Tax and Accounting Desk

With the competition for donation dollars fierce right now, many not-for-profits are turning to influencers — from Hollywood celebrities to politicians to blog stars — to raise awareness of their organizations and causes.

girl holding her iPhone towards a painted pink notification icon with a heart and 1; image used for blog post about not-for-profits working with social media influencers

But before your not-for-profit solicits influencer support, there are a few things you should know.


Continue Reading Working with Social Media Influencers for Your NFP

Many organizations get stuck in procedural ruts because it’s easier in the short term to continue doing things the way they’ve always been done. But it generally pays to regularly review your not-for-profit’s accounting function for inefficiencies and oversight gaps.

a woman typing on a laptop with data and graphs on screen; image used for blog post about not-for-profits reviewing accounting function

You might plan to conduct a review once a year or perform an assessment whenever significant changes, such as staff turnover or the introduction of new software, warrants one.


Continue Reading Is it Time to Review Your Not-for-Profit’s Accounting?

Many people are more concerned about their 2020 tax bills right now than they are about their 2021 tax situation. That’s understandable because your 2020 individual tax return is due to be filed in less than three months (unless you file an extension).

two men sitting next to each other looking at documents with laptops; image used for blog post about 2021 tax situations

However, it’s a good idea to acquaint yourself with tax amounts that may have changed for 2021. Below are some Q&As about tax amounts for this year.

Be aware that not all tax figures are adjusted annually for inflation and even if they are, they may be unchanged or change only slightly due to low inflation. In addition, some amounts only change with new legislation.


Continue Reading Have Questions About Your 2021 Tax Situation?

Jen: This is the PKF Texas – Entrepreneur’s Playbook®. I’m Jen Lemanski, and I’m here today with Emily Smikal, a Director in our tax department and one of the faces of the PKF Texas not-for-profit team.  Emily, welcome to the Playbook.

Emily: Thanks, Jen. Thanks for having me.

Jen: So, I’ve heard you talk before about this thing called “unrelated business income tax.” How does that impact not-for-profits, and what should they know?

Emily: First, let’s call it UBI just to keep it more simple. UBIT, unrelated business income tax, is an income tax imposed on certain not-for-profit organizations that conduct certain activity that is not related to their tax-exempt purpose.

Jen: So, what would qualify for that?


Continue Reading How Unrelated Business Income Tax Impacts Not-for-Profits

The Consolidated Appropriations Act signed at the end of 2020 changed the eligibility and increased the amount of credit for the Employee Retention Tax Credit (ERTC). Do you have questions about what to consider in your approach to Paycheck Protection Program (PPP) forgiveness?

In our continued efforts to provide helpful information for clients and friends

Jen: This is The PKF Texas – Entrepreneur’s Playbook®. I’m Jen Lemanski, and I’m back again with Nicole Riley, a Director on our audit team and one of the faces of PKF Texas’ not-for-profit team. Nicole, welcome back to The Playbook.

Nicole: Thanks. Glad to be here.

Jen: So, audits. You know, it’s the beginning of the year, people are starting to get things pulled together for their audit process. What could a not-for-profit organization do to make that process smoother when it comes time?


Continue Reading Three Tips for a Smooth Audit

If your not-for-profit has lost financial support during the pandemic, you may be looking for ways to raise new revenue. But if your proposed solution is a side business, be careful. Even when business ventures are related to a not-for-profit’s exempt purpose, they can run afoul of the commerciality doctrine — and jeopardize an organization’s tax status.

woman holding hundred dollar bills fanned out; image used for blog post about commerciality doctrine for not-for-profits


Continue Reading Not-for-Profits: Be Careful of the Commerciality Doctrine

Although electric vehicles (or EVs) are a small percentage of the cars on the road today, they’re increasing in popularity all the time. And if you buy one, you may be eligible for a federal tax break.

electric charger inserted into a vehicle tank; image used for blog post about electric vehicles tax credit

The tax code provides a credit to purchasers of qualifying plug-in electric drive motor vehicles including passenger vehicles and light trucks. The credit is equal to $2,500 plus an additional amount, based on battery capacity, that can’t exceed $5,000. Therefore, the maximum credit allowed for a qualifying EV is $7,500.


Continue Reading What to Know About Tax Credit for Electric Vehicles

It’s been almost a year since many not-for-profit organizations sent staffers home — to work-from-home mode. For many not-for-profits and employees, remote work has been a positive experience.

man in blue dress shirt and glasses using computer; image used for blog post about work-from-home not-for-profits

And as the pandemic fades, you’ll probably need to decide whether employees should remain where they are, return to the office or work a hybrid schedule.


Continue Reading Considering Permanent Work-From-Home for Your Not-for-Profit?