PBMares Accounting Blog

When are activities of a nonprofit subject to income taxes?

Posted by Edward T. Yoder, CPA, MSA on Jun 19, 2017 2:41:58 PM

A nonprofit will not ordinarily be taxed on its revenues.  However, income from unrelated business income is subject to tax (UBIT).  UBIT is based on gross income derived by any nonprofit from any unrelated business activity it regularly conducts less the expenses directly connected with the activity.

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Topics: Not-for-Profits

Public Student Loan Forgiveness - A Great Way to Attract Employees to a Not-For-Profit

Posted by Nick Preusch, JD, LLM, MSA, CPA on Jun 5, 2017 1:44:38 PM

In 2007, President George Bush signed into law the Public Student Loan Forgiveness Program. This program allows people working in certain industries to have their student loans forgiven, tax-free, after 10 years. Usually people believe this program only applies to governmental employees. However, the law allows for employees of a 501(c)(3) not-for-profit to also qualify for student loan forgiveness. This is a great way to attract employees who may otherwise require a larger salary and a great way to keep employees at your not-for-profit.

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Topics: Not-for-Profits, Tax Planning

President Trump’s Proposed Budget Could Impact Your Nonprofit

Posted by Edward T. Yoder, CPA, MSA on May 23, 2017 3:43:11 PM

On Tuesday May 23, President Trump released his budget request for 2018 entitled “A New Foundation for American Greatness.”

The U.S. Government suffered budget deficits every year from 1970 through 1997.  There were surpluses recorded in 1998 through 2001, but deficits returned from 2002 through today. 

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Topics: Not-for-Profits

What really motivates nonprofit donors

Posted by Edward T. Yoder, CPA, MSA on May 18, 2017 11:33:34 AM

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Topics: Not-for-Profits, NFP Bites

Executive Order Changes For the IRS Will Enforce Political Speech Made by 501(c)(3)s

Posted by Nick Preusch, JD, LLM, MSA, CPA on May 11, 2017 8:30:00 AM

President Trump signed the Promoting Free Speech and Religious Liberty Executive Order on May 4, 2017. This Executive Order requests that the Treasury and IRS no longer enforce the Johnson Amendment, which does not allow 501(c)(3) tax exempt organizations to engage in certain types of political activities.

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Topics: Not-for-Profits, Tax Updates

Nonprofits: Don’t gamble with gaming fundraisers

Posted by Bo Garner, CPA, MBA on May 10, 2017 1:35:36 PM

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Topics: Not-for-Profits, NFP Bites

Does your nonprofit’s board understand its fiduciary duties?

Posted by Edward T. Yoder, CPA, MSA on May 3, 2017 2:49:45 PM

Interest in not-for-profits’ governance practices from lawmakers, watchdog groups and the general public has been growing in recent years. If your board hasn’t reviewed its roles and responsibilities recently, now is a good time.

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Topics: Not-for-Profits, NFP Bites

Engage your nonprofit’s supporters with social listening

Posted by Bo Garner, CPA, MBA on May 1, 2017 11:29:07 AM

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Topics: Not-for-Profits, NFP Bites

Simple ways to improve your nonprofit’s cash flow

Posted by Bo Garner, CPA, MBA on Mar 29, 2017 11:23:03 AM

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Topics: Not-for-Profits, NFP Bites

Changes to Not-for-Profit Revenue Recognition

Posted by Bo Garner, CPA, MBA on Mar 20, 2017 3:40:00 PM

As the implementation deadline of the new revenue recognition standards (ASU 2014-09) approaches, there are many companies and organizations scrambling to grasp the impact that the forthcoming changes will have on their financial reporting. For non-public entities, the changes are effective for reporting periods beginning after December 15, 2017.  Not-for-profit entities are having an even more difficult time than others, as there are already differences in practice in various components of revenue transactions. The new revenue recognition standards do not address these differences in practice, and in fact, actually make the current differences more ambiguous.

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Topics: Not-for-Profits