Nonprofit Issues Newsletter, December 2018
IRS Issues Interim Guidance on “Parking Tax”
The IRS and Treasury have released much-anticipated guidance on the “parking tax” under Internal Revenue Code (IRC) section 512(a)(7). As we suspected, paying a third party for employee parking and reimbursing employees for parking is taxable.
Read this Email Alert for details, including a computation for determining the percentage of employee parking spaces.
Qualified Charitable Distribution Trap for IRA Checkbook Holders
There’s a potential pitfall for IRA owners whose account is with a custodian that provides the owner with a checkbook they can use to write checks on their IRA account.
Here’s what your organization should know about this issue as the end of the year approaches.
Predictive Analytics Is Transforming NPO Fundraising
This technology is enabling nonprofits to run more effective fundraising campaigns and quickly boost their fundraising results.
Challenges in Auditing GIK
Assessing a nonprofit’s policies and procedures related to valuing material gifts-in-kind (GIK) transactions is an important part of an NFP audit. Because there is no single source of pricing that is appropriate for valuing GIK donations, it falls on the NFP to arrive at an appropriate estimate of fair value.
These key considerations can help.
IRS Provides Guidance on New UBIT Rules
The IRS has released Notice 2018-67, providing some much-needed guidance on the provision in the new Tax Cuts and Jobs Act that requires calculation of unrelated business taxable income (UBTI) separately with respect to each unrelated trade or business.
While the IRS still intends to issue proposed regulations on this sometime in the future, the Notice provides some guidelines which will help exempt organizations compute their UBTI in the short-term. This article explains.
Are Grants Subject to Revenue Recognition?
Classifying grants as either a contribution or exchange transaction is the first step in implementing revenue recognition. The clarified guidance in ASU 2018-08 aims to help nonprofits complete that first step in a consistent way across the sector.
This article outlines a practical example of the process to evaluate a grant under the new ASU.
Fran Brown Named Managing Partner in Strategic Leadership Transition
We are pleased to announce that Fran Brown has been appointed Managing Partner of CapinCrouse, effective January 1, 2019. Gregory B. Capin, Partner, Chairman, and Interim CEO, will retire as a partner of the firm on December 31, 2018. He will continue to serve as an advisor to the firm.
This strategic leadership transition positions the firm for future growth through a continued focus on its mission of serving organizations whose outcomes are measured in lives changed. Learn more >Sign up for e-news and alerts