By: Jeff Quigley, CPA, Partner

If you were surprised by the outcome of your recent tax preparation, you may now be motivated to make some changes. You may decide to adjust your withholdings, commit to give more to the charity of your choice, or simply endeavor to better organize your records.

You may now have the time to take that same proactive approach to assuring you have identified all of your organization’s contracts. In some cases the accounting department may only know a contract has been signed when it processes the cash receipt or disbursement generated by it.

If your accounting department does not currently review all contracts prior to approval, there are a few steps you can take to assure you compile a comprehensive list of contracts:

  • Establish policies to assure the accounting department is included in the contract approval process
  • Periodically inquire with department heads regarding signed contracts with key service providers
  • Periodically inquire with human resources department regarding any agreements regarding: employee compensation, royalty agreements and insurance related agreements such as premium stabilization reserves
  • Periodically inquire with development department regarding contributions, grants, and promises to give received by the organization
  • Review cash receipts and disbursement for systematic payments

Taking the time to compile a comprehensive list of active contracts can improve cash management, increase organizational awareness and reduce surprises.

Jeff Quigley is a Partner in Tate & Tryon’s Audit and Assurance Services department and can be reached at jquigley@tatetryon.com.

INSIGHTS & RESOURCES

Tax-Exempt Organizations and 2017 Tax Reform

Posted on , updated on

Uncategorized11/23/2017

Dear Friends in the Tax-Exempt Community:
Below is a brief overview of the key tax reform proposals relating to tax-exempt organizations. As you know, Congress is currently putting together legislation to effect significant tax reform with a timeline of having it enacted this year. Although Congress is still negotiating, the following reform proposals may impact your […]

Royalty Income of Nonprofits is Being Targeted for Taxation!

Posted on , updated on

Uncategorized11/20/2017

The Senate Finance Committee’s version of the Tax Cuts and Jobs Act includes a number of items that would impact nonprofits.
Perhaps the most immediately significant is the provision that would call for taxing the revenue generated from royalties related to licensing a nonprofit’s name and/or logo. Royalty revenue has traditionally been exempt from income taxes. […]

How Could Federal Tax Reform Impact Nonprofits?

Posted on , updated on

Exempt Organization Tax11/17/2017

Uncategorized11/17/2017

By:  Doug Boedeker, CPA, Partner
It has been a challenge staying current on the twists and turns involved with the proposals for Federal Tax Reform. Many of the ideas within the tax reform package have a direct impact on nonprofit organizations.
Charitable deductions, executive compensation, employee fringe benefits, and intermediate sanctions are just some of the “hot […]

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