Category: Not-for-Profits

PDF: CBM Partner Julia Lafferty Elected to the Greater Washington Society of CPAs Executive Committee Julia Lafferty, CPA, a partner at Councilor, Buchanan & Mitchell and a director of the firm’s not-for-profit and employee benefit plan services groups, has been elected to the executive committee of the Greater Washington Society of CPAs (GWSCPA) effective July 1, 2022. This five-year commitment will incorporate several progressive leadership roles including annual service as secretary, treasurer, vice president/president-elect, president and immediate past president. During… Read more ›

Revenue generated by 501(c)(3) organizations is generally exempt from federal income tax. But in some cases, your not-for-profit may incur unrelated business income tax (UBIT) on revenue. The good news is your annual tax return may offer some relief in the form of deductions. The list isn’t as long as the “ordinary and necessary business expenses” for-profit entities can deduct, but here are six common nonprofit deductions to know about: 1. Wages. Just as for-profit businesses, your nonprofit can deduct… Read more ›

Is your organization prepared for a crisis that could threaten its survival? It could be anything from a devastating economic downturn, to a domestic abuse or sexual harassment scandal involving a high-ranking official, to a natural disaster that destroys your main offices. Regardless of the nature and extent of the crisis, prompt action is required. First things first: Don’t panic. Second, this is the time for not-for-profit management, including the board of directors, to step up and provide leadership. The… Read more ›

You know the drill: It’s midnight and your grant proposal is due tomorrow. Your assistant left hours ago and the words on your screen have started to blur. “It’s not worth it,” you think. And besides, only a few grants pan out anyway, right? Not necessarily. Grants are a big part of the not-for-profit world. And yet, according to Dennis P. McIlnay’s book, How Foundations Work, less than 10% of grant proposals are ever funded. That’s probably why grant writing… Read more ›

The 403(b) plan is often thought of as a 401(k) plan for nonprofits. It’s probably not the only option for your not-for-profit, but it can provide certain advantages over 401(k)s. Following is a brief rundown. Generous Contribution Limits A 403(b) plan is a tax-favored qualified retirement plan set up for employees of not-for-profit organizations, including charities, hospitals, schools and government entities. As with other qualified plans, pre-tax contributions grow tax-free until withdrawals are made. Normally, employee contributions are deducted from… Read more ›

Mikki Obreja, senior tax manager at CBM, has been quoted in a white paper by CrossTower, a cryptocurrency exchange entitled “Cryptocurrency Donations”. Mikki addresses the impact on a donor’s long-term capital gains rate after the sale of bitcoin based on the donor’s taxable income and filing status. Click here to read the white paper. Councilor, Buchanan & Mitchell (CBM) is a professional services firm delivering tax, accounting and business advisory expertise throughout the Mid-Atlantic region from offices in Bethesda, MD and Washington, DC.  

Q. If you itemize deductions on your tax return, which one of the following can you claim a charitable deduction for? a. The value of blood donated to a blood bank b. Money given to the Boy Scouts or Girl Scouts c. The value of your time or services volunteering at a charity d. Money you must pay to a homeowners’ association The answer is b Generally, you can only deduct contributions of money or property you make to a… Read more ›

Is your not-for-profit the same organization it was three years ago? Are your stakeholders the same now as then? What about your community and its support? It’s been said that the only thing certain in life is change, so you likely answered “no” to each of these questions. Change is a key reason why your nonprofit needs to revisit and revise its strategic plan regularly. And you can make your strategic planning process as dynamic as change itself. But it… Read more ›

  If your not-for-profit organization operates on a calendar-year tax basis, the deadline for filing your 2021 Form 990 (Form 990 EZ for certain small organizations) is right around the corner — May 15, 2022. Besides filing on time, you must ensure the information provided on your form is accurate. Pay particular attention to the following eight issues that commonly trip up nonprofits: 1. Unrelated business income tax (UBIT). If your not-for-profit regularly engages in activities that generate profits, for… Read more ›

  Suppose the founder or long-time executive director of your not-for-profit organization is scaling back on her workload and making plans to retire. What will her departure mean for your organization? If your nonprofit has a well-crafted succession plan, it’s likely to survive any leadership transition. But if you don’t have a plan, your organization could endure a rocky period, and possibly close. Even if your top leader intends to remain in the job for years, illness or another unanticipated… Read more ›