You probably know that it can take a very long time for the IRS to review your organization’s exemption application. What you may not know is that a new nonprofit is required to file its Form 990, 990EZ, or 990N-ePostcard even while its application is pending. This means that it is possible that by the …
Posts Categorized: Taxes
Big Trouble for College Football?
Today the Chicago District of the National Relations Board ruled that football players at Northwestern University are employees and can unionize. The Board found that players’ scholarships are tied directly to their performance on the field, they are working between 20-50 hours per week, and they are generating millions of dollars for the university. This …
Charitable Deduction Under Attack – AGAIN
How much does your nonprofit rely on donations from wealthy individuals? Many nonprofit leaders are asking themselves that very question right now. Once again, calls from both Democrats and Republicans threaten to limit the charitable deduction. In his proposed budget for fiscal year 2015 (which starts October 1, 2015), President Obama caps all itemized deductions …
State Exemption Simplified
California recognizes organizations exempt under section 501(c)(3) of the Internal Revenue Code (“IRC”) as automatically exempt for California income and franchise tax purposes. But currently the Franchise Tax Board (“FTB”) doesn’t extend the same courtesy to other types of 501(c) organizations. This means that those organizations must complete a lengthy exemption application to achieve state …
Free Tax Seminar for Nonprofits
Representatives from the Board of Equalization, Employment Development Department, Franchise Tax Board, and Attorney General’s Office are coming together to talk about nonprofit and exempt organizations this Tuesday, September 17, 2013 in Lake Forest. Although a hike for some, this tax seminar should be well worth it for all nonprofit managers. There will be presentations …
IRS Releases Report on Colleges and Universities Study
In 2008, the IRS conducted a survey of colleges and universities in a number of areas including executive compensation and unrelated business income. About 400 organizations received the survey. Based on the questionnaire responses, the IRS decided to open further investigations into 34 of the surveyed colleges and universities. The results were shocking. A large …