Exposure Draft on Tax Abatement Disclosures Issued
Providing financial statement users guidance on tax abatement programs, an exposure draft for the proposed Tax Abatement Disclosures (Statement) has been issued by the Governmental Accounting Standards Board. Open for public comment, the proposed guidance focuses on tax abatements stemming from agreements entered into by a reporting government, along with those originated by other governments that cut the reporting government’s tax revenues. If approved, the Statement would mark the first time state and local governments are required to reveal information regarding property and other tax abatement agreements. Particularly, governments would have to disclose general information like the tax being abated, number of. Read More.
Super Circular 101 Webinar Recording Now Available
For those who missed the October 9th webinar, “Super Circular 101—Proposed New Regulations for Grant Requirements and Compliance”, the recording is currently available on-demand. Featuring Cherry Bekaert’s Melisa Galasso and Carlene Kamradt, the webinar discusses the Office of Management and Budget-issued “Super Circular” that combines requirements from eight grant circulars into one set of guidance. To watch the replay, click here and complete the form.
Charity Executive Pay Increasing
After struggling to stay on par with inflation in recent years, a new study suggests that charity executive salaries at large nonprofits are growing. Based on figures from 82 organizations, The Chronicle of Philanthropy’s compensation survey showed that charity executives experienced a salary increase of 4.9 percent from 2011 to 2012. Speaking on the increase, compensation consultant Brian Vogel noted, “Organizations have a bit more money, and they’re willing to bid up salaries. The market is stiffening a bit.” For the complete article , visit The Huffington Post website. Cherry Bekaert also offers accounting and consulting services for any nonprofit organization. Learn. Read More.
North Carolina Nonprofit Denied Property Tax Exemption
Ruling that some commercial activities on a Western North Carolina nonprofit’s property are not used completely for charitable or educational reasons, the North Carolina Court of Appeals (“the Court”) has denied the organization a property tax exemption. Basing its decision on a strict interpretation of the term “wholly and exclusively,” the Court identified gift shop and restaurant operations, and the existence of administrative offices are considered commercial activities not suitable for property tax exemption among nonprofits. The Court’s broad application of the “wholly and exclusively” term to all nonprofit property tax exemptions reflects concerns expressed by North Carolina nonprofits, as. Read More.
Senate Democrats Say Audit Excluded Analysis of Democrat-Backed Groups
After an audit by the Treasury Inspector General for Tax Administration last year discovered the Internal Revenue Service (“IRS”) was unfair in its scrutiny of Republican-backed Tea Party groups, a recent report by the Democratic arm of the Senate Permanent Subcommittee on Investigations (“the Subcommittee”) stated that Democrat-supported groups were given similar attention, but went ignored by the inspector general. Released last week, the report says the IRS mismanaged groups’ applications for nonprofit status, and last year’s audit did not mention the agency’s use of terms like “progressive” to label groups that leaned Democrat. While declining to participate in the. Read More.
FASB to Hold Meeting with Not-for-Profit Advisory Committee
As the first of two discussions this week, the Financial Accounting Standards Board (“Board”) will meet with the Not-for-Profit Advisory Committee (“the Advisory Committee”) today. Beginning at 8:30 a.m. EST, Board members plan to discuss with the Advisory Committee how to implement in the nonprofit sector Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (Topic 606), and the Board’s current project on financial statements of nonprofit entities. For additional information on the meeting agenda, visit the FASB website . Also visit our Nonprofits industry page for information on Cherry Bekaert’s services.