IRS Plan for Nonprofit Enforcement in 2018

by Linda M. Lampkin, Senior Nonprofit Compensation Specialist 16. October 2017 10:42
When the IRS issued its work plan for fiscal year (FY) 2018 in September, the nonprofit sector gained some insight into future enforcement and compliance activities. Yes, the IRS cites reduced resources and staff, but intends to step up the use of data analytics and computer analysis to increase the effectiveness of its efforts. The 16-page report, entitled "Tax Exempt and Government Entities FY 2018 Work Plan," indicates that there will continue to be focused attention on data, and the data used will be from the Form 990 filed annually by-tax exempt organizations. It is clear that what is reported on the Form 990 needs to be consistent and accurate. [More]

Understanding Intermediate Sanctions

by Linda M. Lampkin, Senior Nonprofit Compensation Specialist 3. October 2017 08:22
Today there are fewer employees charged with overseeing the nonprofit sector than there were a few years ago, but the IRS is increasing its use of data to target its investigations on the organizations that are the most likely to be in violation of the rules on paying excess compensation or benefits, leading to fines for those individuals responsible and even loss of tax-exempt status for the organization. [More]

FLSA Overtime Law Uncertainty

by Lyle Leritz, Ph.D. 26. September 2017 10:06
The Fair Labor Standards Act (FLSA) was introduced in 1938 with the objective to improve labor conditions, protect underage employees, provide a minimum wage, and allow for overtime pay. Several amendments to the FLSA occurred over the years, with a significant change in 1963 with the Equal Pay Act. This amendment required employers to pay men and women the same wage for jobs that required equal skill, effort, and responsibility and were performed under similar working conditions. Legitimate pay practices like seniority, merit-based programs, or systems that tied earnings to quantity or quality still allowed for unequal pay. Over the next 41 years, the FLSA was amended to increase minimum wages (multiple amendments), provide protections for specific types of workers (e.g., migrant and seasonal workers, etc.), and other relatively small changes. [More]

Attracting Nonprofit Executives in a Tight Labor Market

by Linda M. Lampkin, Senior Nonprofit Compensation Specialist 12. September 2017 07:52
With the US unemployment rate at a little over 4%, considered "full employment" by some economists, there is increasing competition between the nonprofit and for-profit sectors for employees. The for-profit companies are also being much more aggressive about promoting the social aspect of employment as a recruiting technique. Employees seeking a mission, the traditional nonprofit talent pool for nonprofits, can now find jobs in for-profit companies that may offer what they want – some paid hours for volunteering, a company commitment to a cause, etc. [More]

Nonprofit Executive Compensation: How Much Is Too Much?

by Linda M. Lampkin, Senior Nonprofit Compensation Specialist 27. July 2017 10:10
An investigative report about the Goodwill Industries affiliate in Omaha in a local paper started by looking at high compensation levels for the Omaha executives, but then continued to look at the payment of hourly rates for disabled workers less than the minimum wage. Then the issues of conflict of interest between board and staff, nepotism, and even the repackaging of foreign-made goods sold under “Made in America” labels were revealed. As community support waned, there was serious discussion of withdrawing the county-granted organizational exemption from property tax. [More]