Is Your Focus on Revenues or Profits?
Most business owners and managers with sales responsibility know their sales numbers. They can tell you their revenues year-to-date for the quarter, for the month, sometimes even for the day. Unfortunately, many of those same people can’t tell you what their margins by product line are. They are focused on revenues more than profits, and…
Is Your Nonprofit Making Use of Legacy Funds?
Most nonprofits struggle with maintaining sufficient ongoing funds for operations. Donations and grants go up and down annually, often influenced by factors outside the organization’s control. Nonprofits of all sizes are realizing that they are leaving a source of funding on the table, one that maximizes the loyalty and goodwill they’ve so diligently created. That…
Five Overlooked Ways Forensic CPAs Can Help Attorneys
Attorneys who use forensic accountants are familiar with the analysis and testimony an expert can provide in matrimonial cases, commercial disputes, lost profits claims, criminal and civil cases, and many other types of litigation. Typically, financial experts are called on to calculate, analyze and prepare reports, as well as refute the opposing expert’s testimony. Experienced…
Many Wealthy Donors Engage in ‘Checkbook Philanthropy’
More than half of high net worth individuals plan to leave some of their fortunes to charity, according to a recent survey, and nine of 10 are involved in some kind of philanthropy. Millionaires typically give about 7 percent of their annual income to charity, and the majority will leave an average of 28 percent…
How Does The Economy Bias Valuations?
In a perfect world, a business valuation would be a totally objective assessment of a company’s worth. But many factors can influence the outcome, including parties involved and the purpose of the valuation. That type of bias might be readily identified and understood. What may not be so clear is the influence of the general…
Tax Reform Act of 2014 – How It Would Impact Nonprofits
The Tax Reform Act of 2014 was released on February 26, 2014 by Dave Camp, Chairman of the U.S. House of Representatives Ways and Means Committee. Given that 2014 is an election year, it is unlikely that Congress will vote on the proposal this year and may not for some time. However, if enacted as…
Five Steps to Setting Effective Company Goals
Goal setting is nothing new. You’ve likely been setting goals for yourself since you were a child: learn to ride a bike, graduate from high school, get a good job. Human beings are goal-oriented creatures. We like to know the outcome expected of us. Goals can be motivating or demotivating, however. They can be used…
How a Public Charity is Defined Under Sec. 509(a)(2)
The IRS has four categories under Sec. 509 that allow an organization to be a public charity, but the two most common are 509(a)(1) and 509(a)(2). The characteristics of an (a)(1) public charity were discussed in previous articles. This article focuses on (a)(2) public charities, whose public support test calculations present a few more complexities…
Study: Litigators Most In Demand as Hiring Increases
Salaries have not returned to pre-recession levels, according to a new Robert Half Legal survey on hiring, but many firms are willing to increase salaries to attract the right legal talent. Better benefits, flexible scheduling, telecommuting and subsidized training are also being thrown into the mix by many law offices to appeal to top prospects,…
Public Charity: Why You Might Prefer It to a Private Foundation
Internal Revenue Code Section 501(c) lists 29 different types of nonprofit organizations. But the vast majority of tax-exempt organizations are those described in Section 501(c)(3) and have a charitable, religious, educational or scientific purpose. Every 501(c)(3) tax-exempt organization must be further classified as either a public charity or a private foundation. Some types of charities,…