The Tax Cuts & Jobs Act, signed into law by the President on December 22, 2017. This resource hightlights how the new federal tax law affects charitable nonprofits will be updated as additional information and guidance becomes available. (National Council of Nonprofits)
Every nonprofit board member is legally responsible for the financial oversight of the organization he or she serves. BoardSource's Welcome to Your Key Financial Statements: A Primer for Nonprofit Board Members guide for boards of directors introduces the two most important financial documents - the balance sheet and income statement - that help board members meet their fiduciary responsibilities.
David Heinen, Vice President for Public Policy and Advocacy, North Carolina Center for Nonprofits
On December 22, 2017, President Donald Trump signed into law a tax reform plan (H.R. 1) that cuts individual and corporate income tax rates and makes a variety of other changes to the Internal Revenue Code. Several parts of the tax plan affect the work of nonprofits.
Standard Mileage Rates (en español) posted by the IRS each year summarize "the optional standard mileage rates for employees, self-employed individuals, or other taxpayers to use in computing the deductible costs of operating an automobile for business, charitable, medical, or moving expense purposes."
Jay Wilkinson, Firespring
No doubt you’ve heard about this, and like many good nonprofit leaders, have done your best to refute it.
It’s dubbed a myth for good reason. Yet most nonprofits feel pressured to do as much as possible with as little as possible when it comes to running their organization. The Overhead Myth still exists, and donors still scrutinize nonprofits, wondering what percentage of their gift actually goes toward the “cause.” As if dollars that support infrastructure don’t also support the mission.
Independent Contractor or Employee? - For federal tax purposes, there is an important distinction between employee and independent contractor. Worker classification affects how you pay your federal income tax, social security and Medicare taxes, and how you file your tax return. Classification affects your eligibility for social security and Medicare benefits, employer provided benefits and your tax responsibilities. If you aren’t sure of your work status, this brochure can help you determine it.
The federal overtime provisions are contained in the Fair Labor Standards Act (FLSA). Unless exempt, employees covered by the Act must receive overtime pay for hours worked over 40 in a workweek at a rate not less than time and one-half their regular rates of pay. There is no limit in the Act on the number of hours employees aged 16 and older may work in any workweek. The Act does not require overtime pay for work on Saturdays, Sundays, holidays, or regular days of rest, unless overtime is worked on such days.
The OMB Uniform Guidance establishes important rights for nonprofits: "Governments at all levels – local, state, and federal – that hire nonprofits to deliver services are now required to reimburse nonprofits for the reasonable indirect costs (sometimes called “overhead” or “administrative” costs) they incur on behalf of governments when federal dollars are part of the funding stream. The new mandate is embedded in grantmaking rules that the federal Office of Management and Budget (OMB) put into effect at the end of 2014.
Under current law, charitable nonprofits in North Carolina pay sales and use tax on their purchases and can apply for semi-annual refunds of the taxes they pay. A system of sales tax exemption would save nonprofits time and reduce administrative burdens. Bipartisan bills in both the House (H.B. 882) and Senate (S.397) would replace the nonprofit sales tax refund system with sales tax exemption for most 501(c)(3) nonprofits.
This guide offers clarification on how the FLSA generally, and the white collar exemptions specifically, apply to the nonprofit sector. (U.S. Department of Labor)
See also: Breaking down your nonprofit's obligation to pay overtime by National Council of Nonprofits