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 […]
Navigating Alternative Investments: A Tax-Savvy Approach for Nonprofits
Considering alternative investments for your not-for-profit entails a thorough evaluation of potential risks and rewards, especially in light of their distinct tax implications. While these investments often boast higher long-term performance compared to traditional securities, they present nuanced considerations that demand careful attention. Here’s a comprehensive overview to guide your decision-making process. Complex Valuation Dynamics […]
Optimizing Reimbursement Procedures: A Guide for Nonprofit Organizations
Prepare Now to Compensate Staff, Board Members, and Volunteers Regardless of how infrequently your not-for-profit organization needs to compensate staff, board members, or volunteers, there will likely come a time when reimbursement requests arise. Will your organization be equipped to handle these requests efficiently and in accordance with IRS regulations? A well-defined reimbursement policy is […]
