The CPA Desk

A Thought Leader Production by PKFTexas

Tag Archives: Not-for-Profit

Maximize Donor Generosity This Holiday Season

People are naturally inclined to make charitable gifts around the holidays. With the end of the year fast approaching, your not-for-profit should prepare now to take advantage of donors’ generosity. Here are four tips for making the most of the season: Strike early. Plan events or solicitations for early December or sooner. By being one… Continue Reading

Is Your Not-for-Profit Board Following These Governance Practices?

Jen:  This is the PKF Texas Entrepreneur’s Playbook.  I’m Jen Lemanski, this week’s guest host, and I’m back again with Nicole Riley, one of our Audit Senior Managers on our not-for-profit team; welcome back to the Playbook Nicole. Nicole:  Thanks, glad to be here. Jen:  Now I’ve heard you talk about Governance procedures; what does… Continue Reading

Term Limits on Your Nonprofit Board. Yes or No?

Term limits for not-for-profit board members can be a double-edged sword. They can allow you to easily let go of unsuccessful board members, but they also can cause you to lose the best sooner than you’d like. Consider some of the issues involved before making a decision. Review the pros Term limits allow you to… Continue Reading

Nonprofits: Harness the power of the personal appeal

You’ve probably heard it before: People don’t give to causes — they give to those asking on behalf of a cause. That’s why a personal appeal continues to be such a powerful not-for-profit fundraising tool. In fact, requests from friends or family members typically drive most charitable donations. By appealing to their networks, board members… Continue Reading

When does your nonprofit owe UBIT on investment income?

In recent years, the IRS has increased its scrutiny of not-for-profits’ unrelated business income (UBI). Dividends, interest, rents, annuities and other investment income generally are excluded when calculating unrelated business income tax (UBIT). However, there are two exceptions where such income is taxable. 1. Debt-financed property When your nonprofit incurs debt to acquire an income-producing… Continue Reading

Nonprofits Should Avoid Excess Benefit Transactions…Here’s Why

Not-for-profits that ignore the IRS’s private benefit and private inurement provisions do so at their own peril. These rules prohibit an individual inside or outside a nonprofit from reaping an excess benefit from the organization’s transactions. Violation of such rules can have devastating consequences. Defining terms A private benefit is any payment or transfer of… Continue Reading

Insurance Options for Nonprofit Fundraising Events

Not-for-profit special events can be lucrative from a fundraising standpoint, but they also carry significant risks. Proper insurance coverage can help protect your organization. Special event, special planning Risks associated with special events run the gamut from accidents and personal injury to fraud and theft to cancellation due to inclement weather or nonappearance by a… Continue Reading

Three Things Your Nonprofit’s Board Needs to Know

Information is power. And regularly supplying information to your not-for-profit’s board of directors is the key to the board properly fulfilling its duties. This doesn’t mean you have to share every internal email or phone message. Board members should, however, receive and understand information that will help them work together and better serve your organization…. Continue Reading

A Guide for Not-for-Profits and Loan Borrowing

Debt is an integral part of many for-profit companies’ strategic plans, yet it has traditionally carried a stigma in the not-for-profit world. That view is changing, as more organizations borrow money for major capital purchases, new program funding and other reasons. But before your nonprofit borrows, it’s important to understand that it takes prudent financial… Continue Reading

Five Tips on Succession Planning for Not-for-Profits

Every not-for-profit organization needs comprehensive succession planning to ensure smooth leadership transitions. Here are five tips for making a written plan successful: Look within. It’s important to develop employees who can move up the ladder when an executive director or other senior manager leaves, but don’t rule out hiring an outsider. Promoting from within can… Continue Reading

Prevent Fraud in Your Not-for-Profit Sports League

Many not-for-profit youth sports leagues are at risk for fraud and don’t even know it. Cash transactions are common and leagues are typically managed by volunteers with little oversight, it’s easy for crooked individuals to take advantage of the situation. Unfortunately, sports league fraud is usually committed by well known and respected board members or officers…. Continue Reading

What Factors Motivate Your Not-for-Profit’s Donors?

What do charitable donors want? The classic answer is: Go ask each one individually. However, research provides some insight into donor motivation that can help your not-for-profit grow its financial support. Taxing matters The biennial U.S. Trust® Study of High Net Worth Philanthropy, conducted in partnership with the Indiana University Lilly Family School of Philanthropy,… Continue Reading

Helpful Tax Tips for Not-for-Profit Fundraisers

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… Continue Reading

Everything Not-for-Profits Need to Know About Unrelated Business Income Tax

Jen:  This is the PKF Texas Entrepreneur’s Playbook.  I’m Jen Lemanski, this week’s guest host, and I’m back again with Annjeanette Yglesias, one of our tax managers on our not for profit team.  Welcome back to the Playbook Annjeanette. Annjeanette:  Thanks, Jen, it’s nice to be here. Jen:  Well now I’ve heard you talk about… Continue Reading

Understand Your Not-for-Profit Board’s Fiduciary Duty

Interest in not-for-profits’ governance practices from lawmakers, watchdog groups, and the general public has been growing in recent years. If your board hasn’t recently reviewed its fiduciary duties, roles, and responsibilities, now is a good time. 3 primary responsibilities Nonprofit board members — whether compensated or not — have a fiduciary duty to the organization…. Continue Reading

Dos and Don’ts of Not-for-Profit Program Development

Is your not-for-profit association offering enough (or the right) programs to keep members active and engaged? Program development requires time, effort and money. So when you commit to developing a new one, you want to get the biggest bang for your buck. Here are some simple dos and don’ts: DO consult your members. Through focus… Continue Reading

Expand Your Not-for-Profit’s Reach with Social Listening

Many not-for-profits are adopting a marketing tactic called “social listening” that for-profit companies have used successfully in the past. Social listening costs relatively little and can give you valuable insight into issues that resonate with your supporters. This allows you to better tailor your communications. Identify and engage Social listening starts with monitoring social media… Continue Reading

Five Accounting Mistakes Not-for-Profits Should Avoid

To err is human, but your not-for-profit’s supporters, not to mention the IRS, may be less than forgiving if errors affect your financial books. Fortunately, if you attend to details, you can avoid these common accounting mistakes:  1. Failing to follow accounting procedures. Even the smallest nonprofit should set formal, documented and detailed procedures for… Continue Reading

Benefit Your Employees and Your Not-for-Profit by Cross-Training

What would happen if one of your not-for-profit’s key people suddenly quit or had to go on long-term disability? Would you be able to conduct business as usual? To prevent a critical function from possibly coming to a standstill, consider cross-training staff. Organization benefits Cross-training personnel means that you teach them how to do each… Continue Reading

Not-for-Profits: You Can Save Tax with an Accountable Plan

Your not-for-profit can’t generally reimburse employees for business expenses tax-free just because staffers submit expense records. However, you can if you have a properly executed accountable plan. Under such a plan, reimbursement payments will be free from federal income and employment taxes for recipient employees and not subject to withholding from their paychecks. Additionally, your… Continue Reading