You Can’t Have Your Cake and Take a Deduction For it Too

Posted by Saaib Uppal Who came up with the proverb, “You can’t have your cake and eat it too?” While history doesn’t give a definitive answer, we can start by checking the archives of the Internal Revenue Code. Why, you ask? Well, I was recently asked if someone could deduct a charitable contribution for donating the right to use their personal vacation home for 1 … Continued

Quid Pro Quo Donations

Posted by Chris Ciminera It is customary for nonprofit organizations to occasionally hold an event to raise funds to further its mission or for other charitable purposes. I know specifically that one of our clients, a church organization, holds a fundraiser each year in which all proceeds from the event benefit charitable organizations throughout the community. I received a specific … Continued

Know the Right Way to Report Donations of Services

Posted by Jonathan D. Moll, CPA Donations of services can be useful to your organization during tough economic times. But should you record them in your financial statements? And, if so, what amounts should you assign? FASB Accounting Standards Codification (ASC) 958, Not-for-Profit Entities, specifies when a nonprofit should recognize the fair value of services in its financial statements. There are two … Continued

The Risk of Not Honoring Donor Restrictions

Posted by Jonathan D. Moll, CPA If you’re a nonprofit organization that receives donor-restricted contributions, you might want to think twice about spending those restricted funds for purposes other than what the donor stipulated. An Oklahoma hospital that failed to build a women’s health center in honor of country singer Garth Brooks’ late mother must pay the country singer $1 … Continued

We Received a 2012 Contribution…or Did We?

Posted by Larry Gentile If you are one of the many organizations that are qualified by the IRS to receive deductible charitable contributions, then the months of December and January can be a tricky time of year – even more so if you have a December 31st year end. Deciding exactly when an organization should record contribution revenue, and when … Continued

Minister Housing Allowance Allowed…Or Is It?

Posted by Christina K. Bell This past Sunday while reading my church bulletin, I was intrigued by an article that discussed how a Wisconsin-based Freedom from Religion Foundation had filed a suit to challenge the constitutionality of a tax deduction that clergy are allowed to claim on their housing expenses. The deduction, or housing allowance amount, may be excludable from … Continued