Want to Boost Smaller Donations? Go Online
The Tax Cuts and Jobs Act (TCJA) has had a dampening effect on charitable contributions, especially from low-to-moderate income donors. Under the TCJA, it’s more advantageous for many taxpayers to take the standard deduction than itemizing deductions as they might have in the past. Claiming the standard deduction means they receive no tax benefit for…
Working Capital: A Potential Valuation Sleeper
Working capital is sometimes overlooked in determining the value of a business. But it can have a material effect on value, so it’s important to remember. A business’s working capital equals the difference between its current assets and current liabilities. When the value of a business is determined under either the income or the market…
Inheriting Money? Considerations for Handling It
After receiving an inheritance, you need to determine how to incorporate those assets, whether stocks, bonds, real estate or some other asset, into your finances. Consider these points during the process: Determine what you will receive and when. Inheritances typically don’t come in the form of one check. You’re likely to receive the inheritance in…
Year-End Strategies to Reduce Adjusted Gross Income
Reducing your current-year adjusted gross income (AGI) is usually a tax-smart idea. Here are ten ways to reduce your AGI (and modified AGI) over the short and long run. Closeup on AGI AGI equals all taxable income items minus selected deductions for such items as deductible IRA and retirement plan contributions and alimony payments required…
Chapter 11 Bankruptcy Gives Companies Breathing Room
In an uncertain economy, many companies seek a fresh start under Chapter 11 bankruptcy proceedings if they think they could be profitable by getting relief from their debts. Generally, filing Chapter 11 is done voluntarily by a company to protect itself from creditors. It’s different from Chapter 7, which involves liquidating or selling off the…
Disaster Recovery: Ask ‘What If?’
Disasters never happen at a good time. But the timing is irrelevant. What counts is that your nonprofit can recover quickly with minimal long-term effects. And that means having a disaster recovery program in place so that your nonprofit is well-positioned to respond to — and rebound from — a wide range of calamities. The…
Is Your Nonprofit Organization in Survival Mode?
Nonprofits have at least one thing in common with for-profits: Only the strong survive. The nonprofit sector is extremely competitive and even a relatively small shift of fortunes can threaten an organization’s future. When events such as the death of a major donor or the loss of grants, organizations turn to their leaders to minimize…