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Schedule A: The Key to Maintaining Public Charity Status

July 28, 2014 Many public charities have to pass an annual public support test in order to maintain public charity status and avoid being classified as a private foundation. Certain types of organizations are exempted from this test.

Construction National Outlook – July 2014

July 14, 2014 After dropping off significantly in January and February, construction activity in March and April showed strong rebounds in both residential and nonresidential construction categories.

What’s It Cost? – July 2014

July 14, 2014 Steadily improving construction markets, better global economic conditions and rising energy costs resulting from a colder winter contributed to steeper increases in construction prices during the winter and spring of 2014.

Got Compensation Program Risk?

July 10, 2014 All the Form 990 boxes say compensation is IRS compliant...has anyone checked?

California Manufacturing Exemption

July 02, 2014 Manufacturing exemption goes into effect for reduced sales and use tax in California beginning July 1, 2014.

Rhode Island State Tax Updates

July 02, 2014 On June 19, 2014, Rhode Island Governor Lincoln Chafee signed into law H.B. 7133, the budget bill for the fiscal year ending June 30, 2015, which implements combined reporting, single sales factor apportionment, and market-based sourcing of receipts from the sales of services.

Alternative Fundraising

June 30, 2014 Alternative funding sources may be able to play a role in adding to the bottom-line at your organization.

NCUA Region 2 Allowance for Loan Loss – Follow Up

June 26, 2014

Pennsylvania Enacts Legislation Which Limits the Authority of Localities

June 05, 2014 On May 6, 2014, Pennsylvania Governor Tom Corbett signed into law H.B. 1513, Regular Session 2013-2014 (“H.B. 1513”), which limits the authority of Pennsylvania localities to impose privilege taxes and reduces the potential for double taxation of receipts.

Fraud Report Roils Not-For-Profit Sector

June 03, 2014 It's not surprising that fraud and embezzlement are a major concern for employers around the country. After all, you likely read news articles about it on a periodic basis. But a recent investigative report by the Washington Post about fraud inside not-for-profit organizations has raised some eyebrows.

OSHA Proposes Public Disclosure of Workplace Injuries

May 29, 2014 As a means for improving safety and reducing workplace injuries, the Occupational Safety and Health Administration (OSHA) recently proposed a change that would require manufacturing firms, among others, to make public information about injuries and illnesses.

Section 179 Deductions: Tread Carefully in 2014

May 25, 2014 Normally, a manufacturing firm can buy business equipment safe in the knowledge that it will qualify for an immediate write-off on most, if not all, of the cost under Section 179 of the tax code. But this year is different from others. The maximum Section 179 deduction for 2014 is set at $25,000.

Appealing to the Millennials

May 21, 2014 Finding new donors and volunteers is a challenge facing almost all non-profit organizations on an annual basis.

Do You Use a Suggestion Box?

May 02, 2014 It is an excellent idea to solicit feedback and suggestions from your employees across all levels of the organization.

NCUA Region 2 Allowance for Loan Loss Approach

April 30, 2014 During a recent conversation with a NCUA examiner, I was informed that the examination approach required by Region 2 for its examiners will be different than the approach used by the same examiners when they were performing examinations in Region 3.

New York State Tax Updates

April 22, 2014 Just before midnight on March 31, 2014, New York Governor Andrew Cuomo signed into law S6359-D, which implements components of the state’s fiscal plan for the 2014-2015 fiscal year, including Article 9-A reforms.

IRS Yields on Taxable UBIT Items

April 15, 2014 In a March 24, 2014 internal memorandum, the IRS Director of Exempt Organizations changed the IRS position on the taxability of certain items related to UBIT (unrelated business income tax) for state chartered credit unions. This change in position resulted from the IRS loss in two district court decisions involving credit unions.

Conflicts of Interest in Nonprofit Organizations

April 08, 2014 Managers and governors of organizations are held to a fiduciary standard that requires them to always act in the best interests of their own organization, even when such action may not be in their best personal interests or best interest of some other person or organization with which they are connected.

Construction National Outlook – March 2014

March 28, 2014 Harsh winters put a dent in construction of course, but the bigger concerns about the weather are in the effect on consumers.

What’s It Cost? – March 2014

March 28, 2014 The short-term steep decline in construction starts has significantly dampened demand for products, making it especially difficult for manufacturers to hold price increases.

Significant Diversion of Assets

March 24, 2014 Recent reports regarding the significant diversion of assets by nonprofit organizations has caused federal and state officials to launch investigations as to what this actually means.

Tax Alert – Transfer Pricing News

March 20, 2014 Internal revenue service releases guidance regarding the stages of the transfer pricing examination process and provides recommended audit procedures, as well as sources of reference material.

What’s New in Non-Profit Accounting?

March 11, 2014 Non-profit organizations and their reporting have been discussed by the Financial Accounting Standards Board (FASB) throughout the years and they continue to be an area of focus.

Fraud Prevention: Stopping the Next Charles Ponzi or Bernie Madoff

March 03, 2014 Charles Ponzi and Bernie Madoff are among the most infamous fraudsters in United States history. Based on the most recent study by the Association of Certified Fraud Examiners the typical organization loses 5-6% of its revenues to fraud each year.

The Rules of Qualified Sponsorships

February 24, 2014 A great way to raise funding for program services is through corporate sponsorship. If done correctly the entire payment will not be considered unrelated business income by the Internal Revenue Service.

Cash Flow is King, But…

February 17, 2014 “Cash Flow is King.” This is a popular saying among those in the valuation community and similar fields such as private equity and M&A advisory, based on a fundamental finance principle that the value of an investment is driven by its ability to provide a future return to that investor.

Ohio Small Business Investor Income Deduction: A Tax Cut for the Taking!

February 17, 2014 During June of 2013, Ohio Governor Kasich signed into law House Bill 59, which introduced multiple legislative provisions that cut taxes for Ohio individual taxpayers. Among the cuts was the new Ohio Small Business Investor Income Deduction, which provides a substantial tax benefit to owners of pass-through entities doing business in the state of Ohio.

Texas District Court Rejects a Taxpayer’s Election to Use Multistate Tax Compact Evenly

February 14, 2014 The issue raised in the case was whether Graphic Packaging Corp. was entitled to elect to use the Multistate Tax Compact as the basis for an evenly-weighted three-factor apportionment formula to apportion its Revised Franchise Tax base in lieu of the standard single-receipts factor.

What is the Value of Your AEC Firm? Make Sure to Nail Down These Points

February 12, 2014 Many architectural, engineering and construction (“AEC”) firms will have the need to transition ownership in the next decade. The following are industry-specific factors that we pay special attention to when valuing AEC firms.

Section 199 Deductions: IRS Updates Directive for Contracts

February 12, 2014 The Section 199 deduction, commonly referred to as the "domestic manufacturing deduction," is often critical to a manufacturing firm's tax fortunes.

Non-Profit Revitalization of 2013

February 11, 2014 Ohio law currently required charitable organizations and groups that solicit contributions from Ohioans to file an annual report with the Attorney General’s Office. Because of increased monitoring of non-profit organizations, coinciding with the re-vamped Federal Form 990, it is becoming more imperative that charitable organizations stay in compliance with the ever-changing regulations.

What’s It Cost? – February 2014

February 04, 2014 Data released in mid-December bore out the impact of reduced global demand and compression of margins on manufactured product prices in 2013, despite rising demand from a rebounding U. S. housing recovery. Only the deep recession in 2009 led to lower inflation in any year going as far back as 1956.

Construction National Outlook – February 2014

February 04, 2014 The current construction activity reflects the continued recovery from the recession and the under-building that followed.

ESOPs Can Help Secure You and Your Employees a Financially Secure Future

February 04, 2014 As business owners contemplate the task of converting their wealth that is locked up in their company, the option of an Employee Stock Ownership Plan (ESOP) should emerge as a viable option.

Caution Urged on New Goodwill Impairment Testing Guidelines

January 28, 2014 In an expected move, the goodwill impairment testing alternative for private entities created by the Private Company Council (“PCC”) was released by the Financial Accounting Standards Board (“FASB”). The update to Accounting Standards Codification Topic 350 – Intangibles – Goodwill and Other (“ASC 350”) applies only to non-public entities, as public entities will still be required to comply with GAAP.

Income/Franchise Tax: Elective Combination is an option under Michigan’s Corporate Income Tax (“CIT”) Regime

January 20, 2014 Michigan law expands the CIT definition of “unitary business group” to include an affiliated group.

The Times Are Changing For Credit Unions

January 16, 2014 There have been so many significant changes in the operating environment for credit unions over the past 20 years.

Preventing Fraud at Your Non-Profit

January 13, 2014 Frauds are committed within non-profit organizations every year, ranging from employee embezzlement and asset misappropriation to misstatements of financial reporting.

How and Why Buyers View Valuations Differently Than Sellers

January 10, 2014 Although merger and acquisition activity continues at a robust pace, there are many potential transactions involving the sale and purchase of a business that are never consummated because the buyer and the seller cannot come to an agreement on transaction price.  To understand why it is so difficult to reach a mutually agreed-upon purchase price, [...]

States Increase Unclaimed Property Audit Activity

January 07, 2014 As states continue to search for new ways to increase revenue, there has been a spike in unclaimed property compliance audits throughout the country.

City of Chicago Proposed Tax Disclosure Requirements for Vendors

December 19, 2013 On November 20, 2013, City of Chicago Alderman William Burns introduced proposed ordinance #02013-9148. Section 2-154-016 would require certain businesses doing business, seeking to do business, or seeking city action with the City of Chicago to disclose a variety of state and local tax information, which would eventually be made public.

IRS Releases Proposed Regulations Regarding Permissible Political Activities of Tax-Exempt Social Welfare Organizations

December 16, 2013 On November 26, 2013, The Treasury Department and IRS released proposed regulations under Section 501(c)(4) of the Internal Revenue Code. The proposed regulations provide that the promotion of social welfare does not include direct or indirect “candidate-related political activity”.

NCUA Examination Focus

December 11, 2013 NCUA will be focusing on interest rate risk, operational risk/off balance sheet risk, CUSO/third-party vendor exposure and compliance during examinations in 2014.

Construction: What’s It Cost?

December 05, 2013 Prices for mixed bag of products and materials that are used by the construction industry saw reverses in medium-term trends in September and October but overall the cost of construction maintained the same relationship to consumer prices as has held for the past couple of years. With few exceptions, any significant movement in prices has [...]

Construction National Outlook – December 2013

December 05, 2013 One byproduct of the federal government shutdown was that the avalanche of economic data that is released weekly was also shut down. Even without weekly jobs claims, unemployment estimates, labor and manufacturing numbers, businesses can be fairly certain that the state of the U. S. economy hasn’t changed much. In fact, what little data was [...]

Discounted Cash Flawed (Part 2): Can An Expert Rely on Management’s Projections?

November 20, 2013 A previous GBQ newsletter analyzed a bankruptcy case involving the use of a discounted cash flow (“DCF”) analysis. Like the bankruptcy case, this decision involves a discounted cash flow analysis and, in particular, the use of management’s projections by an expert.

Online Interactive Form 1023

November 18, 2013 In order to expedite applying for the Recognition of Exception under section 501(c)(3) the IRS has developed an online interactive Form 1023.

Purchase Price Allocation Impacts on Taxes and Financial Statements

November 06, 2013 A time of transition can be a stressful one for many business owners, especially when involving the ownership transfer of a company's assets or stock.

Using Outcomes to Measure Nonprofit Success

November 04, 2013 Those who donate to nonprofit organizations naturally want to feel their gifts will be used successfully in a way that will improve society or some part of it, like children, the sick, students, etc. But how can donors evaluate whether or not a charity will ultimately deliver on their promise or mission?

City of Los Angeles Announces Limited Tax Amnesty

October 22, 2013 The City of Los Angeles has announced a tax amnesty program that began on September 1, 2013 and will continue through December 2, 2013. This amnesty includes the following City of Los Angeles taxes: Business, Utility Users Taxes, Commercial Tenant’s Occupancy Taxes, Transient Occupancy Taxes, and Parking Occupancy Taxes.

Draft 2013 Form 990 Changes

October 22, 2013 On September 27, 2013, the IRS posted draft instructions for the 2013 Form 990, Return of Organizations Exempt from Income Tax.

Multistate Sales/Use Tax Update

October 18, 2013 The following discussion will summarize some of the more significant sales and use tax changes in California, Florida and West Virginia.

Government Shutdown Affecting Non-Profit Organizations

October 07, 2013 The government shut down that began last week may have been predicted, but wasn’t expected by many – thinking our political leaders would come to agreement to prevent the shutdown from occurring. While many people think about the federal employees facing potential layoffs and furloughs, the effects of the shutdown reach much further and may already be affecting your non-profit organization.

Final Section 263(a) Tangible Property “Repair” Regulations

September 16, 2013 On Friday, September 13, 2013, the Internal Revenue Service filed with the Federal Register the text of the much-anticipated final tangible property regulations. The final regulations provide guidance to taxpayers on the treatment of costs paid to acquire, produce, or improve tangible property under sections 162(a) and 263(a).

It’s OK to Question the Valuation Report!

September 05, 2013 Business valuation opinions are sought for a variety of reasons. Commonly, they are used to support significant corporate or shareholder transactions in which many stakeholders have a financial (and often personal) interest. Given the importance of these transactions, and by connection, the valuation opinions used to support them, it is imperative that the affected parties [...]

Navigators Under the Affordable Care Act

August 28, 2013 With the state exchange beginning open enrollment in October of this year, funding has been granted to organizations who are trained to act as Navigators, playing an important role to educate Ohioans on the different health coverage plans available on the state exhanges.

Talent At The Top

July 12, 2013 For middle-market manufacturers, especially family-owned businesses, the potential for growth often hinges on the activities and decisions of one individual – the owner.

Understanding the Proposed Changes to Determining the Allowance for Loan Losses

July 02, 2013 Last December the FASB issued an exposure draft on credit losses that would have a significant impact on the way that financial institutions compute and record their allowance for loan losses, if it is ultimately adopted.

What is the Expiration Date on the Apartment Boom?

July 02, 2013 With all the information that is available and availed in the development of real estate, there still seems to be no way to avoid overbuilding a hot property type.

Top Concerns for Non-Profit Governance: Gift Acceptance Policy

July 01, 2013 Have you implemented a formal gift acceptance policy?

Construction National Outlook – June 2013

July 01, 2013 The national economy passed some significant tests of strength as spring yielded to summer.

The Courtroom of the Future – Trial by Robot?

June 24, 2013 Over the course of my career providing litigation related consulting services to attorneys, I have witnessed some of the ways that technology has impacted litigation. What might the courtroom look like in ten or 20 years?

Attracting and Keeping the Right Talent

June 10, 2013 Manufacturers will have to fight for the talent they need.

Proposed Revisions to OMB Circular A-133

June 10, 2013 We provided an update last year on proposed revisions to OMB Circular A-133 and how this would affect your audits. Since then, new proposed revisions have been released that are different than the ones previously issued.

The Talent Bottleneck

June 07, 2013 U.S. manufacturers face a unique problem: despite high unemployment, the industry still suffers from a skilled-labor shortage. Today, after an impressive recovery from the recession, this problem is even more pronounced

Is Your Oraganization’s Tax Exempt Status in Jeopardy?

June 03, 2013 An organization can be organized under state law as a not-for-profit organization, but must still meet specific requirements in order to be considered tax-exempt under section 501(c)(3)by the IRS.

Location and Incentive Consulting

June 03, 2013 GBQ's Location and Incentive Consulting Practice provides a full range of services to assist companies with establishing, relocating or expanding operations.

Construction Financial Perspective – May 2013

May 17, 2013 The cost trends of recent months continued to extend at the end of the first quarter, as consumer prices (CPI) remained relatively flat, while producer prices for construction materials mirrored the trends in demand for the major construction categories.

Executive Compensation in Non-Profits – Risky Business

May 15, 2013 How times have changed. In the past eight to 10 years, there has been a significant shift in the general public's attitude about compensation.

Update on Tangible Property “Repair” Regulations

April 29, 2013 The regulations contain tax guidance for determining whether and when a business must capitalize costs incurred in acquiring, maintaining, or improving any tangible property.

Three Things Every Non-Profit Board Member Should Focus on In 2013

April 22, 2013 There are several key factors that nonprofit boards should be keenly aware of in 2013.

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