October 2015

Charities Lost 103 Donors for Every 100 They Gained in 2014, Says Study

According to a new survey, for every $100 in new donations nonprofits gained in FY14 over the previous year, they lost $95 in lapsed or reduced donations. While this is disappointing, even worse is the loss of actual donors: for every 100 new donors gained in 2014, participating nonprofits lost 103. This article highlights other study findings.

Three Things Nonprofits Can Do To Successfully Adopt New Technology

Many nonprofit leaders may be frustrated with outdated processes within their organizations.  Introducing software systems to help with automation may seem like a way to fix all.  This article suggests three management tips to help your organization adjust to new technology, 1) Form a team, 2) Learn first, and 3) Customize less, not more.

The Rise of Virtual Currency Donations

Charities are starting to accept donations of virtual currency, such as Bitcoin.  The IRS issued a ruling stating that virtual currencies should be taxed as property, not currency.  Donors who paid less for their virtual currency than it is now worth may be eligible for a significant tax deduction. This article discusses steps that donors need to take to make gifts of virtual currency.  Nonprofits that wish to accept virtual currency donations will need to open a virtual currency account, to establish policies for acknowledging these kinds of donations, and to record the transactions properly in their books.

Crowdfunding and income taxes

As thousands of businesses and individuals attract donors through crowdfunding on websites like kickstarter.com, indiegogo.com and gofundme.com, there is often little thought put into the ramifications for income taxes.  Crowdfunding income has not been addressed by Congress and the IRS. This article will provide some key points and will discuss other related considerations. 

REMINDER:  Annual reports are due to the Secretary of State’s office by November 1

Nonprofits that are organized as corporations must file annually with the Secretary of State’s office by the 1st of November.  The filing is easily done online.  However, if you would like assistance from our office, please email Gino Borgonzi at eborgonzi@edelsteincpa.com, and provide the following information: current listing of directors and date of annual meeting.
© 2015 Edelstein & Company LLP. All Rights Reserved.
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