Governance Issues

Charity IRA Rollovers

Posted Mon, 11/10/2008 - 08:37 by Sandy Siegfried

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.

Cracks in the Wall of Separation

Posted Mon, 10/20/2008 - 12:00 by Daniel Skerbitz

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?

IRS Raises Travel Per Diem Rates

Posted Wed, 10/15/2008 - 12:59 by Daniel Skerbitz

IRS Raises Travel Per Diem Rates Effective October 1, 2008

FDIC Coverage Now $250,000

Posted Tue, 10/07/2008 - 15:54 by Kirk Vanderslice

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

Control Risk - #3 Risk Definition Series

Posted Fri, 09/26/2008 - 12:00 by Craig Legener

Control Risk (CR) - is the level of risk that a misstatement will occur and not be detected by the entity's internal controls.

IR (inherent risk - defined in previous post) x CR (defined above) = Risk of Material Misstatement

#3 of 3 Filing for Exempt Status

Posted Fri, 09/26/2008 - 12:00 by Daniel Skerbitz

In our previous posts we have discussed the criteria or the "14 point test" for churches. Churches are not required to file a Form 1023, however religious organizations with annual gross receipts greater than $5,000 must file.

In order for an organization to be tax-exempt, IRC 501(c)(3) requires the entity meet the following requirements:

1. organized and operated exclusively for religious, educational, scientific or other charitable purposes
2. net earnings may not inur to the benefit of any private individuals or shareholders

Get FDIC coverage over $100K through one bank

Posted Fri, 09/26/2008 - 10:07 by Justin Moore

Through a program called the Certificate of Deposit Account Registry Service, or CDARS (pronounced like “Cedars”) you can get full FDIC insurance for your deposit amounts larger than $100,000. Basically, your large deposit made at your bank is broken into smaller amounts and placed with other banks that belong to a special network, who then issue CD’s in amounts less than $100,000, ensuring that your entire investment is covered by the FDIC.

Benefits:
1. The convenience of dealing with one bank
2. Earn one rate on your entire investment

Phase-in filing of new Form 990

Posted Thu, 09/18/2008 - 13:00 by Justin Moore

To allow organizations time to adjust to the redesigned 990 series returns, the IRS is phasing in the new returns during a three-year transition period. Many more non-profits will be allowed to file Form 990-EZ during the phase-in period, according to irs.gov.

#5 Contributions - Deductible Amounts

Posted Fri, 08/15/2008 - 01:10 by Kirk Vanderslice

Over the past several weeks we have described the requirements for deducting and recording charitable contributions.

In this post we will discuss calculating the deduction...

The amount of charitable contributions that may be deducted by a taxpayer is limited based on adjusted gross income, the type of property contributed or the nature of the charity.

Limitations:

#6 Contributions - Substantiation Requirements

Posted Thu, 08/07/2008 - 16:42 by Sandy Siegfried

Over the past several months we have discussed the requirements for reporting/deducting charitable contributions. In our final post, we will discuss the substantiation rules...

The Pension Protection Act of 2006 (PPA of 2006) changed the substantiation requirements for deducting charitable contributions. Prior to 2007, donors could deduct charitable contributions using a cancelled check, a receipt from the charity or another reliable written document.