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Capin Crouse has been a thought leader in the not-for-profit accounting world for more than 35 years. We have always felt compelled to share this expertise not only with our clients but with the entire not-for-profit community.
Articles and Alerts
Capin Crouse is often called upon to write or contribute to articles that appear in some of the leading not-for-profit industry publications. We also write and distribute email alerts as emerging issues dictate to keep our clients informed.
Capin Crouse is often called upon to write or contribute to articles that appear in some of the leading not-for-profit industry publications. We also write and distribute email alerts as emerging issues dictate to keep our clients informed.
Pension Protection Act of 2006 >>
Email Alert – September 2006
By Capin Crouse LLP
When President Bush signed the Pension Protection Act of 2006 (PPA-2006) on August 17, 2006 (date of enactment), one of the largest tax acts in recent years became law. Most of the Act addresses defined benefit and other retirement plans. However, as it passed through Congress several elements regarding charitable giving and exempt organization compliance were added. Each of these changes likely affects a limited number of charitable organizations, but can have a significant effect on those organizations affected.
In Kind Giving >>
The Church Report – September 2006
By Gregg Capin
Our modern connotation of “tithes and offerings” deals principally with money. Rather than money, gifts-in-kind – gifts of property – claim the oldest history in the Bible. When we read of Cain and Abel, consider how the brothers presented their first tithes. Abel presented “the firstborn of his flock and their fat portions,” while Cain “brought to the LORD an offering of the fruit of the ground” (Gen 4:3-4). They tithed property.
IRA Charitable Gift Roll-Over Extended for 2008-2009 >>
Email Alert – October 2008
By Capin Crouse LLP
The “Bail Out” bill included sections extending several expired or expiring tax laws. The popular IRA charitable gift roll-over, which had expired at the end of 2007, was extended for 2008 and 2009.
Executive Compensation and Retirement Planning >>
Email Alert – October 2008
By Capin Crouse LLP
In 2006, the United Way of Central Carolinas ("UWCC") approved a compensation package for its chief executive, which included a very large retirement package. In September 2008, after the package became widely known and criticized, they fired her and the board chair resigned. The current fund raising campaign (still in progress when this is written), is not going well.
Tone at the Top >>
em – October 2006
By Gregg Capin
I’m sometimes asked, “Is there a single factor that distinguishes churches that have good financial processes from those that don’t?” That’s easy. Auditors refer to it as “tone at the top” or the “control environment.”
FIN 48 Deadline Deferral >>
Email Alert – November 2007
By Capin Crouse
On November 7, 2007, the Financial Accounting Standards Board (FASB) voted to delay the effective date of FASB Interpretation No. 48, Accounting for Uncertainty in Income Taxes (FIN 48), for nonpublic companies including nonpublic not-for-profit entities, unless it has already been applied and financial statements issued to third parties. Those that haven’t already implemented the new rules can now postpone compliance until periods beginning after December 15, 2007. For most entities, this reprieve means that FIN 48 will affect only their calendar-year 2008 and later financial statements.
How Experience Counts >>
The Church Report – November 2006
By Gregg Capin
When churches select auditors, they have many choices. A glance at the telephone yellow pages will display many names with the initials “CPA” after them. While many people are too polite to be so bold, some prospective clients will ask what our firm (or any particular firm) brings to an audit engagement that makes us stand out in the field.
Reducing Liability Risk from Identity Theft >>
Email Alert – May 2006
By Capin Crouse LLP
Identity theft has been highlighted in the news over the past few years. One bank has an entertaining advertisement emphasizing their ability to protect their customers from identity theft. Colleges, the Veterans Administration and credit card companies have had data stolen. All of the parties from whom this information was taken appeared to treat the confidentiality issue seriously, but they were unsuccessful.
Form 990-990T Changes >>
Email Alert – May 2007
By Capin Crouse LLP
As a result of the Pension Protection Act of 2006 (PPA-2006) and other changes in the tax exempt world there have been important changes in Form 990 and Form 990T. The following highlight changes management generally should know.
Donor Advised Funds Side Effects >>
Email Alert – March 2007
By Capin Crouse LLP
The Pension Protection Act of 2006 (PPA-2006) imposed several new requirements and limitations on Donor Advised Funds (DAF). Although many organizations do not hold DAFs, the indirect consequences of the new DAF rules are affecting organizations and churches that do not have DAFs. If your organization has DAFs, or is considering establishing them, please request our Donor Advised Fund Memorandum that describes them and their new definitions and requirements directly and more completely. This article focuses on consequences to organizations which do not sponsor DAFs.
“Excess Benefit” – What it is, who it applies to, why it matters and how to avoid it! >>
Email Alert – March 2006
By Capin Crouse LLP
It’s a principle that applies to all nonprofits—a charity’s assets must be dedicated for public benefit, not private gain. Trustees, directors and other insiders have always had a fiduciary duty to prevent private gain. Starting in 1996, the intermediate sanction / excess benefit rules bring financial consequences for abusing this trust.
New 403(b) Retirement Plan Rules and Regulations - Update >>
Email Alert – June 2008
By Capin Crouse LLP
During 2007, the U.S. Department of Labor and the Internal Revenue Service issued new rules and regulations affecting all 403(b) retirement plans starting January 1, 2009. Here is a summary of some of the new requirements.
IRS Announces Increased Enforcement of Foreign Account Reporting Rules. >>
Email Alert – June 2008
By Capin Crouse LLP
We recently received the notice below concerning Form TD F 90-22.1: Foreign Bank and Financial Account Report (FBAR). A previous Email Alert communicated more detailed information about this form.
IRS Raises Mileage Rates >>
Email Alert – June 2008
By Capin Crouse LLP
Effective July 1, 2008, the business mileage rate will be increased to 58.5 cents per mile.
College and University Audit Risk Alert 2006 >>
Email Alert – June 2006
By Capin Crouse LLP
In 1983, George Keller‘s book Academic Strategy, warned that “A specter is haunting higher education: the specter of decline and bankruptcy”. He went on to predict “that between 10 percent and 30 percent of America’s 3,400 non-profit, degree-granting colleges and universities will close their doors or merge by 1995. On many campuses the fear of imminent contraction or demise is almost palpable….[O]ne-quarter of all private colleges and universities are now drawing on endowment to meet operating expenses.” He also cited the significant rise in oil prices, the possible collapse of the social security system and rising health care and technology costs as reasons for his dim view of the prospects for higher education. If one compares his predicted state of affairs with the issues listed in the January 2006 issue of the Chronicle of Higher Education, the only error in his pessimistic forecast was to be ahead of his time.
New Form 990 Radically Changes Reporting to the IRS >>
Email Alert – July 2008
By Capin Crouse LLP
The new Form 990, effective for the 2008 fiscal year, will eventually affect all clients subject to IRS reporting. Because the new form customizes the package to better fit the specific operations of non-profit organizations, it will initially be more complicated for everyone.
Annual Inflation Adjustments >>
Email Alert – January 2007
By Capin Crouse LLP
The IRS has issued its annual adjustments for 2007. The following table reflects adjustments of certain amounts and limits that often affect many of our clients. The trend toward electronic filing of Form 990 will reach more organizations this coming year. For tax years ending on or after December 31, 2006, the electronic filing requirement applies to exempt organizations with $10 million or more in total assets ($100 million in 2005) if the organization files at least 250 returns in a calendar year, including income, excise, employment tax and information returns.
Vehicle Donation Updates >>
Email Alert – January 2006
By Capin Crouse LLP
In late 2004, Congress added substantial, challenging, new receipting and reporting requirements for gifts of vehicles (automobiles, aircraft and boats). These became effective January 1, 2005, and many organizations struggled in 2005 to comply, as guidance trickled out of the IRS.
2007 Tax Planning Letter >>
Online Resources – January 2007
By Capin Crouse LLP
Make time in 2007 to review your short- and long-term financial goals and to consider the tax planning moves that will help you achieve those goals. This Tax Planning Letter can help you get started.
Who’s In Your Kitchen Cabinet? >>
The Church Report – January 2007
By Gregg Capin
Calling the President’s advisors the “cabinet” is an old tradition, dating from the time of George Washington in 1793. These department heads are appointed by the President but subject to confirmation (and a public grilling) by the Senate. In 1829, newly elected President Andrew Jackson preferred to use an informal group of advisors whom he trusted. Wags quickly christened it the “kitchen cabinet.” Whether they really got their start in the White House kitchen or not, the name stuck.
Georgia Sales Tax Exemption Unconstitutional >>
Email Alert – February 2006
By Capin Crouse LLP
The state of Georgia statutes which exempted from sales tax the sale of "Holy Bibles, testaments, and similar books commonly recognized as being Holy Scripture" and "any religious paper in this state when the paper is owned and operated by religious institutions or denomination" were declared unconstitutional on February 6, 2006 by a US District Court.
Foreign Entity Reporting >>
Email Alert – February 2007
By Capin Crouse LLP
Congress has a split personality over the involvement of Americans in foreign countries. It wants them over there doing business and provides special provisions to encourage foreign trade such as the Foreign Earned Income Exclusion, but it is concerned they will use that business to avoid US income tax and has enacted laws to curb identified abuses.
Roth Retirement Plan Account Update >>
Email Alert – February 2006
By Capin Crouse LLP
Last summer, we issued an alert to bring the new “retirement plan Roth account” to our clients and other organization’s attention. This retirement option has so much potential for organizations with foreign employees that it is worth re-emphasizing. There has also been some clarification of requirements since last summer.
Retirement and Deferred Compensation Plan Changes >>
Email Alert – December 2007
By Capin Crouse LLP
As a result of several law changes, starting with the Employees Retirement Income Security Act of 1974 (ERISA) and continuing through regulations issued in 2007, retirement plans and deferred compensation arrangements are effectively all regulated and must meet specific legal requirements.
Updated-2008 Key Federal Tax Figures-Corrected >>
Email Alert – December 2007
By Capin Crouse LLP
Following is our annual update of federal tax figures often useful to exempt organizations. In order to keep it brief, we have not included explanations, but we will be happy to provide additional information as needed
Financial Dashboard >>
The Church Report – December 2006
By Gregg Capin
It’s interesting how we adapt language to fit new circumstances. Take the word, “dashboard,” for instance.
Important New Form 990 Instructions For Tax-Exempt Organizations >>
Email Alert – August 2008
By Capin Crouse LLP
On August 19, the IRS issued instructions for the redesigned Form 990, "Return of Organization Exempt from Income Tax," which it had released in December 2007. Because the complex new form is designed to enhance transparency and promote tax compliance, it may require greater public disclosure of management processes, as well as financial transactions.
New FASB pronouncement on accounting and disclosures for endowment funds >>
Email Alert – August 2008
By Capin Crouse LLP
On August 6, the Financial Accounting Standards Board (FASB) released FASB Staff Position No. FAS 117-1, Endowments of Not-for-Profit Organizations: Net Asset Classification of Funds Subject to an Enacted Version of the Uniform Prudent Management of Institutional Funds Act, and Enhanced Disclosures for All Endowment Funds
Revised Form 990 >>
Email Alert – August 2007
By Capin Crouse LLP
The IRS has released for comment the draft of a substantially revised Form 990. The draft format is very different, and the content requested differs in a number of areas from the current Form 990.
Budgeting is Not a Four Letter Word >>
The Church Report – August 2006
By Gregg Capin
This month’s column commences a series on the subject of financial planning. The old aphorism says that “those who fail to plan, plan to fail.” Because churches have a God-given mandate to be good stewards, it’s important that we use all the tools at our disposal to accomplish the goals of the church. If your church plans poorly or not at all, then this guide is for you.
Being Benevolent >>
The Church Report – August 2006
By Gregg Capin
“Will you help me?” Christians hearing those words are—or should be—pierced to the heart.
2008 Tax Planning Letter >>
Online Resources – April 2008
By Capin Crouse LLP
Make time in 2008 to review your short- and long-term financial goals and to consider the tax planning moves that will help you achieve those goals. This Tax Planning Letter can help you get started.
Credit Card Settlement >>
Email Alert – April 2008
By Capin Crouse LLP
A class action was filed and a settlement reached concerning over-charges by Visa, MasterCard, and Diner’s Club credit cards to card holders between 2/1/96 to 11/8/2006. Below are FAQs from the website about this settlement: http://www.ccfsettlement.com/ Claims must be filed by May 30, 2008.
New 403(b) Requirements >>
Email Alert – April 2008
By Capin Crouse LLP
There are big changes in store for all 403(b) plans, many of which will be effective January 1, 2009. This email alert highlights some of the major ones that 403(b) sponsors must consider.
Back to top
Email Alert – September 2006
By Capin Crouse LLP
When President Bush signed the Pension Protection Act of 2006 (PPA-2006) on August 17, 2006 (date of enactment), one of the largest tax acts in recent years became law. Most of the Act addresses defined benefit and other retirement plans. However, as it passed through Congress several elements regarding charitable giving and exempt organization compliance were added. Each of these changes likely affects a limited number of charitable organizations, but can have a significant effect on those organizations affected.
In Kind Giving >>
The Church Report – September 2006
By Gregg Capin
Our modern connotation of “tithes and offerings” deals principally with money. Rather than money, gifts-in-kind – gifts of property – claim the oldest history in the Bible. When we read of Cain and Abel, consider how the brothers presented their first tithes. Abel presented “the firstborn of his flock and their fat portions,” while Cain “brought to the LORD an offering of the fruit of the ground” (Gen 4:3-4). They tithed property.
IRA Charitable Gift Roll-Over Extended for 2008-2009 >>
Email Alert – October 2008
By Capin Crouse LLP
The “Bail Out” bill included sections extending several expired or expiring tax laws. The popular IRA charitable gift roll-over, which had expired at the end of 2007, was extended for 2008 and 2009.
Executive Compensation and Retirement Planning >>
Email Alert – October 2008
By Capin Crouse LLP
In 2006, the United Way of Central Carolinas ("UWCC") approved a compensation package for its chief executive, which included a very large retirement package. In September 2008, after the package became widely known and criticized, they fired her and the board chair resigned. The current fund raising campaign (still in progress when this is written), is not going well.
Tone at the Top >>
em – October 2006
By Gregg Capin
I’m sometimes asked, “Is there a single factor that distinguishes churches that have good financial processes from those that don’t?” That’s easy. Auditors refer to it as “tone at the top” or the “control environment.”
FIN 48 Deadline Deferral >>
Email Alert – November 2007
By Capin Crouse
On November 7, 2007, the Financial Accounting Standards Board (FASB) voted to delay the effective date of FASB Interpretation No. 48, Accounting for Uncertainty in Income Taxes (FIN 48), for nonpublic companies including nonpublic not-for-profit entities, unless it has already been applied and financial statements issued to third parties. Those that haven’t already implemented the new rules can now postpone compliance until periods beginning after December 15, 2007. For most entities, this reprieve means that FIN 48 will affect only their calendar-year 2008 and later financial statements.
How Experience Counts >>
The Church Report – November 2006
By Gregg Capin
When churches select auditors, they have many choices. A glance at the telephone yellow pages will display many names with the initials “CPA” after them. While many people are too polite to be so bold, some prospective clients will ask what our firm (or any particular firm) brings to an audit engagement that makes us stand out in the field.
Reducing Liability Risk from Identity Theft >>
Email Alert – May 2006
By Capin Crouse LLP
Identity theft has been highlighted in the news over the past few years. One bank has an entertaining advertisement emphasizing their ability to protect their customers from identity theft. Colleges, the Veterans Administration and credit card companies have had data stolen. All of the parties from whom this information was taken appeared to treat the confidentiality issue seriously, but they were unsuccessful.
Form 990-990T Changes >>
Email Alert – May 2007
By Capin Crouse LLP
As a result of the Pension Protection Act of 2006 (PPA-2006) and other changes in the tax exempt world there have been important changes in Form 990 and Form 990T. The following highlight changes management generally should know.
Donor Advised Funds Side Effects >>
Email Alert – March 2007
By Capin Crouse LLP
The Pension Protection Act of 2006 (PPA-2006) imposed several new requirements and limitations on Donor Advised Funds (DAF). Although many organizations do not hold DAFs, the indirect consequences of the new DAF rules are affecting organizations and churches that do not have DAFs. If your organization has DAFs, or is considering establishing them, please request our Donor Advised Fund Memorandum that describes them and their new definitions and requirements directly and more completely. This article focuses on consequences to organizations which do not sponsor DAFs.
“Excess Benefit” – What it is, who it applies to, why it matters and how to avoid it! >>
Email Alert – March 2006
By Capin Crouse LLP
It’s a principle that applies to all nonprofits—a charity’s assets must be dedicated for public benefit, not private gain. Trustees, directors and other insiders have always had a fiduciary duty to prevent private gain. Starting in 1996, the intermediate sanction / excess benefit rules bring financial consequences for abusing this trust.
New 403(b) Retirement Plan Rules and Regulations - Update >>
Email Alert – June 2008
By Capin Crouse LLP
During 2007, the U.S. Department of Labor and the Internal Revenue Service issued new rules and regulations affecting all 403(b) retirement plans starting January 1, 2009. Here is a summary of some of the new requirements.
IRS Announces Increased Enforcement of Foreign Account Reporting Rules. >>
Email Alert – June 2008
By Capin Crouse LLP
We recently received the notice below concerning Form TD F 90-22.1: Foreign Bank and Financial Account Report (FBAR). A previous Email Alert communicated more detailed information about this form.
IRS Raises Mileage Rates >>
Email Alert – June 2008
By Capin Crouse LLP
Effective July 1, 2008, the business mileage rate will be increased to 58.5 cents per mile.
College and University Audit Risk Alert 2006 >>
Email Alert – June 2006
By Capin Crouse LLP
In 1983, George Keller‘s book Academic Strategy, warned that “A specter is haunting higher education: the specter of decline and bankruptcy”. He went on to predict “that between 10 percent and 30 percent of America’s 3,400 non-profit, degree-granting colleges and universities will close their doors or merge by 1995. On many campuses the fear of imminent contraction or demise is almost palpable….[O]ne-quarter of all private colleges and universities are now drawing on endowment to meet operating expenses.” He also cited the significant rise in oil prices, the possible collapse of the social security system and rising health care and technology costs as reasons for his dim view of the prospects for higher education. If one compares his predicted state of affairs with the issues listed in the January 2006 issue of the Chronicle of Higher Education, the only error in his pessimistic forecast was to be ahead of his time.
New Form 990 Radically Changes Reporting to the IRS >>
Email Alert – July 2008
By Capin Crouse LLP
The new Form 990, effective for the 2008 fiscal year, will eventually affect all clients subject to IRS reporting. Because the new form customizes the package to better fit the specific operations of non-profit organizations, it will initially be more complicated for everyone.
Annual Inflation Adjustments >>
Email Alert – January 2007
By Capin Crouse LLP
The IRS has issued its annual adjustments for 2007. The following table reflects adjustments of certain amounts and limits that often affect many of our clients. The trend toward electronic filing of Form 990 will reach more organizations this coming year. For tax years ending on or after December 31, 2006, the electronic filing requirement applies to exempt organizations with $10 million or more in total assets ($100 million in 2005) if the organization files at least 250 returns in a calendar year, including income, excise, employment tax and information returns.
Vehicle Donation Updates >>
Email Alert – January 2006
By Capin Crouse LLP
In late 2004, Congress added substantial, challenging, new receipting and reporting requirements for gifts of vehicles (automobiles, aircraft and boats). These became effective January 1, 2005, and many organizations struggled in 2005 to comply, as guidance trickled out of the IRS.
2007 Tax Planning Letter >>
Online Resources – January 2007
By Capin Crouse LLP
Make time in 2007 to review your short- and long-term financial goals and to consider the tax planning moves that will help you achieve those goals. This Tax Planning Letter can help you get started.
Who’s In Your Kitchen Cabinet? >>
The Church Report – January 2007
By Gregg Capin
Calling the President’s advisors the “cabinet” is an old tradition, dating from the time of George Washington in 1793. These department heads are appointed by the President but subject to confirmation (and a public grilling) by the Senate. In 1829, newly elected President Andrew Jackson preferred to use an informal group of advisors whom he trusted. Wags quickly christened it the “kitchen cabinet.” Whether they really got their start in the White House kitchen or not, the name stuck.
Georgia Sales Tax Exemption Unconstitutional >>
Email Alert – February 2006
By Capin Crouse LLP
The state of Georgia statutes which exempted from sales tax the sale of "Holy Bibles, testaments, and similar books commonly recognized as being Holy Scripture" and "any religious paper in this state when the paper is owned and operated by religious institutions or denomination" were declared unconstitutional on February 6, 2006 by a US District Court.
Foreign Entity Reporting >>
Email Alert – February 2007
By Capin Crouse LLP
Congress has a split personality over the involvement of Americans in foreign countries. It wants them over there doing business and provides special provisions to encourage foreign trade such as the Foreign Earned Income Exclusion, but it is concerned they will use that business to avoid US income tax and has enacted laws to curb identified abuses.
Roth Retirement Plan Account Update >>
Email Alert – February 2006
By Capin Crouse LLP
Last summer, we issued an alert to bring the new “retirement plan Roth account” to our clients and other organization’s attention. This retirement option has so much potential for organizations with foreign employees that it is worth re-emphasizing. There has also been some clarification of requirements since last summer.
Retirement and Deferred Compensation Plan Changes >>
Email Alert – December 2007
By Capin Crouse LLP
As a result of several law changes, starting with the Employees Retirement Income Security Act of 1974 (ERISA) and continuing through regulations issued in 2007, retirement plans and deferred compensation arrangements are effectively all regulated and must meet specific legal requirements.
Updated-2008 Key Federal Tax Figures-Corrected >>
Email Alert – December 2007
By Capin Crouse LLP
Following is our annual update of federal tax figures often useful to exempt organizations. In order to keep it brief, we have not included explanations, but we will be happy to provide additional information as needed
Financial Dashboard >>
The Church Report – December 2006
By Gregg Capin
It’s interesting how we adapt language to fit new circumstances. Take the word, “dashboard,” for instance.
Important New Form 990 Instructions For Tax-Exempt Organizations >>
Email Alert – August 2008
By Capin Crouse LLP
On August 19, the IRS issued instructions for the redesigned Form 990, "Return of Organization Exempt from Income Tax," which it had released in December 2007. Because the complex new form is designed to enhance transparency and promote tax compliance, it may require greater public disclosure of management processes, as well as financial transactions.
New FASB pronouncement on accounting and disclosures for endowment funds >>
Email Alert – August 2008
By Capin Crouse LLP
On August 6, the Financial Accounting Standards Board (FASB) released FASB Staff Position No. FAS 117-1, Endowments of Not-for-Profit Organizations: Net Asset Classification of Funds Subject to an Enacted Version of the Uniform Prudent Management of Institutional Funds Act, and Enhanced Disclosures for All Endowment Funds
Revised Form 990 >>
Email Alert – August 2007
By Capin Crouse LLP
The IRS has released for comment the draft of a substantially revised Form 990. The draft format is very different, and the content requested differs in a number of areas from the current Form 990.
Budgeting is Not a Four Letter Word >>
The Church Report – August 2006
By Gregg Capin
This month’s column commences a series on the subject of financial planning. The old aphorism says that “those who fail to plan, plan to fail.” Because churches have a God-given mandate to be good stewards, it’s important that we use all the tools at our disposal to accomplish the goals of the church. If your church plans poorly or not at all, then this guide is for you.
Being Benevolent >>
The Church Report – August 2006
By Gregg Capin
“Will you help me?” Christians hearing those words are—or should be—pierced to the heart.
2008 Tax Planning Letter >>
Online Resources – April 2008
By Capin Crouse LLP
Make time in 2008 to review your short- and long-term financial goals and to consider the tax planning moves that will help you achieve those goals. This Tax Planning Letter can help you get started.
Credit Card Settlement >>
Email Alert – April 2008
By Capin Crouse LLP
A class action was filed and a settlement reached concerning over-charges by Visa, MasterCard, and Diner’s Club credit cards to card holders between 2/1/96 to 11/8/2006. Below are FAQs from the website about this settlement: http://www.ccfsettlement.com/ Claims must be filed by May 30, 2008.
New 403(b) Requirements >>
Email Alert – April 2008
By Capin Crouse LLP
There are big changes in store for all 403(b) plans, many of which will be effective January 1, 2009. This email alert highlights some of the major ones that 403(b) sponsors must consider.
Back to top
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