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…)
Valuing 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…)
Cryptocurrency Contributions in the Nonprofit World
By Emilie Thell, CPA, Manager, Assurance & Advisory
Following the onset of the COVID-19 pandemic, contributions to nonprofits have continued to reach record levels year-over-year. Considering the increasing popularity of crypto, it’s not surprising that nonprofits are seeing an increase in crypto contributions as well.
Fidelity Charitable reports they accepted more than $330 million in contributed crypto for philanthropic giving in 2021, up from $28 million in 2020, and crypto accounted for 66% of their contributions during the year. The Giving Block reports accepting almost $70 million in contributed crypto in 2021 compared to just $4 million in 2020. (more…)
How to Create a Code of Ethics
The news is full of stories involving ethics—recently one about would-be auditors cheating on, of all things, a national ethics exam. While no one wants to be in the spotlight for bad behavior, unethical behavior can be especially damaging to the reputation of a nonprofit organization.
To deter such conduct, many nonprofit organizations create codes of ethics to formally guide employees, volunteers, and board members in their decisions. Good codes of ethics include guidance on these and other behaviors: (more…)
SMART Is Now SMARTIE
As nonprofit organizations recover from the pandemic, one prominent issue that’s getting renewed focus is diversity, equity, and inclusion (DEI). Fostering and modeling these three values not only promote positive workplace experiences and opportunities, they also further the productive relationships and goodwill that advance nonprofit missions.
Incorporating DEI into everyday practices takes deliberate effort and planning. Working DEI into overall organizational strategy is a way to ensure that DEI issues are addressed in all decisions—and goal setting is a great place to start. (more…)
Nonprofit Staffing: Challenge or Crisis?
According to the U.S. Chamber of Commerce, more than 47 million workers quit their jobs in 2021, many seeking increased pay along with improved work-life balance and job flexibility. This spring, employers added 372,000 jobs, and the unemployment rate dropped to 3.6 percent—a near-record low in many states. It seems every business and nonprofit organization is hiring, and lots of workers are eager for new and better jobs. (more…)