Article Archives: 2016

Posted by: Karen Dunn

By Karen Dunn, JD, LLM

The Protecting Americans from Tax Hikes Act of 2015 (PATH), signed into law December 18th, contains some very favorable provisions affecting charities. Some of these provisions provide permanent extensions and some are new administrative procedures. This article focuses on the permanent extensions affecting charities.  However, stay tuned, as next month we will cover some of the new administrative provisions.

Tax-free IRA Charitable Distributions (up to $100,000 per year)

The biggest win for charities in PATH is the provision that made permanent the tax-free IRA distribution to charities.  The provision allows taxpayers to exclude up to $100,000 per year from their taxable income when a charitable contribution is made from a traditional or Roth IRA. 

 » Read more

As organizations serving people who are elderly, disabled or vulnerable in other ways, teaching them to protect themselves from fraud is an important part of the mission. These Individuals are at greater risk of falling prey to criminals attempting to defraud them by posing as the IRS. Even persons working hard to get their lives back after suffering a loss of employment, homelessness, or recovery from addiction, could have serious setbacks if they fall victim to one of these scams.

As a mother of an adult son with Autism, I found the IRS Tax Tip 2016-19 issued on February 12, 2016 timely and actionable.

 » Read more

Posted by: Cheryl R. Olson

By Cheryl Olson, CPA, CGMA

The budgeting process can often seem like an exercise that takes a lot of staff time without much impact. If you find that to be true for you, it’s time to change your process.

The budget has the potential to establish benchmarks, assess financial health, and increase accountability and oversight. I like to say the budget is the financial interpretation of your strategic plan, so that’s the first place to start in the budgeting process. What is your plan? What are you trying to accomplish?

A comprehensive budgeting process contains the following components:

Put the Plan in Writing

The entire process is in writing and shared with all staff.

 » Read more

Posted by: Matt Medlin

By Matt Medlin, CPA, CFE, CFF

April 21, 2020 update: To provide accounting relief and clarity during the COVID-19 crisis, the FASB published an exposure draft with proposals to delay the effective dates for Leases (Topic 842). Find more information here.

The FASB has issued its much anticipated new rules on accounting for leases.

This will cause virtually all leases and rental agreements lasting more than a year to be shown as liabilities on the balance sheet, with an offsetting asset representing the right to use the asset.

So every office lease,

 » Read more

Posted by: Sarah Huang

By Sarah Huang, CPA

Last September, the IRS issued a proposed regulation indicating Treasury would implement a new form for charities to report donations to the IRS. This form would include personal donor information, including their Social Security number and address, so the IRS could match the form with the donor’s income tax return. After receiving much opposition to the potential form, the IRS withdrew the proposed regulation on January 7. See our November 2015 article, IRS Issues New Donor Acknowledgment Proposed Regulations – Benefit or Burden? for more discussion on the proposed regulation.

Many charities and donors see this as a huge win.

 » Read more

Posted by: Kelly Rancourt

By Kelly Rancourt, CPA

This past year, not-for-profits and other non-federal organizations have been implementing the new changes related to the OMB Uniform Guidance (2.CFR.200) as they receive funding under the new regulations.

However, the guidance over 2.CFR.200 Subpart F – Audit Requirements will be effective for audit years beginning after December 26, 2014. As such, the first audits subject to the new auditing requirements will be for organizations with a year end of December 31, 2015 and later. These requirements replace the audit requirements under OMB Circular A-133 and will impact the way auditors plan and report their results under single audits.

 » Read more

Posted by: Karen Dunn

By Karen Dunn, JD, LLM

The IRS will be moving forward. Simota Lough, the Tax Exempt and Government Entities (TE/GE) commissioner, announced plans to build the IRS of the future with the Moving Forward Together – The Road Ahead initiative.

Each year, the IRS issues its priority work plan that outlines what the IRS accomplished in the past year as well as what its focus will be for the upcoming year for exempt organizations (EO). For the most part, the 2016 work plan continues efforts begun in 2015, to optimize resources and address significant non-compliance. These efforts will involve focus on five areas – continuous improvement,

 » Read more

Media Contact

Melissa Takade
Director of Marketing
Clark Nuber
Phone: 425-454-4919
Contact Melissa

Articles Archives

  • 2021
  • 2020
  • 2019
  • 2018
  • 2017
  • 2016
  • 2015
  • 2014
  • 2013