Much of the Inflation Reduction Act signed into law in late 2022 contains provisions intended to combat climate change, largely through tax incentives. Such tax breaks aren’t usually relevant to the work of nonprofits. But for organizations constructing new facilities or adding improvements, the Act’s changes to one tax deduction could benefit them. This article reviews the benefits available under the Act. In addition, a short sidebar covers how the Act allows eligible organizations to receive certain tax credits — which otherwise would be of little use to nonprofits that pay no income tax — as direct payments from the IRS.
Continue reading How an energy-efficient building tax deduction could pay off for nonprofits →
The availability of Employee Retention Credits (ERCs) during the height of the COVID-19 pandemic — particularly the ability to claim advance payments of the credits — played a critical role in keeping many nonprofits afloat. Now, however, the IRS has begun to subject some employers that claimed ERCs to audits. Given the extended five-year statute of limitations for such audits, nonprofits that claimed the credits need to prepare. This article highlights what nonprofits should do to prepare for a possible ERC audit.
Continue reading Be prepared for IRS audits of COVID-19 ERC claims →
Recruiting and retaining committed board members is a never-ending process. For many nonprofits, determining an appropriate-sized board takes time. Although state law typically sets the minimum number of directors a nonprofit must have on its board, it’s up to each organization to determine how many board members it needs. Both small and large boards come with perks and drawbacks — and once the board size meets its state requirement, the article reviews what nonprofits should consider.
Continue reading What’s the magic number? — Some guidelines for determining your board’s size →
This issue’s Newsbytes summarizes a study that finds nonprofit employment has returned to pre-Covid-19 levels, highlights a report finding professional fundraisers plan to leave their current employers within two years, and looks at a free comprehensive tool nonprofits can use to analyze their technology practices and procedures.
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