What is good not-for-profit governance? How can organizations spot red flags of bad governance and avoid fraud? PKF Texas Directors, Nicole Riley, CPA, CFE, and Emily Smikal, CPA, shared their insight in our Zoom webinar on May 12, 2021, “Governance Gone Bad: Lessons Learned to Help Your Not-for-Profit.”
Continue Reading Recap: “Governance Gone Bad” Not-for-Profit Webinar
Jen: This is The PKF Texas – Entrepreneur’s Playbook®. I’m Jen Lemanski, and I’m back once again with Emily Smikal, a tax director and one of the faces of our PKF Texas not-for-profit team. Emily, welcome back to the Playbook.
Emily: Thanks for having me again.
Jen: So, I know for profit organizations can be audited by the IRS. I’m assuming not-for-profit organizations can also be audited for the IRS. Are there any steps that they can take to maybe avoid an audit?
Emily: Yes, not-for-profit entities can be audited, and so, it’s important to just understand how the IRS selects which organizations they’re going to audit so you can be somewhat prepared for that. So, first of all, you can’t fully know; they will randomly select organizations to audit, but there are some common triggers to just be aware of.
Jen: What are those triggers?
Continue Reading How Your NFP Can Avoid Pitfalls of an IRS Audit
“Accountability” may seem like one of those popular management concepts you know would be nice to implement if your not-for-profit had the time and budget.
But not only is accountability essential to your not-for-profit’s health and efficacy — affecting everything from donations to grants, hiring to volunteering, board fiduciary duty to employee morale — it’s also easy to adopt.
Continue Reading Make Time for Accountability for Your Not-for-Profit
There are many ways for a not-for-profit organization to lose its tax-exempt status — including participating in lobbying and campaign activities, receiving excessive unrelated business income and allowing board members to financially benefit from their positions. But the most common reason not-for-profits lose their status is failure to file an annual Form 990 or 990-N for three consecutive years.
If your organization has landed on the IRS’s revocation list for this reason, don’t panic. The process for reinstatement is relatively simple.
Continue Reading Need to Regain Tax-Exempt Status for Your Not-for-Profit?
Is your not-for-profit thinking about merging or otherwise restructuring?
Recently, the IRS made the process easier for some organizations.
Continue Reading Restructuring Your Not-for-Profit May Reduce Filing Burden
Many not-for-profit organizations use fundraising methods which cross boundaries of different states. If your not-for-profit is one of them, it may need registration in multiple jurisdictions.
But keep in mind that registration requirements vary — sometimes dramatically — from state to state. So be sure to determine your obligations before you invest time and money in registering.
Continue Reading Does Your Not-for-Profit Need Registration in Different States?
To protect the organization, demonstrate openness and support the greater good, your not-for-profit needs to embrace accountability. Doing so will also help you fulfill your fiduciary responsibilities to donors, constituents and the public.
Fairness and Clarity
Accountability starts by complying with all applicable laws and rules. As you carry out your organization’s initiatives, do so
Whether you’re planning to raise funds for your not-for-profit with a simple bingo game or raffle, or with a more elaborate casino night, you need to understand and follow the federal rules that govern these kinds of activities. Gaming activities can open the door to unexpected taxes and trigger requirements for specific IRS filings.
Filings
Jen: This is the PKF Texas Entrepreneur’s Playbook. I’m Jen Lemanski, this week’s guest host, and I’m here with Annjeanette Yglesias, one of our Tax Managers on our not-for-profit team. Annjeanette, welcome to the Playbook.
Annjeanette: Thanks, Jenn; it’s nice to be here.
Jen: So, as a tax advisor, you often work with non-profits