Taxes, Finances, and Fundraising

Accounting and Fiduciary Guidelines for Nonprofits (NP9106-2)
Nonprofits have a legal duty to meticulously account for their finances. Certain accounting controls, outlined in this memo, can help expedite the process of obtaining tax-exempt status and aid a nonprofit in the proper stewardship of its funds. (8 pages)

Annual Audits: Vital Risk Management (NP9109-1)
Donors these days expect organizations to prove their financial integrity. Your annual audit is a great tool for doing this, but only if it's conducted reliably with established performance criteria. Guidelines in this memo help you get the most out of your audit. (7 pages)

Bonds & Securities: Legal Guidance for Nonprofits (NP9109-2)
Playing loose with securities law or simply being uninformed about requirements for nonprofits issuing notes or other securities is inviting serious trouble. This memo discusses the three general areas of securities regulation affecting nonprofits and the potential liabilities associated with each one. (10 pages)

Charitable Gifts of Property (NP9109-6)
Gifts of property trigger special tax obligations and certain risk management issues for tax-exempt organizations. Gifts of real estate, for example, may raise environmental questions or safety hazards. This memo addresses reporting requirements and prevention strategies to lessen the associated risks with various types of property gifts, from real estate to works of art. (9 pages)

Charitable Gifts: Receiving & Receipting (NP9505-1)
Now more than ever, the tax laws force careful documentation of charitable gifts; otherwise donors risk forfeiting valuable tax deductions. This memo explains all the rules and offers tips for charities. Includes sample substantiation acknowledgments any charity can use. (12 pages)

College & University Audits: Don't Let the IRS Take You to School (NP9710-1)
The IRS's Coordinated Examination Program has focused extensively on educational institutions. Here are highlights from past audits so colleges and universities can be better prepared if the IRS comes calling. (7 pages)

Donor-Designated Gifts: Pitfalls & Provisos (NP9302-1)
This memo discusses the problems raised by designated contributions, describes the operation of donor-advised funds, and provides a sample procedure for the application and approval of grants to specific individuals and projects. (15 pages)

Expense Reimbursement for Volunteers and Employees (NP9103-3)
Understanding whether certain reimbursements are taxable to employees or volunteers is critical because it may create reporting requirements for the nonprofit employer and/or questions of private inurement for the individual. This memo addresses these issues for both employees and volunteers. (10 pages)

Gifts to Employees:  Taxable Income? (NP9204-1)
The generosity of a gift an employer makes to an employee is undercut if the IRS taxes the gift as additional income to the employee. This memo discusses the difference between income and gifts and outlines methods of giving that avoid handing the employee an unexpected tax bill. (6 pages)"

Guidelines for Charitable Gift Annuities (NP9403-2)
Annuities offer unique fund raising opportunities, but they also impose financial and legal obligations on charities. A recent class-action antitrust case is just one example. This memo discusses basic rules and summarizes state regulations. (8 pages)

Intermediate Sanctions Law (NP9608-1)
Organizations that engage in 'excess benefit transactions' are subject to intermediate sanctions penalties. Organization executives may also be personally liable. These rules are especially stringent, with penalties as high as 200%. Coordinates with 'Essential Don'ts of Private Inurement', NP9109-4. (11 pages)

Pooled Income Funds for Nonprofits (NP9301-3)
With pooled income funds, donors may give and receive at the same time. This memo addresses fund benefits and operating requirements in a simple Q & A format. Includes sample application for exemption of funds. (8 pages)

Preparing the Nonprofit for an IRS Visit (NP9102-3)
Being unprepared for an audit usually signals a weakness in an organization's internal controls. This memo helps improve internal controls by making them more effective and responsible-which also makes an IRS audit, if it ever happens, much less stressful. (7 pages)

Private Inurement:  Essential Do's & Don'ts (NP9109-4)
The inurement rules punish organizations and insiders who exploit their special positions for personal gain. Here are the 10 absolute "don'ts" for avoiding those penalties. (7 pages) Coordinates with 'Avoiding the Snares of Intermediate Sanctions', NP9608-1.

A UBIT Primer for Nonprofits (NP9110-1)
In recent years, the IRS has collected record amounts of unrelated business income taxes from charities. Learn what triggers these tax liabilities and how to manage or eliminate the risk of UBIT in your organization. Includes a discussion of the eight main exemptions from UBIT. (13 pages)

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