Exemption from federal income tax carries significant responsibilities and restrictions, especially regarding transactions with related parties, also known as “insiders.” Leaders must understand these rules to protect both their mission and their organization’s tax-exempt status. At the heart of the IRS’s oversight of insider transactions are prohibitions against private inurement and excess benefit transactions. These […]
In August 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2023-08, which provides guidance on the accounting and disclosure of crypto assets for organizations, including nonprofits. With the growing presence of cryptocurrencies and other digital assets in both investment portfolios and transactions, nonprofit leaders must familiarize themselves with these updated standards […]
We have all heard of healthy habits for successful people, but what are some of the most important habits for nonprofit accountants, advisors, staff, or volunteers supporting a nonprofit organization’s financial infrastructure? We’ve mapped out our favorites below: 1. Timely Communication Prompt follow-up is crucial in accounting. It’s more than just a courtesy; it’s a […]
California implemented a new law mandating all companies with five or more employees offer a retirement plan to all workers by June 30, 2022. Organizations that do not have a retirement plan in place can register with CalSavers, the state-sponsored individual retirement account (IRA). And you guessed it, nonprofit organizations are not exempt from this […]
