We often are asked how sales tax applies to 501(c)(3) organization’s fundraising events. CPA Mary Archibald, who specializes in nonprofits, was kind enough to address this question. Read on to glean Mary’s wisdom on this topic. The sales tax requirements may be misunderstood because most 501(c)(3) organizations do not pay income tax. Therefore, they often …
Posts Categorized: Taxes
Does Your Nonprofit Pay Its Payroll Taxes?
According to a recently released report from the Treasury Inspector General for Tax Administration (TIGTA), although most exempt organizations pay their federal taxes, more than 64,200 of the nearly 1.7 million organizations recognized as exempt (or 3.8%) had nearly $875 million of federal tax debt as of June, 2012. This included payroll taxes, unrelated business …
IRS Fixes Retroactive Automatic Revocation Catch-22
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 …
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 …