#nonprofit
Nonprofit accounting, fund tracking, and compliance
Nonprofit directors carry three legal fiduciary duties — care, loyalty, and obedience — and courts have held boards personally liable for failing to ask basic questions about how the organization spent its money.
Treasury and the IRS are restructuring Form 990 to require source-by-source government grant reporting and project-by-project fiscal sponsorship disclosure, aimed at detecting fraud in the tax-exempt sector.
Treasury proposes granular Form 990 disclosure of government grants and fiscal sponsorships — with structured data and automated review. Build the grant register and project ledger now.
A practical guide to nonprofit grant accounting under ASC 958 and the 2024 OMB Uniform Guidance updates — net asset classification, the conditional-versus-unconditional barrier test, cost-reimbursement revenue recognition, the new 15% de minimis indirect cost rate, and the $1 million Single Audit threshold.
Section 501(c)(7) social clubs must keep nonmember income under 35% of gross receipts and nonmember facility use under 15%, while Section 277 quarantines member-side losses for nonexempt membership organizations. This guide walks through how the two rules interact, how to allocate UBTI expenses on Form 990-T, and how to structure a chart of accounts so the member/nonmember split survives an IRS examination.
A practical guide for HOA boards, treasurers, and small-firm CPAs on the Section 528 election, the four Form 1120-H eligibility tests, the 30% flat rate trade-off versus Form 1120, and why every association should record an annual Revenue Ruling 70-604 vote.
Section 107 lets ordained ministers exclude designated housing costs from federal income tax, but the allowance is still added back for SECA and only an in-advance written designation survives audit. A practical guide to the three-part cap, Form 4361's irrevocable opt-out, and the 403(b) designation that keeps a retired pastor's distribution income-tax-free for life.
Starting in 2026, taxpayers who take the standard deduction can deduct up to $1,000 ($2,000 for joint filers) of cash gifts to qualified public charities under new IRC Section 170(p) — cash only, no donor-advised funds, no carryforward, and the same $250 documentation rules as itemizers.
Section 45W ended for vehicles acquired after September 30, 2025, but businesses with a binding contract and a payment by that date can still claim up to $7,500 for light EVs or $40,000 for heavy trucks in 2026 — here is how the credit is calculated, filed on Form 8936, and refunded as cash to tax-exempt fleets through elective pay.
How Section 514 of the Internal Revenue Code taxes leveraged investments held by 501(c)(3) organizations, private foundations, and self-directed IRAs — including the debt/basis percentage calculation, Form 990-T mechanics, the 12-month look-back on sale, and the Section 514(c)(9) real estate exception for schools and pension trusts.
IRS Memorandum AM 2023-004 holds that most nonprofit NIL collectives fail the 501(c)(3) operational test because compensating student-athletes is substantial private benefit, not charitable activity — meaning donor contributions are often not deductible.
A practical guide to splitting nonprofit costs across program, management, and fundraising — covering ASU 2016-14 requirements, Form 990 Part IX, time studies, square-footage methods, the three-test joint cost rule, and the written cost allocation plan auditors expect to see.
