Category: Not-for-Profits

A private foundation generally pays a 1.39% excise tax each year on net investment income when filing its annual Form 990-PF. Since this is not a large tax, most small private foundations don’t spend much time (if any) on tax planning.  While the excise tax rate on net investment income is not substantial, below are some tax planning tips your private foundation may want to utilize. Net Capital Loss – What you need to know On Form 990-PF, net capital… Read more ›

As the presidential election approaches, CBM would like to take this opportunity to go over the basic rules that govern 501(c)(3) organizations (“charitable organizations”) pertaining to political activities. To put it simply, the Internal Revenue Code absolutely prohibits all 501(c)(3) organizations from directly or indirectly participating in, or intervening in, any political campaign on behalf of (or in opposition to) any candidate for elective public office. Violating this prohibition could lead to the loss of tax-exempt status and the imposition… Read more ›

On April 4, the Biden Administration announced the most significant revisions to the Uniform Guidance for Federal Financial Assistance (Section 2 C.F.R.200) since passage of the legislation 10 years ago. The primary goals of the revisions are to streamline compliance requirements, remove overly burdensome aspects of the application and grants administration process, clarify vague and too complex language, and improve access to funding for underrepresented communities and groups including tribal nations. The federal government annually disburses $1.2 trillion across a… Read more ›

The U.S. Department of Labor’s (DOL’s) test for determining whether a worker should be classified as an independent contractor or an employee for purposes of the federal Fair Labor Standards Act (FLSA) has been revised several times over the past decade. Now, the DOL is implementing a new final rule rescinding the employer-friendly test that was developed under the Trump administration. The new, more employee-friendly rule takes effect March 11, 2024. Role of the New Final Rule Even though the DOL’s final… Read more ›

Not-for-profit organizations in the District of Columbia (DC) are required to submit Form FR-164 to the Office of Tax and Revenue (OTR) to request tax-exempt status in DC. Previously, this was a one-time filing requirement, but due to changes in 2019, DC not-for-profit organizations must renew their DC tax-exempt status every five years. The OTR will send two notices, one 180 days before the expiration of an organization’s exemption certificate and another 30 days before expiration.  Not-for-profit organizations that renewed… Read more ›

UPDATE: On March 1, 2024, the U.S. District Court for the Northern District of Alabama ruled that the Corporate Transparency Act (CTA) was unconstitutional. In response to this ruling, the Financial Crimes Enforcement Network (FinCEN) has since indicated that it will comply with the ruling for as long as it remains in effect, and that this ruling only applies to the plaintiffs in the case. Click here to read more. The beneficial ownership information (BOI) reporting rules of the Corporate… Read more ›

Judith P. Barnhard, CPA, CFP®, CDFA®, an executive vice president and director of professional services, wealth management and financial planning at CBM, and Stephanie Anderson, CFA, CFP®, CDFA®, manager of divorce financial planning and wealth management at CBM, are scheduled to present on December 12 at the 2023 Greater Washington Society of CPAs Nonprofit Symposium. Their session, entitled Investing for Impact: A Guide to Not-for-Profit Investment Policies, is scheduled from 8:00 – 8:50 am, will address the foundation of an… Read more ›

Councilor, Buchanan & Mitchell (CBM) is proud to welcome Joseph J. Barreca, a senior manager with more than 20 years of expertise in not-for-profit taxation. Joe has dedicated his career to serving as a trusted advisor to different types of tax-exempt groups including public charities, operating and non-operating private foundations, business leagues, social welfare organizations, and social and recreational clubs. His wide-ranging experience includes the planning and preparation of tax returns including federal Forms 990, 990-PF, 990-T, and state returns…. Read more ›

Councilor, Buchanan & Mitchell (CBM) is proud to serve as a bronze sponsor at the 2023 Greater Washington Society of CPAs Nonprofit Symposium, which will combine web-based education and an in-person component from October 3 through December 12. CBM has sponsored, presented and exhibited at the symposium for many years. Members of the firm’s not-for-profit professional services team look forward to participating in this year’s symposium and attending in-person sessions at the Washington DC Convention Center on Tuesday, December 12…. Read more ›

Many job seekers and others assume that not-for-profit organizations offer fewer or less-generous fringe benefits to employees than for-profit companies. But that’s not necessarily true. According to a recent survey by the Nonprofit Times, 87% of nonprofit employers offer a health insurance plan. But as the Kaiser Family Foundation has found, only 49% of private for-profit companies with three to nine workers offer health insurance coverage to workers. Larger for-profit companies generally do offer health insurance and other benefits. So… Read more ›