The 509(a)(3) Test – Rules for Being a Supporting Organization
Internal Revenue Code Section (Sec.) 509 describes the various tests for a Section 501(c)(3) organization to be classified as a public charity. The 509(a)(1) and (a)(2) tests were discussed in previous articles. Section 509(a)(3) describes an organization that is a public charity by being a “supporting organization” (SO). Supporting organizations are organized and operated exclusively for…
How to Keep Information Secure to Avoid Identity Theft
Nowadays, it seems everyone lives in fear of their identity being stolen – and most of us know someone who has been a victim. The Federal Trade Commission details the four primary areas that you should oversee to ensure your personal information is secure to avoid becoming a victim yourself. 1. Keep your personal information…
DRIPs: Know the Pros and Cons
Dividend reinvestment plans offer advantages to investors, but the disadvantages should be considered. Commonly called DRIPs, these plans allow shareholders to buy stock directly from a company or from the company’s transfer agent. The plans also reinvest part or all dividends paid, as chosen by the shareholder, into more stock for the investor. Most, but…
Switch to Chip Credit Cards Coming by October
In recent months, you may have noticed that new credit cards you receive now have a chip on them in addition to the ubiquitous magnetic stripe. When using your card, you may also have noticed a change in the card reader. Many of them now have a slot in which the card is inserted, rather…
Confidentiality Agreements in Mergers & Acquisitions Negotiations
Parties embarking on merger or acquisition negotiations necessarily must share confidential information so they can accurately evaluate the prospects for a deal. Prospective purchasers of a business usually are asked to sign confidentiality agreements before the seller will disclose information relevant to the possible merger or acquisition. Confidentiality agreements – also called confidential disclosure agreements…
Why Nonprofits are Reluctant to Report Fraud
Nonprofit organizations are not immune to theft by their employees or volunteers. In fact, sometimes they are more vulnerable because charitable organizations tend to place more faith in the individuals in their organizations, perhaps wrongly assuming that everyone is there for the good of the charity. Nonprofits don’t tend to have the extent of problems…
Why More Attorneys Are Telecommuting
More attorneys are working remotely than ever before, to the point that some firms no longer have a brick-and-mortar office. With the increased availability of mobile devices and cloud computing that allows them to work anywhere, anytime, many attorneys are finding they can work more efficiently by telecommuting. A recent study found that 39 percent…
Emotional Appeals Bring Success in Fundraising
Fundraising appeals tied to particular causes, time of year or specific needs are often used to great effect by fundraisers. Because they hone in on a specific, often time-limited effort, they present a very clear connection between the gift and the outcome. In general, appeals need to include the total amount needed, the purpose and…
How to Protect Yourself From Expense Account Fraud
One of the easiest ways dishonest employees steal from the company is by submitting inflated expense reports. The Association of Certified Fraud Examiners determined in its 2014 Report to the Nation on Occupational Fraud and Abuse that approximately 15 percent of all fraudulent disbursement schemes investigated involved expense reimbursement fraud. It took an average of…
Financially Wounded Millennial Generation Invests Conservatively
The Millennial generation – that generation of workers younger than 35 – may have suffered more than any other during the recent financial crisis. With college loans to be repaid and the unemployment rate skyrocketing, many new graduates moved back home with their parents and developed a dark outlook about their financial futures. It’s not…