|
Hello and welcome to our first issue of Nonprofit Agendas e-newsletter.
In this issue, we cover the importance of getting financing in today's economy, expense reimbursements not taxable in accountable plans, board-staff harmony, and new M & A standards.
We encourage you to contact Hood & Strong LLP for help or advice in any of these areas to keep your non-profit strong and successful.
Your comments on the
e-newsletter format are welcome and encouraged, please direct them to notforprofitgroup@
hoodstrong.com
Sincerely,
NFP Niche Partners
Kathy Grogan
Lynn Henley
Susan Malone
Mollie Marshall
Stephen Piuma
Robert Raffo
www.hoodstrong.com
|
|
|
Getting financing in today’s economy
 Nonprofit organizations, large and small, often consider borrowing money only as a last resort. But there are certain times when going to the bank is the right answer. This article discusses the steps necessary to prepare a loan application, and discusses the different kinds of loans available (line of credit, term loan, and tax-exempt bond) and the circumstances in which each may be most appropriate. A sidebar lists three bond options made available under the American Recovery and Reinvestment Act of 2009 that allows nonprofits to access more attractive and cost-beneficial tax-exempt financing through 2010.
Full Article
Being “accountable” — Certain expense reimbursements not taxable in accountable plans
 Certain expense reimbursements and allowances aren’t viewed by the IRS as taxable income to the employee if they’re made under an accountable plan. In turn, if these amounts aren’t taxable income to the employee, they’re not subject to the employer portion of FICA taxes either. But there are four requirements for this type of plan: The expenses must have a business connection; they must be reasonable; there must be reasonable accounting for the expenses; and all excess reimbursements must be repaid in a reasonable time.
Full Article
Board-staff harmony
 Two planes flying in the same airspace need instruction from the tower to make sure they don’t collide. Likewise, a nonprofit needs to give direction to its board (and staff) — about “who does what” — to ensure that both reach their goals without distress. This can be especially important in a small organization. To avoid a collision, it’s important to make sure that board members receive a thorough orientation, work through the executive director when making requests of employees, and interact regularly with staff.
Full Article
News for Nonprofits — NEW M&A ACCOUNTING STANDARD KICKS IN
 This issue’s “News for Nonprofits” looks at Statement of Financial Accounting Standards (SFAS) No. 164, Not-for-Profit Entities: Mergers and Acquisitions, which offers guidance on merger and acquisition accounting and disclosures specifically for nonprofits, while also addressing the treatment of goodwill. Also mentioned in this issue are two surveys detailing executive compensation at not-for-profit organizations.
Full Article
This publication is distributed with the understanding that the author, publisher and distributor are not rendering legal, accounting or other profes sional advice or opinions on specific facts or matters, and, accordingly, assume no liability whatsoever in connection with its use. ©2010 NPAfm10
|