Insights by:
Kathy Cuddapah

Top 10 Risks for Associations – Risks That Should Be Discussed in Your Board Rooms

Associations today face more challenges than ever. You’re under extreme pressure to stay relevant to your members while simultaneously navigating new financial and operational complexities. We’re here to help. Our team of experts has highlighted 10 emerging risks that span across an association’s risk universe. These Top 10 Risks are just a sampling of the […]

IRS Issues Guidance on Parking Benefit Expenses to Be Included as UBTI for Nonprofits

The Internal Revenue Service (IRS) has issued Notice 2018-99, Parking Expenses for Qualified Transportation Fringes Under Section 274(a)(4) and 512(a)(7) of the Internal Revenue Code, which provides some clarity to nonprofits for determining the amount of increase to unrelated business taxable income (UBTI) for parking benefits provided to employees. This new UBTI is a result […]

Underpayment Penalty Relief for Nonprofits Subject to New Qualified Transportation Fringe Tax

Internal Revenue Service (IRS) Notice 2018-100 offers transitional relief to nonprofits from underpayment penalties related to the new qualified transportation tax. The new tax is applicable to nonprofits that provide certain benefits to employees, effective on January 1, 2018. The general tax rules provide that taxpayers must make four quarterly estimated payments during the year […]

New Excise Tax on Nonprofits

Tax Code Section 4960, added by the 2017 Tax Cuts and Jobs Act (TCJA), is generally effective for tax years beginning after December 31, 2017. It imposes an excise tax on all tax-exempt organizations, including political organizations that pay excess compensation. What were they thinking? Before TCJA, as now under existing tax law, no deduction […]

IRS Issues Notice Clarifying Trade or Businesses for UBI Purposes

The Internal Revenue Service (IRS) issued Notice 2018-67 on August 21, 2018, to an audience of nonprofit organizations and their advisors waiting on the edge of their seats for clarification of the new law passed last December. The agency revealed relatively good news for those nonprofits who have more than one source of unrelated business […]

Parking and Metro Fare Benefits Subject to Unrelated Business Income Tax

Action Item: Do You Need to Make Estimated Payments? Before April 15th, 2018 all nonprofits need to ask themselves, “Does my organization provide any nontaxable benefits to employees, contractors, partners, or directors, including:” Transportation in a commuter highway vehicle if such transportation is in connection with travel between the employee’s residence and place of employment […]

2018 Top 10 Risks for Associations

In all our client engagements, we partner with organizations to understand their needs and design services to support the strategic mission and add value to the organization. In this whitepaper, our team of experts have highlighted emerging risks that span across an association’s risk universe that boards should keep on their radar. Download our Top […]

New Tax Law Changes All Nonprofits Need to Plan for Now

The new tax law has significantly changed the landscape for income taxes applicable to corporations and individuals. Some of the wide-ranging changes to areas for individuals include eliminating personal exemptions, doubling the standard deduction, changes to itemized deductions, and raising the threshold for the alternative minimum tax. Corporations, on the other hand, have seen the […]

Tax Cuts and Jobs Act: 4 Changes That Effect Nonprofits

The new tax law, Tax Cuts and Jobs Act, is directly impacting nonprofits in four particular ways. There are many questions that remain as the law was written and passed hastily. The Internal Revenue Service will need to analyze the changes and provide guidance through updated forms, instructions, and in some cases procedures for complying […]

UBI Activity Loophole for Schools

Schools often rent their facilities to a third party when they’re not in use or have excess space. They usually do this as a community service; for instance, renting the facility to a daycare provider or a summer school, or to produce additional income. School business managers and CFOs should know that this type of […]

Alternative Investments and Reporting Requirements for Associations

Additional disclosures in the annual Form 990 and possible taxable implications — Many associations are investing in alternatives due to the ongoing economic recovery and low rate of returns from traditional investments. Endowment and board designated funds need to achieve investment targets, which can be near impossible to make with the average returns from mutual funds […]

New ASU 2016-14 Requires Expanded Nonprofit Expense Reporting – Does Your Chart of Accounts Measure Up?

Or more precisely, does your chart of accounts provide, easily, the reporting that is going to now be required of all nonprofits? The new ASU, 2016-14 Not-for-Profit Entities (Topic 958) Presentation of Financial Statements of Not-for-Profit Entities, will require financials statements of nonprofits to disclose expenses by both functional and natural classifications. In English, this […]