Category: Not-for-Profits

Closing the books after year-end can be more complicated for a nonprofit than for a for-profit entity, with assurance needed not only for accurate financial reporting but also for compliance with donor, grant, and regulatory requirements. While most of the financial activities nonprofit organizations should undertake are the same as those taken at the end of every month, an extra layer of review should start well before Dec. 31 to avoid a fire drill in January. Before diving into the… Read more ›

While early drafts of the One Big Beautiful Bill Act (OBBBA) raised fears of sweeping tax burdens for nonprofits, the final version (as of this writing) softens some of the harshest proposals but still creates significant changes that tax-exempt organizations should understand. Here are the most relevant provisions. Excise Tax on Salaries Over $1 Million The new law expands the 21% excise tax on compensation of more than $1 million to cover all employees of tax-exempt organizations, not just the… Read more ›

On May 6, 2025, Maryland Governor Maryland Wes Moore signed into law the Tax Relief and State Personnel Equality for Service Members Act (S.B. 0278). The legislation introduces provisions aimed at expanding service member tax benefits and deductions for more service members and their families. Standardization of Definitions Senate Bill 278 sets forth definitions as set in the U.S. Code. Terms such as “active service member,” “uniformed services,” and “reserve component,” are broadened to include members of the National Oceanic… Read more ›

Today’s spend management tools eliminate the headache of expense reports and chasing credit card transactions by offering real-time visibility into spending. Tracking and predicting spending has become increasingly complex for nonprofits and small businesses, especially with the rise of remote work, international travel, growing supplier networks, and out-of-date processes. Economic uncertainty and tight budgets are driving executives to seek greater visibility and control. According to a survey by CPA.com, the business and technology arm of the AICPA, 72% of small… Read more ›

The Trump administration, the day after directing agencies to implement a temporary freeze on federal financial assistance, has rescinded its order, which sparked consternation and confusion throughout the nonprofit community. The pause on federal grants and loans, which would have also impacted states, schools and hospitals, was set to start at 5 p.m., Tuesday, Jan. 28. A federal judge temporarily blocked the order just before it was to go into effect and the White House reversed itself and rescinded it… Read more ›

A Trump administration order to freeze as much as $3 trillion in federal financial assistance was temporarily blocked just before it was set to go into effect, yet the notice has caused widespread worry and confusion among nonprofits, states, schools and hospitals. The order called for a pause in federal funding for a sweeping range of programs, projects and activities that may be impacted by the blizzard of executive orders issued in the first days after President Trump’s inauguration. The… Read more ›

A private foundation generally pays a 1.39% excise tax each year on net investment income when filing its annual Form 990-PF. Since this is not a large tax, most small private foundations don’t spend much time (if any) on tax planning.  While the excise tax rate on net investment income is not substantial, below are some tax planning tips your private foundation may want to utilize. Net Capital Loss – What you need to know On Form 990-PF, net capital… Read more ›

As the presidential election approaches, CBM would like to take this opportunity to go over the basic rules that govern 501(c)(3) organizations (“charitable organizations”) pertaining to political activities. To put it simply, the Internal Revenue Code absolutely prohibits all 501(c)(3) organizations from directly or indirectly participating in, or intervening in, any political campaign on behalf of (or in opposition to) any candidate for elective public office. Violating this prohibition could lead to the loss of tax-exempt status and the imposition… Read more ›

On April 4, the Biden Administration announced the most significant revisions to the Uniform Guidance for Federal Financial Assistance (Section 2 C.F.R.200) since passage of the legislation 10 years ago. The primary goals of the revisions are to streamline compliance requirements, remove overly burdensome aspects of the application and grants administration process, clarify vague and too complex language, and improve access to funding for underrepresented communities and groups including tribal nations. The federal government annually disburses $1.2 trillion across a… Read more ›

The U.S. Department of Labor’s (DOL’s) test for determining whether a worker should be classified as an independent contractor or an employee for purposes of the federal Fair Labor Standards Act (FLSA) has been revised several times over the past decade. Now, the DOL is implementing a new final rule rescinding the employer-friendly test that was developed under the Trump administration. The new, more employee-friendly rule takes effect March 11, 2024. Role of the New Final Rule Even though the DOL’s final… Read more ›