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.
Not-for-Profit Advisory Committee to Meet with FASB on Thursday
Scheduled for Thursday, the Financial Accounting Standards Board (“FASB”) will hold its second meeting next week with the Not-for-Profit Advisory Committee (“the Advisory Committee”) from 10:00 a.m. to 5:30 p.m. As part of the meeting agenda, the FASB plans to discuss with the Advisory Committee its project on financial statements of nonprofit entities, as well as current trends, concerns and observations. All general sessions from the meeting will be open for public observation. In addition, the Advisory Committee will host a breakout group session at 11:00 a.m. and 2:30 p.m. Due to space limitations, the group discussions will not be. Read More.