August 31, 2010, 10:43 pm
The healthcare act passed in spring 2010 provides a tax credit to small businesses and nonprofit organizations to assist with the cost of providing health care to employees. The tax credit is available to NPOs with less than 25 full time equivalents that pay over half of the health insurance costs and have less than $50,000 average compensation per person. For those nonprofit employers who qualify, the credit is 25% of healthcare costs and is offset against payroll taxes. There is a phase-out calculation when full time equivalents are over 10 and average compensation is over $25,000. As you would expect, there are detailed rules and requirements.
The IRS has a fact sheet available. They also have a one minute YouTube video. (A YouTube video? From the IRS? Yes, a YouTube video from the tax people.)
Remember this is a brief overview. Check out the IRS information and consult with your tax advisor before you do anything!
Update on 9-7-10 – The IRS announced today that the method of receiving the credit for NPOs will be for those organizations to file a soon-to-be modified 990-T. That is the form used to report unrelated business income and to pay taxes on the UBI. The formwill be modified for the tax credit. Watch for more details in the future.
August 31, 2010, 10:39 pm
New accounting rules for mergers and acquisitions of nonprofit organizations are now in effect. In the past, when two nonprofit organizations came together, the accounting was essentially to combine the accounting information of the two entities. This is no longer allowed.
Under the new rules, there are mergers and acquisitions. The accounting for each is quite different. Read the rest of this entry »
August 31, 2010, 10:14 pm
Looking for a good introduction to NPO tax issues? Want a primer for your new board members? The IRS has a great web-based course that provides a well designed overview of many tax-exempt issues. Read the rest of this entry »
August 31, 2010, 10:11 pm
August 30, 2010, 8:13 pm
Barna Research Group surveyed 1,114 Protestant churches in the 4th quarter of 2009 to find out what impact the recession had on them in 2009. Read the rest of this entry »
August 29, 2010, 10:46 pm
Nonprofits with revenue under $25,000 per year must file a 990-N at least once every 3 years to avoid loss of tax-exempt status. The deadline for filing the first 990-N, or risk losing exempt status, has been extended by the IRS. Christine Abrams, CPA, has more details.
August 29, 2010, 5:11 pm
GuideStar surveyed almost 7,000 NPOs to find out what happened in giving for the first five months of 2010. Read the rest of this entry »