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Helpful Tips
Here is a monthly update of web sites of important news stories, upcoming events or technical pronouncements that impact the not-for-profit sector.
We have also included links to other professionals who share our commitment to the not-for-profit sector.
Summary of 2004 Tax Actions that Effect Tax Exempt Organizations
Provided below is a link to a summary of some important tax related issues that effect exempt organizations including a reminder about general issues: operating restrictions, unrelated business income and revocation of tax exempt status and specific reference to revenue and letter rulings and other areas that highlight potential opportunities and pitfalls: special record keeping requirements, e-file availability to tax exempt organizations, IRS problems with credit counseling organizations, potential major problem with personal use of exempt organization owned vehicles and other areas. Summary of 2004 Tax Actions (pdf 13k)
Property Tax Exemptions
Many states and local governments are requiring voluntary or mandatory payments in lieu of taxes, services in lieu of taxes, revoking property tax exemptions, refusing to grant property tax exemptions, placing limits on the amount of property that can be exempt; and restricting the definition of what property qualifies for exemption. Consult with your accountant and legal advisors.
Charitable Solicitation Registration and Reporting
Currently, 40 states regulate charitable solicitations. Approximately 36 of those states will accept the Unified Registration Statement (URS).
Visit www.multistatefiling.org for an example.
Internet Solicitations
If a charity has a website that solicits funds, does the charity need to register in every state where the website is accessed? There is no clear answer. Proceed carefully and consult your legal and tax advisors.
Inconsistency and Duplication of Reporting to Funders
There is no consistency between government agencies in the financial reporting required of charitable organizations. Many nonprofits invest considerable resources to rework ledger information to satisfy the requirements of each funder. Many software packages if designed properly support grant reporting. Consult with your accountant about available options.
Court Cases that Impact Not-for-Profit Organizations
Ryan v Telemarketer Associates This case decided by the US Supreme Court concerns the extent to which the First Amendment limits the government's authority to curtail fraudulent solicitations of charitable contributions. The United States has a substantial interest in that issue. The United States prosecutes fraudulent charitable solicitation under its criminal antifraud statutes. See, e.g., 18 U.S.C. 1341 (mail fraud); 18 U.S.C. 1343 (wire fraud). Consult with your legal advisor regarding the implications of this land mark case.
Legislative Initiatives that Impact Nor-for-profits
New Jersey Cohen A.2684. Withdrawn by sponsor but would have extended provisions of Sarbanes Oxley to privately held companies.
NJSCPA engaged in discussions to increase the $100,00 audit threshold for annual reports filed with Charitable Registrations.
New York S.4834. Provisions of Sarbanes Oxley apply to private companies.
Federal Rules and Regulations that Directly Impact Not-for-Profit Organizations
OMB Circulars A-110, A-122 and A-133.
Visit www.whitehouse.gov/omb/circulars
Faith Based Initiatives
Under Executive Order 13199, the White House (“WHHOFBCI”) has the “responsibility in the executive branch to establish policies, priorities, and objectives for the Federal Government's comprehensive effort to enlist, equip, enable, empower, and expand the work of faith-based and other community organizations to the extent permitted by law.” Contemporaneously Executive Order (EO 13198) established Centers for Faith-Based and Community Initiatives in Health and Human Services, and other departments.
See www.hhs.gov/fbci/funding.html for an overview of the grant process.
Capacity Building, Development
Ruotolo Associates Inc. a national full-service fundraising and public relations firm for the non-profit world. Clients include schools, libraries, museums and arts/cultural/historic organizations; social service and cause-related organizations; hospitals and medical/health organizations; diocese, churches and religious organizations.
www.ruotoloassoc.com
Federal Grant Opportunities
The online Catalog of Federal Domestic Assistance gives you access to a database of all Federal programs available to State and local governments (including the District of Columbia); federally -recognized Indian tribal governments; Territories (and possessions) of the United States; domestic public, quasi-public, and private profit and nonprofit organizations and institutions; specialized groups; and individuals. After you find the program you want, contact the office that administers the program and find out how to apply.
Visit www.cfda.gov
Future N&N speaking engagements
- January 18, 2005 Bergen Council of the NJPTA Duties of a NFP Treasurer and related topics
- February 3, 2005 Bergen Chapter of the NJSCPA NFP revenue recognition and Yellow Book independence standards
Past N&N speaking engagements
- NJSCPA Passaic Chapter. A-133 and Yellow Book Audits are high risk engagements
- NJSCPA Business and Technology Show. What’s new in fundraising software
- Mercer Community College
- Managing the Relationship with Your CPA’s
- Avoiding Problems with Funding Sources: meeting critical programmatic requirements while maintaining the organization’s fiscal base.
- NJSCPA annual not for profit conference - revenue recognition in the not for profit industry
Do you have a helpful tip to share?
Contact Noble & Noble, LLP at enoble@noblellp.com
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