Are You Holding a Raffle?

This ticket to revenue carries compliance concerns Raffles are tried-and-true fundraising vehicles. They can be attractive to your constituents, easy to put together and profitable. But organizations need to put on their “compliance hats” when holding this activity. Each state has its own set of laws regulating raffles. And all organizations must comply with federal…

Program Service or Supporting Activity? Get Your Expense Allocation Right

The push for more transparency from nonprofits has placed a greater emphasis on how an organization’s expenses break down — in other words, how it uses its resources. In 2016, the Financial Accounting Standards Board (FASB) released a new rule that reflects this priority. While the rule has been in effect for almost two years,…

IRS Issues Guidance for Excise Tax on Executive Compensation

The passage of the Tax Cuts and Jobs Act (TCJA) in late 2017 brought several unwelcome developments for nonprofits, including a new excise tax on certain executive compensation. To answer the many questions about the tax, the IRS has issued interim guidance that is largely unfavorable for organizations with highly paid executives or so-called “excess…

Employee or Independent Contractor? Consider These Factors.

The rise of ride-sharing firms like Uber and Lyft has led to headline-making questions about whether their drivers should be treated as employees or independent contractors. But for-profit companies aren’t the only ones that struggle with the issue. Nonprofits also can harbor uncertainties about whether workers are employees for whom you must withhold and pay…

Government Shutdown Means 990 Filing Delays

IMPORTANT: This currently impacts only those with 12/31 and 01/31 fiscal year ends. Government shutdowns are never helpful, more so when it occurs at the end of the year because of how it impacts the IRS and those whose fiscal year end is December 31st. As of right now, many types of individual and business…