Nonprofit Advisor

  Over the past year, the IRS and U.S. Treasury provided guidance on the 2017 Tax Cuts and Jobs Act (TCJA) that significantly impacted nonprofit tax and compliance rules. This guidance clarified taxation on parking fringe benefits, excise tax on excess executive compensation, excise tax on investment income of private colleges, and other areas of […]

  The IRS Clarifies Plan Eligibility for Part-Time Employees As we have written about in prior editions of the Nonprofit Advisor (Summer 2016), 403(b) plans are challenged to track and account for part-time employees. 403(b) plans are generally required to cover all employees under their salary deferral plans (with specific exceptions), otherwise known as “universal […]

  Revisiting Not-for-Profit Functional Expenses as part of the Implementation of ASU 2016-14 Accounting Standards Update (ASU) 2016-14, Not-for-Profit Entities (Topic 958): Presentation of Financial Statements of Not-for-Profit Entities marked a significant change in the way nonprofits report on their results of operations. The ASU is effective for annual financial statements issued for fiscal years […]

The 2017 Tax Cuts and Jobs Act (TCJA) added Section 4960 to the IRS tax code which imposed an excise tax equal to the corporate tax rate (currently 21%) on the amount of remuneration in excess of $1 million and any excess parachute payment paid by an applicable tax-exempt organization to a covered employee. In […]

At Windes, we are fortunate to have a large nonprofit audit practice that provides services to over 100 organizations. As our nonprofit audit busy season comes to a close, we thought it would be helpful to summarize some common issues and questions that we encounter. What are the keys to having a smooth audit? We […]