Will Universal Charitable Deduction Get Another Bite at the Apple?

A bipartisan group of U.S. senators has introduced legislation to expand and extend the non-itemized deduction for charitable giving. Dubbed the Charitable Act, the bill would increase the previous $300 deduction permitted in 2020 and 2021 (or $600 for married couples filing jointly in 2021). The bill would allow taxpayers who don’t itemize their deductions…

Nonprofit Salaries Jumped in 2022

In the shadow of a tight labor market and the so-called Great Resignation, nonprofit organizations reported overall average salary increases of almost 6% for all staff in 2022, with projections for increases of more than 5% for 2023. That’s just one of the tidbits in The NonProfit Times’ nearly 600-page “2023 Nonprofit Organizations Salary and…

Is a Merger Right for Your Nonprofit?

Deciding whether to merge with another nonprofit isn’t a straightforward decision. Although some nonprofits struggled through the COVID-19 years, others prospered. Now, with high inflation rates and a possible recession, many nonprofits are again left with questions about their futures. A merger can help organizations share expenses and weather economic storms. But there are also…

Get to Know IRS Form W-9 Before Hiring Freelancers

Many employers, including nonprofits, are turning to independent contractors and freelancers as a way to deal with the continuing tight labor market. If your organization is among them, you need to take steps to ensure you collect the necessary paperwork — including IRS Form W-9, “Request for Taxpayer Identification Number and Certification.” In a nutshell…

Steering Clear of Landmines: 7 Areas of IRS Form 990 Audit Scrutiny

The IRS can initiate an audit of your nonprofit organization for any number of reasons. But perhaps the most common is a red flag sent up by your annual filing of Form 990, “Return of Organization Exempt From Income Tax.” Read on to learn the potential trouble areas and how you can reduce your audit…

Is Your Nonprofit Ready for the Next Disaster?

It’s easy for disaster planning to fall by the wayside when your nonprofit is focused on pursuing its mission. But taking the time to prepare now can help you avert mission-threatening consequences later. From hurricanes, wildfires, active shooters and cyberattacks — to events as seemingly minor as a burst pipe — your operations are vulnerable….

How to Stay on the Right Side of the IRS

Obtaining a determination letter from the IRS is no guarantee that a nonprofit organization’s tax-exempt status is secure for the long run. Your nonprofit must meet additional requirements to maintain its exempt status. Required filings and recommended recordkeeping Although your organization is exempt from income taxes, it’s probably required to file an annual IRS Form…

Don’t Let Reimbursements Trip Up Your Nonprofit

Why it’s important to establish a formal plan Whether it’s for employees, board members or other volunteers, your nonprofit organization likely will need to provide reimbursements for expenses at some point. While some nonprofits handle such transactions on an ad hoc basis, you’re better off establishing a formal reimbursement plan. Here’s what you need to…

Nonprofit CEO Compensation Climbs While Gender Pay Gap Persists

Candid’s 2022 Nonprofit Compensation Report — the most comprehensive study on nonprofit compensation — draws exclusively from data reported on IRS Forms 990 and 990-EZ. The latest report, the 22nd edition, reviews key employee compensation from close to 88,000 tax-exempt organizations for fiscal year 2020. The study found that, though median compensation for nonprofit CEOs…

Envisioning the Future: How to Assemble a Succession Plan

Succession planning is an important activity for every nonprofit organization. It’s not a matter of if, but when you’ll need a plan. Prior planning can help determine whether the transition will be seamless and successful or risk your organization’s future. You can’t draft a plan overnight, and the sooner you develop one, the better prepared…