#nonprofit
Nonprofit accounting, fund tracking, and compliance
ASU 2016-14 cut nonprofit net assets to two classes and added a liquidity note naming spendable funds — read the columns and the note before the total.
An encumbrance reserves budget when a purchase order is issued, before any invoice arrives — the entry, liquidation, and year-end treatment explained.
Inurement — any insider payoff — can cost a 501(c)(3) its exemption; outsider private benefit must stay incidental. How the IRS tests each.
Unconditional pledges are booked at present value when promised — conditional gifts wait until the barrier falls.
Ministers are employees for income tax but self-employed for Social Security: housing allowances escape income tax yet still owe SECA tax.
A 501(c)(6) business league earns IRS exemption by lifting a whole industry — unlimited lobbying included — but lobbying-linked dues are not deductible.
A 1:1 match turns a $250 employee gift into $500 for any IRS-verified 501(c)(3) — start with a $500 cap and quarterly payouts.
A contribution is conditional only with both a barrier and a right of return — otherwise your nonprofit books the grant as revenue now, not a liability.
A 501(c)(4) may electioneer only while politics stays under half its effort, per IRS rules — and political spending triggers 21% tax via Form 1120-POL.
The IRS charitable mileage rate is 14 cents a mile, frozen by statute since 1998. What volunteer drivers can deduct, and the log that proves it.
Benevolence paid to a church employee is always taxable IRS wages on Form W-2 — gifts to needy non-employees are tax-free. The policy that keeps both straight.
IRS rules: deduct only what a gala ticket or auction bid exceeds fair market value; raffle and 50/50 tickets are never deductible, even for charity.
