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Articles – JRHaeck
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Articles

Not-For-Profit Governance, Tax Compliance, and Critiques
20 Oct

Travel Tour Program

By admin Articles, Not For Profit, Tax Compliance 0

Situation:                    A Basic College (ABC) provides a traditional college education program for its students.  ABC operates as a Section 501(c)(3) organization exempt from income tax.  Its purpose is to provide an education program to young adults in order to qualify program graduates to obtain careers in industry sectors for which a college degree is required. ABC also provides a travel program to students and faculty which is also made available to the general public. 

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19 Oct

A “Related Organization” Land Mine

By admin Tax Compliance 0

Situation:        A 5-member Board of Directors governs the Tragic Victims Relief Organization (TVRO).  The Bullied and Abused Responders Enterprise (BARE) appoints two of TVRO’s directors, while a 60% owned for-profit subsidiary of BARE, the Psychological Bandage Corporation (PBC), appoints a 3rd member of TVRO’s Board.  The remaining two members of TVRO’s Board are appointed by a majority vote of TVRO’s most recent Board.  Both TVRO and BARE are 501(c)(3) charitable organizations. Dilemma:        TVRO’s Executive Director,

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02 Mar

Am I An Independent Director?

By admin Articles, Case Studies, Not For Profit, Tax Compliance 0

Situation:                    O. Sue Generous (O Sue) sits on the Board of Colorado Debtors Anonymous (CDA), a 501(c)(3) organization.  Just prior to CDA’s fiscal year-end, O Sue took an advance of $1,000 to help cover travel expenses for attendance at the annual convention of National Debtors Anonymous, an association of various state “Debtors Anonymous” organizations.  O Sue attended the convention on behalf of Debtors Anonymous and shortly after fiscal year-end, properly filed an expense report

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02 Feb

False Alarm: IRS Ditches Expansion of the $250 Substantiation Documentation Requirement

By admin Articles, News, Not For Profit 0

The Internal Revenue Code requires that deductible donations to charitable organizations must be substantiated with a contemporaneous written acknowledgment (CWA) of the contribution by the donee organization. The CWA must follow a prescribed format. However, the Code also says that the Secretary shall prescribe such regulations as may be necessary or appropriate to carry out the purposes of the CWA requirement. Normally, one would think that when a contribution of $250 or more was made,

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11 Nov

A Manager’s Potential Participation in an Excess Benefit Transaction

By admin Articles, Case Studies, Not For Profit, Tax Compliance 0

Situation:                    I. M. Boss, the Executive Director of A Good Show, a 501(c)(3) organization, receives a total compensation package of $300,000.  The HR Director reported to the Executive Committee the results of his survey, indicating that for comparably sized organizations, Executive Director compensation packages ranged from $150,000 to $225,000.  Given the particularly vulnerable position in which the Board and organization found itself (the start of a significant building campaign), the Executive Committee decided that

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09 Sep

Mission Statement Development

By admin Articles, Governance, Not For Profit 0

THE DEVELOPMENT OF AN ORGANIZATION’S MISSION STATEMENT The mission and culture of an organization defines its character and personality. They embody what an organization is all about. These concepts shelter and nurture its reason for existence. So, what is an organization’s mission? What is its character or culture? Do these things develop by themselves? What role does a Board play in the development and preservation of mission and culture? Mission The mission of an organization,

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10 Aug

Teamwork and Constructive Tension

By admin Articles, Governance, Not For Profit 0

Behind every well-executed charitable or civic-minded mission froths a simmering cauldron of a team whose members wrestle between themselves with how to deliver the most good to the most people, most efficiently and most effectively. The picture of team interaction seldom competes for good looks. In fact, effective teams often display a chaotic mass of thoughts and concepts, wrong turns, strained interpersonal relations, compromised ideals, and bungled assignments. They are made up of humans, none

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15 Jul

CFO Reporting to a Not-for-Profit Board of Directors

By admin Articles, Governance, Not For Profit 0

Most Not-for-Profit boards of directors don’t really know what to expect from the organization’s Chief Financial Officer (CFO) when he/she reports.  Most CFOs report a rather vanilla version of the not-for-profit (NFP) organization’s latest financial statements, as produced by the organization’s accounting software.  Most could do much better! These comments and suggestions represent a truly 3rd party perspective, quite possibly insensitive to what individual boards and not-for-profit organizations would most appreciate.  Nevertheless, consider the following

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10 Jun

Success and Giving

By admin Articles, Editorials, Not For Profit 0

Why would anyone want to, or concede to, serving on a board of directors for a not-for-profit organization?  The pay is lousy.  The thanks and recognition is muted.  The aggravation can be grating and painful.  The need to compromise, in an arena where one’s values form the basis for service, can be excruciatingly stomach-churning.  The requirements to loosen one’s wallet and sacrifice scarcely available time can be disconcerting.  Is there any upside? Not-for-profit board service,

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16 May

Do I Have a Sibling?

By admin Articles, Case Studies, Not For Profit, Tax Compliance 0

Situation:                    Gentle Persuasion, Inc. (GentleP) and HammerItHome Foundation (Hammer) are 501(c)(3) charitable organizations with no overlapping boards of directors.  Nevertheless, each has taken a particular interest in two other organizations called Goodness Gracious Community Center (GGCC) and Independent Thinker (Thinker).  In addition, GentleP and Hammer each appoint 3 directors to each of GGCC’s and Thinker’s 9-person boards. Dilemma:                    Thinker’s controller is completing its Form 990, Return of Organization Exempt from Income Tax.  Form 990,

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