Jim Ulvog

Do some research on the Executive Order addressing religious freedom

Image courtesy of Adobe Stock

I don’t do politics on my blogs.

I do pay attention to issues affecting non-profits.

So when the president issues an Executive Order addressing religious freedom, it is worth discussing even though it is a politically loaded EO.

On May 4, the president issued an EO which reportedly pulls back on the ban against churches getting involved in political campaigns.

In a one sentence overstatement, under current law 501(c)(3) exempt organizations may not involve themselves in political campaigns and may only get involved in very limited ways in legislative efforts. Ok, I’ll add a second sentence – That means churches and other exempt organizations may not endorse or favor a political candidate but may exert some effort addressing matters before a legislative body.

Based only on initial reports, the EO appears to contain several major items. First, telling the IRS to use maximum discretion in applying the rules on the political ban. Second, telling the Attorney General to develop guidelines for federal agencies on how they apply their rules in terms of religious freedom. Third, asking federal agencies to make certain changes in health care requirements regarding contraceptive coverage.

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Jim Ulvog

Justice grinds slow, but it does grind: Guilty plea for shooting of Walter Scott in North Charleston.

Image courtesy of Adobe Stock.

In April 2015, an officer with the North Charleston, S.C. police department shot a man in the back as the citizen slowly ran away from the officer after an altercation.

In December 2016 the officer achieved a hung verdict in his murder trial after claiming he feared for his life after a struggle for his taser. He was facing a retrial at state level.

On May 3, 2017, the officer plead guilty to the federal crime of violating the man’s civil rights. He will be sentenced later.

Justice takes time, sometimes.

After you watch the video below and read my description of the incident, you will appreciate two questions that come to mind. For background, consider I am a middle-class, middle-age, white male, who runs my own business.

Here are the two distressing questions I’ve been pondering for the past two years:

  • How often did this type of incident take place in the past, when nobody had a video recorder in their pocket?
  • How often does this type of incident take place today?

A Wall Street Journal article provides background on the plea and the case:  Former S.C. Policeman Pleads Guilty in Shooting of Walter Scott. The officer was fired immediately after the incident. The city apologized and reached a $6.5M settlement with the family.

If you have the stomach for it, feel free to watch the following video:

Please know in advance it is upsetting.

 

[youtube=https://www.youtube.com/watch?v=XKQqgVlk0NQ]

 

My observations:

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Jim Ulvog

He is risen!

Death on a cross Friday isn’t the end of the story. The tomb is empty on Sunday, because HE IS RISEN! Image courtesy of Adobe Stock.

 

Here’s a selection of videos to help your Easter celebration:

 

Jesus Christ is risen today!

[youtube=http://www.youtube.com/watch?feature=player_detailpage&v=dT7dGcsrPkQ]

 

The following is a repost of my comment four years ago on Easter morning. (Update: A few additions for more of the traditional hymns describing the blessings to us of the resurrection.)

 

He is risen! He is risen indeed!

This morning my wife and I attended a sunrise service. Haven’t done that for many years. A wonderful way to celebrate this day. On our way to celebrate with our church family momentarily.

 

 

 

I know that my Redeemer lives:

[youtube=https://www.youtube.com/watch?v=oR0E7gEeqBk]

 

Up from the grave He arose.

[youtube=https://www.youtube.com/watch?v=oN77HjfAc8k]

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Jim Ulvog

Tips for churches on how not to mess up your payroll taxes

Image courtesy of Adobe Stock.
Image courtesy of Adobe Stock.

Church Law & Tax, site for Richard Hammar’s writing on issues affecting churches, recently tweeted about their presentation of Five Common Payroll Issues Ministries Face Slideshow.

If you are in a church, or any parachurch ministry for that matter, it would be worth your time to read through the slide deck.

I’ll guess this is old news for most people. However, if you see something that you don’t understand or seems contrary to how you are doing things, you might want to take that as a warning you ought to do some research. I’ll mention just a few highlights.

Remember to report the following as income (see slides 8 and 9): (more…)

Jim Ulvog

Another scam to beware: phishing for W-2 info

Image courtesy of Adobe Stock.
Image courtesy of Adobe Stock.

Ok, so you know it is a scam if you get a call from “the IRS” saying you have to pay your tax bill right this instant because the local cops are on the way to arrest you.

If you get one of those calls, hang up. Don’t even talk.

Here’s the newest phishing scam now starting to hit charities.

Kelly Phillips Erb explains the new scheme: IRS Issues Urgent Alert as W-2 Phishing Scam Spreads During Tax Season.

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Jim Ulvog

In case you hadn’t hear, those telephone calls claiming to be from the IRS demanding you immediately pay back taxes are a scam.

Wouldn't it be nice if the phone id actually was that accurate for every call? Image courtesy of Adobe Stock.
Wouldn’t it be nice if the caller ID was actually that accurate for every call? Image courtesy of Adobe Stock.

The most frequent scam in 2016 was the phone calls saying “This is the IRS and if you don’t pay your past due taxes this instant we will send someone to your house to arrest you right now.”

There are many things wrong with those calls.

As a starter, your first contact with the IRS will never be by phone. You will instead get a letter explaining what the IRS thinks you messed up.

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Jim Ulvog

Postage rates changing 1/22/17

Image courtesy of Adobe Stock.
Image courtesy of Adobe Stock.

Postal rates will change again effective January 22, 2017.

Chronicle of Philanthropy reports New Postal Rates Will Boost Costs for Charities. Article says increase for charities will range from 2.8% up to 4.3%.

A significant change is that mail which was previously marked as “standard” will now be categorized and marked as “marketing mail.” That is a concern for an industry representative who said that may reduce the likelihood of recipients actually opening such items, which would obviously reduce the effectiveness of a mailing.

You can find the new rates at the USPS site: January 2017 Price Change.

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Jim Ulvog

Standard IRS mileage rates for 2017

Image courtesy of Adobe Stock.
Image courtesy of Adobe Stock.

The IRS announced the standard mileage rates for 2017 today. New rate for transportation and reimbursements is 53.5 cents. That is down from 54 cents in 2016.

According to IRS comments in Notice 2016-79:

The standard mileage rate for transportation or travel expenses is 53.5 cents per mile for all miles of business use (business standard mileage rate). See section 4 of Rev. Proc. 2010-51.

The standard mileage rate is 14 cents per mile for use of an automobile in rendering gratuitous services to a charitable organization under § 170. See section 5 of Rev. Proc. 2010-51.

The standard mileage rate is 17 cents per mile for use of an automobile (1) for medical care described in § 213, or (2) as part of a move for which the expenses are deductible under § 217.

Standard rates for the last few years:

Jim Ulvog

Contributions to ECFA members grew 2.2% in 2015, compared to 5.0% growth in 2014

Image courtesy of Adobe Stock.
Image courtesy of Adobe Stock.

ECFA has announced their 2016 State of Giving Report. Based on data from 1,816 member organizations, cash contributions in 2015 grew 2.2% year over year. Noncash giving grew by 7.5%.

Illustrating the diversity of the nonprofit community, the changes for 27 different sectors are listed separately. A few highlights for the 2015 and 2014 change:

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Jim Ulvog

Free resource explaining overtime rules

Image courtesy of Adobe Stock.
Image courtesy of Adobe Stock.

The Evangelical Council for Financial Accountability has published a concise, free resource explaining many of the rules of overtime, especially in the context of the charity world.

You can find it here and get a copy merely by giving them your email address. Not to worry – I don’t think they are going to overload you with spam – I’ve signed up for several things from them and the only emails I get are for free resources and invitations to webinars that are actually of interest. Oh, and news that is of interest to those of us in the charity world.

Oh, did I say it was free?

Jim Ulvog

What to do about the new overtime rules since they are on hold?

Image courtesy of Adobe Stock.
Image courtesy of Adobe Stock.

The new overtime rules were set to go into effect tomorrow, December 1. The rules are on hold as a result of an injunction issued by a federal judge. What should charities do about changes that have been implemented, or announced, or on the drawing board?

Two articles have some suggestions:

11/29 – Baltimore Business Journal – Plenty of questions still surround blocked overtime pay law – It is very uncertain how the new overtime rules will be handled. Article cites the CEO of an outsourcing and payroll company. His advice is stay tuned to developments. The rules could be implemented, overturned, or modified.

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Jim Ulvog

Overtime rules on hold after federal judge issues nationwide injunction

Image courtesy of Adobe Stock.
Image courtesy of Adobe Stock.

…places a hold on the new rules regarding…

Image courtesy of Adobe Stock.
Image courtesy of Adobe Stock.

 

A federal judge in Texas issued an injunction putting on hold the new Department of Labor rule increasing the threshold for paying overtime. The judge concluded there was a reasonable likelihood (I don’t quite appreciate the technical description so will use casual wording) that the lawsuit by 21 states and a lot of businesses would succeed. He also concluded the rule could cause irreparable financial harm. Thus, he issued the injunction, which applies nationwide.

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Jim Ulvog

More background on revision to nonprofit reporting

Image courtesy of Adobe Stock.
Image courtesy of Adobe Stock.

The new rules revising not-for-profit financial reporting are a significant change although they are not as dramatic as what we saw a long time ago with SFAS #116 and #117.

ASU 2016-14, Presentation of Financial Statements of Not-four-Profit Entities, was issued August 18, 2016. You can find the document here.

I will write a series of articles going into detail on the new rules. In the meantime, here are a few more articles providing background.

8/18 – AICPA – FASB’s standard Aims to Improve Not-for-Profit Financial Reporting – good overview of most changes

8/18 – Journal of Accountancy – FASB modifies not-for-profit accounting rules – High level overview. Article also provides some background on the process. Revision of GAAP to require operating measures is still under consideration but will be part of the next phase.

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Jim Ulvog

Time to get ready for filing those W-2s and 1099s – You have less time to file in 2017 and penalties are worse

Image courtesy of Adobe Stock.
Image courtesy of Adobe Stock.

Congress requires W-2s and W-3s be filed with the IRS and Social Security administration by January 31 starting with reports filed in 2017. Previously, the deadline for sending reports to the government was February 28 by paper and March 31 for electronic filing.

The same, accelerated deadline applies for 1099s which have non-employee comp reported in box 7.

You can see more details in an 11/4 article at Forbes: Compressed Deadlines and Higher Penalties for Forms 1099 and W-2.

Penalties

In addition to the deadline for filing getting accelerated, the penalties for dropping the ball in 2017 are getting more severe.

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Jim Ulvog