Wednesday, September 29, 2010

IRS Focus for 2010 - Employment Tax & Charitable Spending - BKD Insights

Beginning in 2010, the IRS Exempt Organizations (EO) Division is focusing on two key areas: employment tax and charitable spending. Employment tax has recently been a focal point for the IRS. Exempt organizations have the same payroll obligations as for-profit businesses, such as proper classification of workers and the reporting and payment of employment taxes.

For the next three years, the IRS will analyze data from audits of 500 randomly selected exempt organizations to determine whether they properly comply with employment tax law and reporting requirements, specifically focusing on worker classification, fringe benefits, officer compensation, employee expense reimbursement and non-filers. The IRS has indicated that many of these exams have already started.

The second IRS EO initiative examines charitable funding sources and their relationship to the accomplishment of charitable purposes. The study will look at revenue sources, particularly fundraising, public contributions, grants and revenues from related or unrelated trades or businesses, as well as unrelated business income expenses, officer compensation, fundraising expenses, program service activity spending and the effect of these expenditures on charitable spending.

Read the full article.

Questions? Contact Debi L. Ladyman, CPA, Partner at 317.383.4072 or or Joe Vande Bosche, CPA, Partner at 317.383.4039 or .

Thursday, September 23, 2010

The Day We First Met

- - September 2010 -
Reprinted from Contributions Magazine

Working with volunteers is a lot like dating (in the traditional sense). I say traditional because I hear from my friends that dating in the 21st century is much different with online, texting, tweeting, and such. It's been 18 years since I was on the mission to get the guy, but I remember it like it was yesterday. The parallels between recruiting and retaining volunteer leaders and dating are strangely similar.

The Prospect. When you're single, there are two ways to meet Mr. or Ms. Right: a chance encounter where you are both in the right place at the right time (he or she walks through the door and you just know). Or, more likely, it takes some effort; you put yourself out there to increase your chances of meeting your soul mate...

The Courtship. Once you've identified the prospect, you try to learn as much as you can to see if it's a good fit. You spend time talking and learning about what they enjoy as well as their pet peeves. You observe their strengths and weaknesses...

The Marriage. After investing time and energy into the relationship and determining it's a good match, you're ready to make the leap. Marriage is a big deal. It's a commitment to stick together through good and bad, and strive to better one other...

Now What? It takes work to keep the spark going in a relationship. After a while, it's easy to take it for granted, or just become complacent. But relationships that continue to thrive require nurturing...

Read the full article here.

Tuesday, September 14, 2010

IRS Offers Relief for Small Charities


On July 26, 2010, the IRS announced a one-time special filing relief program for small tax-exempt organizations that may be at risk of losing their tax-exempt status because they failed to file required returns.

Background - Prior to the enactment of the Pension Protection Act of 2006 (PPA), tax-exempt organizations with gross receipts of $25,000 or less were not required to submit information returns. The PPA requires small tax-exempt organizations not previously required to file Form 990 or 990-EZ to submit a new annual notice. Form 990-N was created to enable organizations to meet this requirement.

The new filing requirement does not apply to organizations specifically excluded from filing Form 990, including churches, church-related
organizations, governmental entities and affiliates of governmental units.

>>Read the full article here.

Questions? Contact Debi L. Ladyman, CPA, Partner at 317.383.4072 or or Joe Vande Bosche, CPA, Partner at 317.383.4039 or .

Tuesday, September 7, 2010

Back to School – For Kids and Boards

September and January are the two times each year that we most frequently see board and staff leaders renewing efforts to bring new members on board, orient all board members about their roles, and get everyone headed in the same direction. On one board where I serve, we realized that many of our board members have trickled in over the past year and haven’t gotten enough attention or information about what the organization needs from them or been given the chance to share what they would really like to do to help.

With that backdrop, we shamelessly plug our board development materials a couple times each year with some special offers, good through the end of September 2010. In the case of our booklets and training CD, the material is not revolutionary or profound but it is presented in an inexpensive summary format and layperson’s terms so that it gets past the common barriers of busy schedules and intimidating expectations. We have sold more than 25,000 copies of our little booklets - across all 50 states. We hope your organization can take advantage of one or all of these special offers.

SPECIAL #1 – SAVE $55 - we are again offering the $55 Training CD of PowerPoint presentations w/Facilitator Guide FREE with a $100 or larger purchase of booklets – Welcome to the Board, Finance for Every Board Member, Fund Raising for Every Board Member, and Planning for Every Board Member. We will include it automatically when you place your order at:

Special #2 – SAVE $75 - If it is time for some candid reflection and discussion about how your board is working and how you can get stronger, we are offering the $75 Sample Pak and Training CD w/Facilitator Guide FREE with the purchase of our on-line Board Self-Assessment. Feel free to contact Bryan at 317-752-7153 or with questions.

Special #3 – SAVE $39 - We have been fortunate to get to know Henry Freeman, a fund raising master, over the years and are very excited that he captured the lessons he has learned on video for all of us to learn. His introductory 35 minute video “The Nonprofit Board’s Guide to Successful Fund Raising” gives Board members an overview of how fund raising works in nonprofits and their critical role. It normally costs $39 plus S&H, but we will ship two copies when you order one (sorry, no Ginsu knives J).

Special #4 – SAVE $55 - Finally, Henry Freeman has also created a video reference library of fund development wisdom for every organization, who is serious about developing philanthropic relationships, to use regularly. This library includes two insightful seminars plus fifty 3-10 minute focused teachings on a wide variety of techniques that Henry says have each raised thousands if not millions of dollars. This set sells for $249 plus S&H. Henry has just developed a $55 companion binder that we will include FREE this month that makes it a snap to teach and learn, with or without the video, at staff and board meetings. 

Bryan Orander, President
Charitable Advisors and Not-for-Profit News