Not For Profit Archives - Wiss & Company, LLP

Audit Threshold Increased for NJ Nonprofits

Written on January 20, 2022. Posted in Not For Profit.

By Eitan Balloul, Tax Manager, Not-for-Profit Many Exempt Organizations incur significant expenses associated with the requirement of providing audited financial statements on an annual basis. That expense could be diverted and used to further the charitable mission of the organization. The burden of that expense may be relieved by increasing the threshold at which organizations must file audited financial statements and excluding certain non-monetary in-kind contributions...

Updated Reporting Requirements for NY Tax-Exempt Organizations

Written on January 13, 2022. Posted in Not For Profit, State & Local Tax Services, Tax, Tax Alerts.

By Eitan Balloul, Tax Manager, Not-for-Profit In November of 2021, Governor Kathy Hochul of New York signed bill A1141A/S4817A to repeal NY Executive § Law 172-b. This law required certain exempt organizations who were registered with the New York State Attorney General (Department of Law) to submit an additional filing with the New York Department of State. Executive § Law 172-b became effective on January 1, 2021, and to many Exempt Organizations, it meant the burden...

Private Foundation or Donor-Advised Fund: The Ultimate Dilemma

Written on July 8, 2021. Posted in Not For Profit.

By Eitan Balloul, Tax Manager, Not-for-Profit Private foundations and Donor-Advised Funds are both vehicles to engage in philanthropic activities. Understanding the differences between the two is critical in determining which is more appropriate for your unique circumstances. Whether you prefer the greater control afforded by a private foundation or confidentiality and fewer restrictions of a DAF, each has its proper use. A Private Foundation is an exempt organization,...

Exempt Organizations and Sales Tax

Written on June 9, 2021. Posted in Not For Profit, Tax, Tax Alerts.

By Eitan Balloul, CPA, Tax Manager – Exempt Organizations & Fred Komarow, Tax Manager- SALT Many Tax-Exempt organizations are required to pay or to collect sales tax on certain transactions. Sales tax is governed and applied at the state and local level, which means that each state has its own rules and compliance requirements that will apply to an organization operating within a particular jurisdiction. Collecting and reporting sales tax is a requirement when selling tangible...

New Reporting Requirements for NY Tax-Exempt Organizations

Written on April 27, 2021. Posted in Not For Profit, Tax, Tax Alerts.

By Eitan Balloul, Tax Manager, Not-for-Profit Effective January 1, 2021, many Exempt organizations that file Form NY CHAR500 with the Attorney General must file the same information with the New York Department of State (“DOS”). There are 3 different potential reports for filing with the Department of State: 1. Annual Financial Disclosure Reports – Under Executive Law Section 172-b (1), (2) & (9) Charitable organizations that receive more than $250,000 in gross...

Nonprofit Updated Guidance on Reporting for ‘Gifts In Kind’

Written on September 28, 2020. Posted in Not For Profit.

By Diana Miller On September 17, 2020, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2020-07, Presentation and Disclosures by Not-for-Profit Entities for Contributed Nonfinancial Assets. Nonprofits have been challenged to measure the value of the multitude of contributions they receive (which is not always easy) and are often scrutinized by watchdog agencies, donors, or other regulators. The reason for this update is to improve transparency...

Main Street Lending Program modified to provide greater access to Nonprofits

Written on July 17, 2020. Posted in Not For Profit.

By Diana Miller On Friday, July 17th, the Federal Reserve Board modified the Main Street Lending Program, providing additional access to nonprofit organizations such as social service organizations, hospitals, and educational institutions. Nonprofit organizations are vital to the communities they serve and these changes are welcomed news to the nonprofit sector. Although not yet operational, 2 new loan options were released today to help nonprofit organizations due to the COVID pandemic....

Nonprofit News Special Update: Parking Tax Repealed and Single Rate Excise Tax for Private Foundations

Written on January 2, 2020. Posted in Not For Profit.

by Linda Curro The government funding legislation passed by Congress in December 2019 includes the repeal of the Internal Revenue Code § 512(a)(7), commonly referred to as the “Parking Tax.” The legislation was signed by the President on December 20th, 2019. The original provision, enacted as part of the 2017 Tax Cuts and Jobs Acts, required tax-exempt organizations to include in unrelated business income the amounts they pay or incur on qualified transportation fringe benefits. ...

Update – “Parking Tax” Alert! Interim Guidance Released

Written on December 13, 2018. Posted in Not For Profit.

By: Linda Curro and Diana Miller On December 10th, the IRS issued Notice 2018-99 (“Notice”) addressing guidance with respect to the tax treatment of qualified transportation fringe (“QTF”) benefits; specifically how employers should determine the amount of any nondeductible parking expense for employer provided parking. The Notice has provided guidance as to the disallowed parking expenses associated with the 2017 Tax Cuts and Jobs Act which currently disallows certain employer...

Tax Bill Impact on Transportation Benefits

Written on October 18, 2018. Posted in Not For Profit.

Its intentions are good, but the 2017 Tax Cuts and Jobs Act (TCJA) can have a negative effect on non-profit organizations in at least a couple ways. We’ll take a look at how one of the new provisions of the TCJA complicates the provision of what might be a much-needed benefit for some of your employees. Disallowed Benefits The IRS explains the tax code change, known as section 512(a)(7), under the heading “Increase in unrelated business taxable income by disallowed fringe.” This...

Net Asset Presentation on Not-for-Profit Entity Financial Statements

Written on June 12, 2018. Posted in Not For Profit.

By Ugochi Oguh, CPA Updated 7/29/2019 Prior to the adoption of ASU 2016-14, Presentation of Financial Statements of Not-for-Profit Entities, not-for-profit entities (NFPs) were required to segregate net asset disclosures between temporarily restricted, permanently restricted and unrestricted. To reduce confusion and enhance transparency, ASU 2016-14 reduces the number of classes of net assets from the above three to two – net assets without donor restrictions and net assets with...

The Importance of Setting A Budget for Your NonProfit Organization

Written on April 17, 2018. Posted in Not For Profit.

By Diana Miller, CPA The Importance of Annual Budgets for Nonprofit Organizations Sometimes the importance of writing and maintaining realistic annual budgets is not always understood -but it’s imperative for a number of reasons. For one thing, the document might find more interested readers than you suspect. Who Cares? Let’s start with your co-workers. Staffers need to know when funds will be available, or whether belt-tightening might soon begin (or continue). Your budget will...

Do You Have an Accounting Policies & Procedures Manual for Your Nonprofit?

Written on February 13, 2018. Posted in Not For Profit.

By Diana Miller Updated 7/30/2019. Written documentation of your organization’s policies and procedures regarding accounting practices always makes sense, regardless of your line of business. But it’s particularly critical when yours is a not-for-profit organization. While the production of such a document can be highly detailed and time-consuming, it’s worth it. And it’s a job you’ll likely only do once — or perhaps just tweak periodically as laws or conditions change. Let’s...

FASB Issues Update for Nonprofit Organizations

Written on October 10, 2017. Posted in Not For Profit.

by Diana Miller, Partner, Not-for-Profit Group In an effort to improve financial reporting for nonprofits, the Financial Accounting Standards Board (FASB) is implementing various changes. Among these changes are how expenses are being reported. Current Guidance When it comes to financial reporting, many nonprofit organizations are only required to provide expenses by their nature (i.e. salaries, travel, rent, etc.). However, voluntary health and welfare organizations are also required...

Nonprofit Accounting – Don’t Get Tripped Up by Form 990 Requirements

Written on September 6, 2017. Posted in Not For Profit.

By Linda Curro What’s in the price of a ticket? For nonprofit organizations that hold fundraising events and for the people who attend them, the answer is more complicated than it might appear. It’s important to get special event reporting correct because Form 990 has specific lines on the Revenue Statement to report fundraising events. The ticket price of every event carries two components within it – the donation amount and the entertainment benefit. Whether it’s a dinner, a cocktail...

Employment Tax Filings for Nonprofits: How to Ensure Compliance with IRS Rules

Written on July 25, 2017. Posted in Not For Profit.

By Linda Curro Nonprofit organizations frequently form organically, in response to a need in the community. The people who establish and run them are usually concerned citizens and activists, passionate about the cause, but often less knowledgeable about the operational and financial aspects of running a nonprofit organization. However, it is critical for nonprofit leaders to understand business and finance, particularly when it comes to employment tax compliance. Failure to properly...

Preparing for Change: New Rules to Impact NJ Renewal Registration for Nonprofits

Written on December 6, 2016. Posted in Not For Profit.

By Linda Curro Effective Jan. 1, 2017, New Jersey will require that all charity registrations and annual renewals be submitted digitally, using a new online filing system. In many ways, this is good news: A process that once required up to 75 pages of documents to be sent via snail mail will now go paperless, saving tons of waste. The new system also promises to streamline renewal reviews, enabling the state to more efficiently verify that the forms are completed and accurate. And...

New Guidance for Nonprofits: Be Aware of FASB’s Changes in Nonprofit Reporting

Written on August 25, 2016. Posted in Not For Profit.

By Diana Miller Following several years of examination and modification, the Financial Accounting Standards Board (FASB) released its long-awaited update this month on nonprofit financial reporting. The revision is expected to transform the way nonprofit organizations categorize net assets and construct financial statements. To prepare, nonprofit organizations should familiarize themselves with the following developments: Phase 1 (effective for fiscal years beginning after December...

How to Get the Most Out of Your Nonprofit Board Experience

Written on May 10, 2016. Posted in Not For Profit.

By Diana Miller Being asked to join the board of a nonprofit, whether it’s with a prestigious organization or one that’s relatively unknown, is an honor. Joining gives you the opportunity to do good for the arts, the underprivileged, the advancement of medicine or another worthy cause. And let’s be honest: It looks good on your resume, and the boardroom can be a great place to network. Saying yes to a board appointment is a no-brainer, right? While board membership is a great opportunity,...

Are you Ready if the Not-for-Profit Financial Statement Standards Change?

Written on July 28, 2015. Posted in Not For Profit.

By Diana Miller Changes are finally coming in the content and presentation of financial statements for not-for-profit entities for the first time in almost 20 years. Although nothing has yet been finalized, these fairly significant proposed changes could affect classification requirements, liquidity, financial performance and cash flow, according to the Financial Accounting Standards Board (FASB), the regulatory body that oversees these standards. The package of proposed Accounting...