Recent News & Blog / Nonprofit
Nonprofits: Consider these 2 issues before searching for new staffers
Despite many predictions to the contrary, U.S. employers have continued to add workers to their payrolls and the unemployment rate has remained low. Is your nonprofit among the employers that need new staffers? To make the right decision, conduct a human resources assessment. Our CPA's and business tax advisors can help your nonprofit by reviewing your finances and suggesting ways to free up cash. Contact us today for all more tax tips and financial advice.
Why your nonprofit shouldn’t operate like a for-profit business
Even nonprofits that generally play it safe can get tripped up by the commerciality doctrine. It was created to address concerns about nonprofits competing at an unfair tax advantage with for-profits. The doctrine generally says that when some otherwise exempt activities are substantially the same as those of commercial entities, a nonprofit can risk its exempt status. Risky activities include set ting prices to maximize profits, accumulating unreasonable reserves and advertising services to the public. With these exemptions and other technicalities, it can be tricky to remain compliant. Contact the CPA's and business tax advisors at SEK to help navigate you through nonprofit tax, tax tips and other financial advice.
When do 501(c)(6) organizations risk their exempt status?
Not-for-profit trade associations are organized to promote the common interests of their members. But to maintain their 501(c)(6) tax-exempt status, they must observe certain rules. Your association needs to offer services that benefit your entire group or profession as a whole, not individual members. Even when services for individuals are allowed (because they’re limited in number and scope), they can trigger unrelated business income tax. On the other hand, activities such as attempting to influence legislation relating to common business interests of members and testing and certifying products are generally acceptable. The CPAs and business tax advisors at SEK can help you navigate this process.
Nonprofits: Best practices for effective board meeting minutes
If you think the recorded minutes of your nonprofit’s board meetings are just a formality, think again. Meeting minutes can become critical documents if, for example, your organization is audited by the IRS or your directors are sued due to a board decision.
How to get the financing your nonprofit needs
Relatively high interest rates and tight lending standards are making it difficult for even for-profit businesses to apply and qualify for bank loans.
Help donors help your nonprofit with a planned gift
Most established not-for-profits are already equipped to solicit and accept planned gifts. But if your nonprofit is new to planned giving and doesn’t yet understand the long-term advantages of deferred gifts, it’s a good time to get up to speed.
Why your nonprofit’s board needs to be diverse
Ideally, a not-for-profit’s board of directors should mirror that of its community and clientele. Does yours? Identifying that your board needs more diversity is the easy part, though. Figuring out what to do about it can be more difficult.
Nonprofits: Want to boost income? Consider a for-profit subsidiary
Just because you run a not-for-profit organization doesn’t mean you can function on low or no income. Although your nonprofit’s tax-exempt status prohibits certain money-making activities, you may be able to create a for-profit subsidiary that isn’t hampered by such restrictions.
Don’t let IRS compliance issues drag down your nonprofit
In recent years, the IRS has increased its scrutiny of tax-exempt organizations. Most not-for-profits that fail to file Form 990 for three consecutive years will have their exempt status revoked automatically.
Joining forces with another nonprofit
A merger may seem like something that happens in the corporate world, where companies often combine to expand sales territory, gain competitive advantages and boost profits.