Crowdfunding — Capital for the 21st Century
One of the earliest examples of crowdfunding occurred in 1884 when funds ran short for building the Statue of Liberty’s pedestal. The publisher Joseph Pulitzer used his newspaper to appeal to Americans to donate the money needed to complete the pedestal’s construction. Over $100,000 in six months was raised from more than 125,000 people.1 But…
Got Bitcoin? Virtual Currency Complicates Tax Reporting
Bitcoin has been around for nearly a decade. But the tax rules related to “virtual currency” are still evolving. In fact, some Bitcoin investors may be in for a surprise when they file their 2017 returns. Tax matters will become even more complicated for 2018 returns because relevant provisions of the new tax law (the Tax…
Yes, You Do Need Investment Policies
So you think investment policies are only for not-for-profits with millions to invest? Not true. If your organization holds funds in reserve — for example, to cover emergencies or meet long-term goals — it’s prudent to have investment policies. Such policies will help ensure that you manage reserve funds responsibly according to their purpose and…
Setting the Salaries and Benefits of Your Executives
Rules known as “intermediate sanctions” allow the IRS to assess penalties against not-for-profit executives who receive excess compensation — and the board members who have approved it. Do you and your board know what’s considered excess compensation and what’s viewed as a conflict of interest during the compensation-setting process? Avoiding Excess Benefits Internal Revenue Code…
Deducting Pass-Through Business Losses
Many business ventures generate tax losses, especially in the first few years of operation or under adverse conditions. When can losses be deducted — and how much can you deduct in any given year? This article explains new limitations on the ability of individual taxpayers to deduct losses from pass-through business entities, including sole proprietorships, limited…
Increase the Odds of Getting a Loan
There are a couple of old sayings that relate to getting a loan. The first one is that bankers only want to lend money when you don’t need it. As frustrating as that is, it’s understandable, since bankers naturally want to minimize their risks. DO DON’T Be honest regardless of whether the information is positive or…
Succession Planning Requires Smart Strategies
Succession planning is important in any business, but it’s sometimes overlooked in family-owned operations. This is a big mistake. There are numerous former family-run companies that no longer exist due to poor or no succession plan. A family meeting in a neutral setting away from interruptions can help focus discussion, perhaps with the assistance of a professional…
The Outlook for Internships is Looking Up
In early January, the U.S. Department of Labor (DOL) published a fact sheet that lays out how the agency is aligning its policy on intern employment status with new rulings by several U.S. appellate courts. Previously, it would’ve been much harder to bring interns on board without having to pay them minimum wage and overtime….
Estimating, Accounting and Billing Uncompensated Overtime
Do you reflect all the hours your salaried employees worked when you submit U.S. Government contract estimates and billings? Tips Establish a consistent practice for accounting for hours worked by salaried individuals that exceed 40 hours a week. Ensure that estimating and billing practices are consistent with accounting practices. Record and bill all qualifying hours worked…
Ignoring Small Business Subcontract Limits Could Cost You
Is your operation classified as a small business? Have you received, or are you pursuing U.S. government prime contracts set aside or reserved for small business? If so, the clause in the Federal Acquisition Regulation (FAR) 52.219-14 titled “Limitations on Subcontracting” will be included in your contract. This clause specifies the percentage of work that…