Nonprofits: Now is the Time to Muster Volunteer Resources
When the COVID-19 outbreak became a full-fledged pandemic earlier this year, many already stressed not-for-profit organizations panicked. After all, how could nonprofits meet their charitable goals if supporters were losing their jobs — or, worse, fighting for their own and their family members’ lives? Putting reduced donations aside, it seemed unlikely that even dedicated volunteers…
Beware: Several CARES Act Tax Provisions Will Soon Expire
The CARES Act granted several valuable federal tax breaks for individuals and businesses. But most will expire at the end of 2020 or at the end of tax years that begin in 2020. Here’s a roundup of tax breaks scheduled to go off the books soon, unless Congress extends them. For Individual Taxpayers Charitable donations. The Tax…
Creating a Tax-Advantaged ABLE Account for a Loved One with a Disability
The Achieving a Better Life Experience (ABLE) Act of 2014 allows states to set up ABLE account programs, which are similar to state-run Section 529 college savings programs. That is, you can establish a tax-favored ABLE account to cover qualified disability expenses of a family member or loved one who’s named as the designated account beneficiary….
Keep Employees Safe From COVID-19 Without Discrimination
How can an employer keep its workforce safe from COVID-19 exposure on the job, while still following medical privacy rules? The Equal Employment Opportunity Commission (EEOC) may be able to help, as it reviews how COVID-19 workplace issues intersect with recommendations from the Centers for Disease Control (CDC) and with various laws. The relevant laws include…
Goodwill: Personal or Business — and Why Does It Matter?
You can’t touch goodwill, but it’s one of the most valuable assets for many businesses. Commonly associated with professional service firms, goodwill can also exist among manufacturers, retailers, contractors and other types of businesses. Valuing intangible assets, including goodwill, requires the use of a business valuation professional to get it done right. Different Types of…
Be Careful to Document Hardship Distributions and Plan Loans
The IRS cautions plan administrators that they must document and keep necessary records of all employees’ hardship distributions and plan loans. The result of noncompliance could be a qualification failure for the plan. Hardship Distributions Basic information. In general, a retirement plan can make a hardship distribution only: If the plan permits such distributions; and…
Be on High Alert for Ransomware Attacks
The FBI has warned of a staggering increase in ransomware attacks against nonprofits and businesses since the start of the COVID-19 pandemic. Here’s what leaders should know about these attacks to help prevent them — and manage an attack if preventive measures fall short. Cybercrime Crisis Cybercrime reports to the FBI have quadrupled in 2020….
Should Your Nonprofit Adopt Remote Work Permanently?
If your not-for-profit’s staffers can work from home during the COVID-19 pandemic, they probably are. But what about when the crisis ends? As workers have become accustomed to remote work, many now prefer it. In fact, several recent surveys have found that approximately half of U.S. employees would rather work from home. This is particularly…
How to Nudge Employees in an Ethical Direction
Nonprofits and businesses victimized by occupational fraud can experience significant financial losses, bad PR and reduced employee morale. Therefore, you must use every tool at your disposal to prevent and detect criminal activity in your organization. This starts with robust internal controls, including a confidential reporting hotline or other reporting mechanism. And, if it becomes…
How to Save Taxes in 2020 and Beyond
Gaming the Standard Deduction The Tax Cuts and Jobs Act (TCJA) almost doubled the standard deduction amounts. For 2020, the standard deduction allowances are: $12,400 for single people and married couples who file separate returns, $18,650 for people who use the head-of-household filing status, and $24,800 for married couples who file joint tax returns. If…
