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]

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]

How to Determine the Salary for a Nonprofit Executive

by Linda M. Lampkin, Senior Nonprofit Compensation Specialist 17. July 2017 08:07
All salary negotiations need to begin with research—both employer and employee need to collect meaningful data, not just anecdotes, about typical pay for genuinely comparable positions before beginning compensation discussions. This approach not only makes sense for employers and the executives—it is what the IRS and charity regulators require. [More]