Tag Archives: Governance
Receiving Compensation as a Corporate Director?
Common practice in Washington has held that a corporate director is not engaged in a business when serving as a member of a board.
As a result, the compensation the director receives for serving on the corporate board has not been considered subject to the state’s business and occupation (B&O) tax.
This spring, the Washington legislature concluded that corporate directors are, in fact, independent contractors engaged in a business―thus making certain director’s fees subject to B&O tax.
Effective July 1, 2010, corporate directors (continue reading…)
Posted in High Net Worth Practice, Personal Wealth Planning Services, Tax Services
Tagged Compensation, Governance, Personal Tax, State + Local Tax
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Managing Your Charity’s Endowments Responsibly?
By 2008, Harvard University had amassed an incredible $37 billion in endowments, accounting for nearly a third of its operating revenue. A year later, the value of those endowments had fallen by nearly $10 billion.
The impact on the University’s budget was immediate, including frozen salaries for faculty, early retirement offers to 1,600 employees, and the loss of tuition assistance to needy students.
Critics point to risky investment strategies, illiquid assets, and an approach that de-emphasized more conventional investments in Treasury bills, (continue reading…)
Posted in Not-for-Profit Practice
Tagged Governance, Legislation, Operations, Philanthropy
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SPOTLIGHT | Services for Not-for-Profit Organizations
It’s all about passion, that relentless drive to make a difference in your community, your world. And it’s about the business of doing good.
Bader Martin can help with the financial and advisory services that allow you to do it well. Our not-for-profit practice delivers an integrated, year-round suite of services for not-for-profit organizations and private foundations, as well as their executives and donors.
You might say we have a special passion for not-for-profit organizations. With backgrounds in auditing, tax planning, governance, (continue reading…)
Know the New Rules for Managing Your Charity’s Charitable Assets?
It’s been more than 35 years since Washington State, along with 47 other states, enacted the Uniform Management of Institutional Funds Act (UMIFA). The Act provided a uniform set of rules to guide charitable institutions in managing and investing their funds, as well as in spending funds donated to them as endowments.
To provide charities with updated guidance and authority, more than 30 states have recently enacted new legislation based on the model Uniform Prudent Management of Institutional Funds Act, or UPMIFA. (continue reading…)
Need to Update Your Not-for-Profit’s Policies in Advance of the New IRS Form 990?
Let’s be clear: Not-for-profit governance practices are not mandated by tax law.
In fact, according to Steven T. Miller, the IRS’ Commissioner for Tax Exempt and Government Entities, “I suspect some will continue to say that the IRS is inserting itself into something best left to others, or that it lacks authority here.”
But, according to Miller, “we have satisfied ourselves that we have jurisdiction to play a role in this area, and that it is proper and important for us to do so. (continue reading…)
Thought About the Impact of the New IRS Form 990 on Your Not-for-Profit?
Taking a cue from Mark Twain (The more you explain it, the more I don’t understand it.), the IRS released the first major change to Form 990 in nearly thirty years―while the final instructions were still being written.
IRS Commissioner Doug Shulman provided a clue into the thinking behind the new form: “Tax-exempt organizations provide tremendous benefits to the people and communities they serve, but their ability to do good work hinges upon the public’s trust. The new Form 990 will (continue reading…)
