Author: Clifford Perlman
Charities’ Response to COVID-19: A Guide to Using Endowment Funds for Emergency Purposes
As many nonprofit organizations are slashing their budget projection in preparation for an anticipated economic slowdown due to the COVID-19 outbreak, they may find themselves, as many did in the 2008 recession, with endowment funds that only allow the spending of income … read more
Stop! Purchase of an Event Ticket with DAF Dollars Could Land You in Hot Water with the IRS
The IRS has proposed regulations which, if enacted, will confirm its position that donor advised funds (DAFs) are barred from paying for tickets to charitable events on behalf of the donor advisor. A DAF is a giving vehicle established at a public … read more
US Affiliates of Foreign NGOs – A Primer
In recent years, the rise of the global economy has propelled the breakdown of barriers to doing business internationally. In the philanthropic arena, foreign NGOs (non-governmental organizations) seeking to spread their charitable aspirations and enhance fundraising, have followed suit by establishing affiliated … read more
Restricted Funds – Administrative Expenses are Sometimes Permissible
Many of my clients receive much of their funding in the form of restricted gifts designated for specific purposes or programs. I find that many of them unnecessarily pay for the administration of their restricted funds with general operating revenue – sometimes … read more
When funds go missing – what can you do, what must you do?
One of the most difficult situations I’ve encountered while counseling nonprofit boards over the years is when they have discovered that the organization’s funds have been embezzled, most commonly, by an insider. Two real-life situations are particularly noteworthy. In the first instance, … read more
IRS Continues Amnesty Program for Misclassified Workers
Employers who may have incorrectly classified workers as independent contractors now have a chance to correct their mistake without triggering a significant income and employment tax liability if they agree to prospectively treat workers as employees and pay a fraction of the … read more
