The NonProfit Times - March 1, 2008 - (Page 15)

TAXING ISSUES deferred compensation. Part VII includes several questions that will direct you to complete Schedule J. For most individuals listed, the Schedule J requirement will be a total of $150,000.There is also a question asking if any unrelated organization paid compensation to a listed individual. The highlights issued by the IRS indicate that this will only include situations structured to avoid disclosures.Therefore,it should not include individuals who volunteer for your organization while being paid by someone else. Part VII also asks for the five highest paid independent contractors who receive more than $100,000 from your organization. It is no longer limited to professionals.You will also have to provide the total number of independent contractors paid more than $100,000. rectors, trustees and key employees, as well as other disqualified persons, separately from other compensation. These amounts will be on a fiscal year basis and will not tie in to the amounts in Part VII. Part X is your balance sheet. It is essentially unchanged from the draft, although some of the lines have been changed.As on the draft, all of the supporting information will be provided by using Schedule D. Finally, Part XI has been added to ask several questions about your financial statements and reporting. There are questions about your accounting method, the use of independent accountants, audit committee, and whether you are subject to the audit requirements of OMB Circular A-133. The IRS has done an exceptional job of responding to the comments submitted by the exempt sector, other users and their advisors. However, completing the new Form is going to be a challenge.There are a number of changes to the supporting schedules, and the revised instructions are not yet available. We will advise you of these items in a later article. In the meantime, we urge you to download the final draft and review it for yourself so you can determine what new information you will need to have for next year’s filings and begin to compile it now. NPT Harvey Berger is a retired tax partner with Grant Thornton and currently serves as a consultant on nonprofit tax issues. His email is harvey.berger@gt.com.D.Greg Goller is Grant Thornton’s National Partner-in-Charge of Not-for-Profit Tax Services and is based in the Washington, D.C. area office.His email is greg.goller@gt.com PART XI has been added to ask several questions about your FINANCIAL STATEMENTS and reporting. Part VIII contains your statement of income. Contributions are broken out into five subcategories (federated campaigns, membership dues, fundraising events, related organizations and government grants) plus a line for others. Program service revenue has five untitled lines for entering categories.This part has columns for reporting amounts that are related, unrelated or excluded from classification as unrelated business income. There are no longer exclusion codes for the last category.For Section 501(c)(3) and Section 501(c)(4) organizations, some of the revenue shown in this part may relate back to the programs you described in Part III. The statement of functional expenses is in Part IX. If your organization is exempt under IRC Section 501(c)(3) or (c)(4) you will still have to break down each item between program services, management and general, and fundraising.There are additional lines for reporting compensation of non-employees, and some additional descriptions. You will have to show compensation of officers, di- A Team of Trusted Advisors. Not an Army of Salespeople. Your day includes dealing with an extraordinary number of tasks. Some are large and important. Others are small –– and still important. That’s the beauty –– and challenge –– of being a nonprofit. At Telosa, we work exclusively with nonprofits, providing intuitive, expandable and cost-effective fundraising and information management software that allows you to remain focused on the task at hand, as well as your long term goals. By committing to you as a partner who learns the specifics of your organization and situation, we can guide and advise you to the best solution, then remain a close resource as your needs shift. Whether you’re using an internally developed database or coming from another fundraising software program, there’s no need to fear software changes –– and no reason to overpay for complex alternatives. Contact Telosa today. Most of us –– including our founder –– come from the nonprofit world, so we’ve walked in your shoes and support your efforts. We’d love to hear your story and help to simplify your life. Find out more at www.telosa.com. TELOSA: Fundraising and Information Management Software for Nonprofits www.telosa.com / info@telosa.com / 800.676.5831 / 650.853.1100 MARCH 1, 2008 THE NONPROFIT TIMES www.nptimes.com 15 http://www.telosa.com http://www.telosa.com http://www.telosa.com http://www.nptimes.com

Table of Contents Feed for the Digital Edition of The NonProfit Times - March 1, 2008

The NonProfit Times - March 1, 2008 Fuel Costs Eating Up Food Banks California Legislation Pushing Foundation Funding Diversity Estate Tax Won't Die Contents Who...When...Where...How...What? Red Cross Cuts Jobs, Regional Support In $200 Million Deficit General Ramblings: What the....? Briefs Taxing Issues: New for 2008 Foundations: Rebooting At Gates Mail Drove Donors to Give Online Streetsmart Nonprofit Manager: The Power of the Founder Software: Technology Innovation Calendar Fundraising Guide NPT Jobs Resource Directory AFP International Conference Insert

The NonProfit Times - March 1, 2008

For optimal viewing of this digital publication, please enable JavaScript and then refresh the page. If you would like to try to load the digital publication without using Flash Player detection, please click here.