Congress extended to 2008 and 2009 the provision that allows up to $100,000 tax free rollovers to charities from IRAs by those 70 ½ or older. The individual does not have to report the IRA distributions as taxable income; correspondingly, there is no further tax deduction available for the rollover. The charity must be a public charity, such as a church, and does not extend to donor-advised funds and supporting organizations.

In this political season, pastors and leaders on nonprofit organizations are constantly reminded to refrain from engaging in political activities or endorsing political candidates. This reminder is given with the threat of losing tax exempt status. Have you ever wondered how it came to be that churches in the United States of America have been prohibited from engaging in political activities? After all, in a nation founded on the principle of religious liberty, doesn’t the idea of separation of church and state protect the church from control or intrusion by the government?

On October 3, 2008, FDIC deposit insurance temporarily increased from $100,000 to $250,000 per depositor through December 31, 2009.

See additional information at http://www.fdic.gov/news/news/financial/2008/fil08102a.html

As we have discussed in our three previous posts, donors may receive something in exchange for a contribution. Whether it is a meal, a book, a video, all of these items are treated similarly. Remember the criteria for financial reporting?

What has been communicated to the donor and what is the donor’s intention in responding to the solicitation?

As we discussed in post #3, the direct donor benefits can be treated similar to cost of sales OR as a program or supporting service. Showing the expense as gross or disclosing the components of the value is the preferred reporting,