Must Joint Activities Be Treated as Partnerships?
For federal income tax purposes, an unincorporated joint venture or other contractual or co-ownership arrangement under which several participants conduct a business or investment activity and split the profits is generally treated as a partnership. This general rule applies even if the joint venture or arrangement is not recognized as a separate legal entity (apart…
What Can Employers Do with Forfeited Employee FSA Balances?
When unused flexible spending account (FSA) balances are forfeited back to employers under the “use-it-or-lose-it” rule, employers have several options for what they can do with the money. Here is what employers need to know after first covering some necessary background information. Flexible Spending Account Basics Under an employer-sponsored flexible spending account (FSA) plan, employees…
Activities with Related Entities: Are You Properly Reporting Them?
It’s no secret that the number of not-for-profit organizations is growing while the number of grant dollars is shrinking. Shifting from competing for grant funds to cooperating with other organizations can create substantial value for not-for-profits and the people they serve. Among the ways that organizations can work together are: Purchasing goods and services together; Sharing…
2017 Tax Reform and its Effect on Nonprofits
With a new administration about to take office, tax reform is a topic that has received a lot of attention. While what will ultimately pass and be signed into law is anyone’s guess at this point, there are a number of potential provisions that could have an impact on charitable giving and ultimately, on the…
Training and Education Cost Allowability
Efficient and effective execution of duties is dependent on a well-trained staff. However, there are some training and training-related costs that are not allowable. Know these rules to maximize recovery, avoid penalties and preclude findings of accounting system inadequacy. Tips Maintain documentation that relates to an employee’s attendance at a specific training course to the…
The Income Approach: How It Differs
When you buy a new car, what exactly are you purchasing? You are buying a tangible asset, a method of transportation and often a symbol of taste and stature. When someone buys a company or an interest in a company, what are they purchasing? Not necessarily always a tangible asset, but always a method to…
Tips Hotline: Can You Afford Not to Have One?
Tips from employees, customers and vendors are by far and away the most common way employee fraud is detected. Yet, in a recent study, only slightly more than half of all organizations that were victims of fraud had a tips hotline – and only 18 percent of small businesses had one. The Association of Certified Fraud…
What Young Donors Respond to Today
Young people under age 35 want to give to charity – by donating either their money or their time. But many nonprofit organizations are not approaching the huge Millennial generation correctly, according to The Millennial Impact Report, a study by Achieve of more than 2,600 respondents, most college graduates. Young people are not interested in…
How Advanced Valuation Practices Help Businesses and Investments
Business valuation can seem to be as simple as a multiple paid against your last year’s earnings. But the truth is, valuation is an ever-evolving field, and recent advances continue to affect how valuations are performed. The goals are still to determine “What is the right multiple?” and “What discounts or premiums apply?” Recent changes…
Are Microvolunteer Assignments More Productive?
Keeping volunteers happy, committed, and enthusiastic is a challenging task for most nonprofits. All too often, the same cadre of heavy lifters does most of the work. Those folks are liable to burn out, so it’s essential to lighten their load by attracting new energy, talent, and ideas to the organization. Societal trends and shifting…