Restricted Gifts: What to Do When Strings Are Attached
Brad, the development director of an international environmental charity, was excited to hear that a past supporter was pledging a new, six-figure donation. But there was a catch: the donor wanted to restrict how and where her donation was used. While Brad welcomed the donation, he knew that restricted gifts come with specific responsibilities. If […]
When Your Nonprofit’s Debt-Financed Income Is Subject to Tax
For nonprofits, investment income from sources like dividends, interest, rents, and annuities is typically excluded from the calculation of unrelated business income tax (UBIT). However, when this income is derived from debt-financed property, it often becomes taxable. To avoid triggering unwanted IRS scrutiny, it’s crucial to segregate income from such properties and include it in […]
Protecting Nonprofit Finances: Safeguarding Against Fraud Risks
When it comes to financial fraud, nonprofits often operate on thin margins, making every dollar crucial to their mission. While it’s encouraging that nonprofits typically experience lower median losses from fraud compared to for-profit entities, this doesn’t diminish the importance of vigilance. In fact, with limited resources at their disposal, nonprofits can ill-afford any financial […]
