Just yesterday, I was interviewing a new student intern candidate in my office. During the course of our wide ranging discussion, the conversation turned to some of the interesting misconceptions we encounter with clients. I made the comment that we often feel like the crew of the Discovery Channel show, Mythbusters. There is a never-ending [...]
The True Cost of Noncompliance
Noncompliance. As the word suggests, noncompliance is the opposite of compliance. But what does noncompliance mean as it relates to your nonprofit? More important still, what is the true cost of noncompliance? If you have been a client or follower of Foundation Group for any length of time, you have heard us hounding you to [...]
IRS Announces Deadline for Tax Exemption Revocations
The IRS has finally announced its decision regarding the extension it promised to small charities facing the loss of tax exemption due to not filing Form 990N. Now, small nonprofits have until October 15, 2010 to file Form 990N and preserve their status. The IRS is calling this a one-time offer, so organizations that miss [...]
Don’t Avoid Your Nonprofit’s Problems
Imagine this scenario: You are catching up on Facebook one night when you see a post from a friend. Someone you both know has been diagnosed with a horrible disease and given little hope for recovery. You find out later that this person had experienced all the warning signs…pain, fatigue, other clues…for months before they [...]
Update on IRS Tax Exemption Revocations
It’s been almost two months since most tax-exempt organizations were required to file their annual IRS Form 990. As we have discussed at great length on these pages, the due date for tax year 2009 was the doomsday date for many nonprofits which had not filed Form 990 for three consecutive years. Now the numbers [...]
Get More Out of Your Fundraising Efforts
Let’s face it. Times couldn’t be tougher for many nonprofits, especially when it comes to raising money. And in the nonprofit world, things often run in inverse proportion: The tougher the economy, the greater the need…and the scarcer the resources. So what can you do to beat the odds and secure the necessary funding to [...]
Paying an Independent Contractor? Are You Sure?
This is a conversation our staff members have with clients at least 4 or 5 times per week: The issue of a nonprofit hiring and paying an independent contractor. What is fascinating is the degree of resistance we often get when attempting to explain the way the IRS and the state see such matters. Seems [...]
IRS Adds More Uncertainty to Tax Exemption Revocations
What a mess! Now that May 17, 2010 has come and gone, we are waiting to see just how many 501(c) organizations around the country have lost their tax exemptions. For those of you who have been keeping up, you know that May 17 was the due date for filing Form 990. Additionally, under federal [...]
One-Fourth of Nonprofits Set to Lose Tax Exemption
Doomsday is coming…May 18, 2010 to be exact. No, it has nothing to do with the Mayan calendar ending (that’s 2012!). May 18 is the day that nearly 1/4 of all US nonprofits find that the IRS has automatically revoked their tax exempt status. If you are doing the math, that is nearly 400,000 nonprofits. [...]
New IRS 1099 Rules Set to Hit Charities Hard
Posted on June 3, 2010 by Greg McRay in Commentary, Managing a Nonprofit
It seems like the hits just keep on coming. First it was the Form 990-N rule changes that will cost a yet-to-be-determined number of nonprofits their tax exemption. Now organizations are waking up to the news that the controversial new Health Care Law is bringing more draconian rule changes their way…namely the new requirements regarding [...]