Strategic Planning
Succession Planning Rare, Even as Leaders Think Toward Retirement
A recent study shows that Nonprofit leaders 55 and older are concerned not only for their own future, but also for the future of their organizations post-retirement. Even so, only 30% of respondents had engaged in any kind of succession planning for their organizations. As The Chronicle of Philanthropy reports, many respondents still expect to serve in an advisory capacity into their retirement which could cause confusion at the executive level. On the one hand, “today’s environment is vastly different from when many of these people began their nonprofit careers: It’s muchmore strategy-dependent, competitive, and aggressive. So it is legitimate to have concerns about your organization. Read More.
Sequestration – Tomorrow’s Problem Today
Congressional inaction with regard to establishing budgets and defining budget reductions through the sequestration process is creating general unease for all government contractors. Government contractors across the country are crying foul at the breadth and depth of rumored budget cuts. Reductions in government spending are inevitable, as the level of spending over the past decade was unsustainable. Proposed spending reductions appear likely to impact all governmental agencies. Some agencies will have their funding reduced, while others may benefit from the “balloon effect” (when pressure is applied to one area of a balloon, the air moves into another area of less. Read More.
New Repairs & Maintenance Regulations May Require a Change in Accounting Method
Last month, we advised you about a seismic change in the IRS position regarding how repairs and maintenance expenses are to be handled for tax purposes. What signaled this shift in the IRS position was a directive issued to its agents in the field to “stand down” on all examinations in progress where the treatment of repairs and maintenance expenses was an issue. Agents were further instructed not to begin new activity in this area for any year beginning before January 1, 2012. The IRS also advised agents to ensure that, going forward, taxpayers either have implemented or will shortly implement the changes. Read More.
New JOBS Act Lowers Barriers to Business Investment
Earlier this month, President Obama signed into law the Jumpstart Our Business Startups Act (“JOBS Act”), which includes a number of provisions aimed at easing access to capital for entrepreneurs with the goal of ultimately creating new jobs. Crowdfunding from Non-Accredited Investors The JOBS Act eases restrictions on equity-based crowdfunding to now allow investments by all investors, not just accredited investors. Any non-credited investor can invest up to the lesser of 10 percent of annual income or $10,000. Crowdfunding investments will still need to file with the Securities and Exchange Commission (SEC), and are restricted to raising $1 million annually,. Read More.
The Impact of NDAA Restrictions on DoD Pursuit of LEED Gold or Platinum Certifications
The National Defense Authorization Act (“NDAA” or “the Act”) placed restrictions on FY 12 Department of Defense (“DoD”) appropriations, greatly increasing the difficulty the DoD will have in obtaining gold or platinum Leadership in Energy and Environmental Design (“LEED”) certifications. These restrictions pose a risk to contractors who assist DoD in “green” construction or renovation efforts. Depending on the funds used, such contracts could be at risk for modification or even termination. Executive Order 13423, signed by President Bush in 2007, set “goals in the areas of energy efficiency, acquisition, renewable energy, toxics reductions, recycling, renewable energy, sustainable buildings, electronics. Read More.
IRS Revises Energy Savings Percentages for Section 179D Deduction
On February 24, 2012, the IRS issued Notice 2012-22 , which outlines changes to the energy savings percentages that taxpayers can use when qualifying energy-efficient commercial buildings for the Section 179D deduction. Effective for property placed in service from the date of the notice through December 31, 2013, the following percentages apply: 25% for interior lighting systems 15% for heating, cooling, ventilation and hot water systems 10% for the building envelope What is Section 179D? Intended to offset some of the costs of qualifying energy-efficient improvements to commercial buildings, the Section 179D deduction allows taxpayers to take an immediate expense for the. Read More.
