Nonprofit Accounting Basics

Federal Tax Issues

501(c)(4) Organizations and the IRS: A Little Background on the Controversy

Originally Posted: July 10, 2013

The IRS Exempt Organizations group (EO) has admitted to at least some inappropriate targeting of politically-conservative Section 501(c)(4) organizations in the exemption application process.

Accounting for Uncertain Tax Positions: A Requirement for Nonprofit Financial Statements

Originally Posted: December 28, 2010

FIN 48, Accounting for Uncertain Tax Positions (now codified as ASC 740-10) was made a requirement for any entity with financial statements prepared in accordance with generally accepted acc

Charities and Political Activity— The Unwelcome Spotlight

Originally Posted: January 26, 2021

Political candidates can be good for your nonprofit.  They raise the profile of your events, increase public interest in your activities, and prove to be good friends once in office.  Why

Donated Goods and Services

Originally Posted: April 1, 2010

During this down economy, the donation of goods and services are getting more attention as many households turn to such gifts as an alternative means of providing support for various causes.

Expanded Work Opportunity Tax Credit Available for Hiring Qualified Veterans

Originally Posted: October 15, 2012

Recent changes to the Work Opportunity Tax Credit (WOTC) have made incentives for hiring eligible veterans available to qualified tax-exempt organizations.

Foreign Account Reporting— More IRS Guidance is Here!

Originally Posted: April 27, 2010

As announced in 2008 and 2009, Treasury and the IRS have greatly stepped up enforcement of the filing requirements for Form TD F 90-22.1, Report of Foreign Bank and Financial Accounts ("FBAR

IRS Code Sections Relating to Exempt Organizations

Originally Posted: June 7, 2009

The IRS maintains a listing of the code sections that apply to exempt organizations.

IRS Compensation Findings for 501(c)(3) and 501(c)(4) Organizations

Originally Posted: July 25, 2013

Once a scandal erupts, there’s very little chance any other initiative that has been undertaken by a group will receive much attention.

IRS Unrelated Business Income Findings from the Colleges and Universities Compliance Project

Originally Posted: September 9, 2013

As noted in an earlier article, the Internal Revenue Service (IRS) recently issued the Colleges and Universitie

Lobbying

Originally Posted: November 30, 2009

Below are five articles from the Alliance for Justice discussing lobbying rules for not-for-profit organizations.

Lobbying by Public Charities: The 501(h) Safe Harbor

Originally Posted: February 10, 2014

The issue of lobbying by 501(c)(3) public charitable organizations has long been a confusing area.

Meet the New Form 1099-NEC

Originally Posted: March 24, 2021

The PATH Act (Protecting Americans from Tax Hikes Act) required that payments for services in 2017 be reported on Form 1099-MISC by January 31 of the following year.  However, if a payor was o

Schedule A: The Key to Maintaining Public Charity Status

Originally Posted: June 30, 2014

Many public charities have to pass an annual public support test in order to maintain public charity status and avoid being classified as private foundations.

Taxability of Credit Card Cashback Rewards

Originally Posted: April 3, 2017

Most credit card companies offer some form of reward program to market their card and build customer loyalty.

The Tax Consequences of Fee-for-Service (Part 1 of 2): The Exempt Purpose Test

Originally Posted: August 26, 2020

The past decade has been marked by the increasing commercialization of the non-profit sector.

The Tax Consequences of Fee-for-Service (Part 2 of 2): The Unrelated Business Income Tax

Originally Posted: August 26, 2020

In the first part of this two-part series, we discussed the growing commercialization of the non-profit sector, and examined how and when heavy reliance on “fee-for-service” revenue may be inconsis

UBIT Can Take a Bite Out of Alternative Investments

Originally Posted: July 14, 2015

The uncertain economy and tempestuous financial markets of recent years have led some nonprofit organizations to turn to alternative investments.

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