Nonprofit Blog

The Internal Revenue Service (IRS) released proposed regulations that provide guidance for the nonqualified deferred compensation arrangements of tax-exempt organizations in June. The regulations, which have been anticipated by the industry since 2007, address the interplay between Internal Revenue Code Section 457 and Section 409A, which govern the nonqualified deferred compensation arrangements of all employers, including tax-exempt organizations. The newly proposed Section 457 regulations provide plan design opportunities specifically for tax-exempt employers, which could aid in the recruitment and retention of key executives.

The holiday season always seems to open people’s hearts (and wallets). Giving to a charity is not only generous and needed, but can bring significant tax deductions. Charitable giving is known as one of the most flexible tax planning tools because your choice of recipients is vast and you can give at any time of the year (although deductions are based on IRS deadlines). To take a charitable donation deduction, the gift must be made by Dec. 31, 2016. Don’t give and go. As a donor, make sure you are taking advantage of the available tax planning strategies.

Nonprofit organizations rely on their board members for a variety of reasons. Board members support the mission of their affiliated organization in many ways, but they also play two key - and somewhat different - roles: support and governance. Michela Perrone, PhD, President of MMP Associates believes when it comes to support and governance board members must wear two different hats.

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An update released by the Financial Accounting Standards Board (“FASB”) on August 18, 2016 is the first in a set of major changes which will substantially affect all nonprofit entities (“nonprofits”) and users of their financial statements.

1. Not all purchases are exempt from sales tax

To many nonprofit organizations the Form 990 is simply a requirement, a must do. However, this public form can serve as a tool to help your organization increase brand awareness throughout the community. There are many sections in the Form 990 that can help your marketing team and organization generate positive perceptions, which could ultimately lead to more donations.

At the May nonprofit workshop hosted by Smith & Howard, attendees enjoyed hearing the perspectives on online fundraising from three respected professionals: Mary Pat Crouch, Senior Vice President of Coxe Curry & Associates, Mark Sutton, CFO of United Way of Metro Atlanta and Justin Banta, Development Director of the Georgia Center for Nonprofits. 

At Smith & Howard our purpose is “to be valuable to our clients, our people and the community.” That certainly holds true for our nonprofit team, as we provide accounting services to many nonprofits around Georgia. The group also has a passion for serving the nonprofit community through board positions and community service events.  In June, instead of having a regular monthly business meeting, the team decided our priority would be to give back to the community through a service project. Our group’s community service leaders, Kimberly Bland and Andrea Shanahan, considered over a half dozen projects and were so moved by the mission of the Ronald McDonald House in Sandy Springs that we quickly made it our focus.

It’s common knowledge that with limited resources, recruiting for nonprofit roles can be especially challenging. But it’s important that nonprofit executives don’t overlook best practices for effective recruiting, as it’s people who are behind an organization’s mission, and are critical to its success. While the challenge is great, the cultural, productivity and financial costs of recruiting missteps provide ample motivation to get the process right. Consider that the cost of turnover averages 150 percent of the departing employee’s compensation. That expense can prove to be particularly troublesome for mission-based organizations like nonprofits. So, what can nonprofit leaders and managers do to prepare themselves for the task of recruiting?