IRS Form 990 includes specific information that helps donors and watchdogs assess and monitor nonprofit organizations. In a single document, it provides a snapshot of the financial health, governance, and operations of a nonprofit. (more…)
Nonprofit Insights
NextValuing and Substantiating Non-Cash Gifts - What Your Nonprofit Needs to Know
It’s not uncommon for nonprofit organizations to receive donations of tangible property from supporters in addition to cash contributions. Special rules apply when valuing such property and providing donors with the right kinds of documentation to substantiate deductions claimed for these donations.
Here are some common questions nonprofits have about valuing and substantiating non-cash gifts. (more…)
Nonprofit Executive Compensation - Don’t Run Afoul of IRS Regulations
Executive compensation at nonprofits is a hot-button issue right now as the IRS has begun ramping up oversight and enforcement. This is partly in response to some high-profile instances where executives working at nonprofit organizations received excessive salaries in relation to the size of the organization or the region of the country. (more…)
Three Steps to Preventing Excess Executive Compensation
The National Council of Nonprofits advises nonprofit organizations to take the following steps to help ensure that executive compensation isn’t excessive: (more…)
The Excess Nonprofit Compensation Tax
Section 4960 of the Tax Cuts and Jobs Act added an excise tax on excess compensation paid to certain executives of nonprofit organizations. The tax is imposed at the corporate tax rate of 21 percent on remuneration paid to a covered employee that exceeds $1 million, as well as excess parachute payments to covered executives. (more…)