March 2016

'Tis The Gala Season

The following are some key factors to take into consideration as you plan and prepare for your nonprofit’s flagship event. 
  • Ensure that you know the true value of all auction items.

  • Determine the fair market value of event tickets.

  • Accurately track all donations, including pro bono services.

  • Never under estimate the power of a hand written thank you note or personal phone call to donors. Whether they’re making a large donation or it’s their first time participating in one of your events, personal outreach can be essential to cultivating the relationship.

  • Follow best practices and guidance around nonprofit special events reporting

Private Foundations

According to letters sent to 11 foundations in November 2015, some foundations may be operating museums that allow donors to collect substantial tax benefits while only providing minimal in public benefit. The letters requested the following:
  • The foundations’ application for exempt status filed with the IRS

  • Total number of hours the museums were open for the past five years

  • Number of visitors to the museums over the past five years

(The Exempt Organization Tax Review. March 2016- Vol. 77, No. 3)

2017 Fiscal Budget

On February 9, 2016, the administration proposed its 2017 fiscal year budget which limits the value of charitable deductions and other itemized deductions to 28% for couples with incomes above $250,000 and for single filers earning more than $200,000.  Those on the opposing side believe that this will take resources away from charities and that donors will have less incentive to give.  
(The Exempt Organization Tax Review. March 2016- Vol. 77, No. 3)

Philanthropy Roundtable Opposition

The Philanthropy Roundtable opposed the administration’s proposed change to the private foundation net investment income tax of 1.35%. Instead, the Roundtable prefers a flat 1% rate, which was included in the America Gives More Act of 2015.  
(The Exempt Organization Tax Review. March 2016- Vol. 77, No. 3)

What Are Nonprofit Boards Concerned About in 2016?

In early February, the Nonprofit Quarterly asked their readers to participate in a survey to gauge areas where BoardSource should ask questions as it relates to their biennial survey.  A variety of questions were asked of the sample audience regarding areas of concern and issues most pressing nonprofit boards.
Read more here.
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