Tax Reform Hits Compensation of Nonprofit Executives in 2018

by Linda M. Lampkin, Senior Nonprofit Compensation Specialist 24. January 2018 12:21
Effective January 1, 2018, the Tax Cuts and Jobs Act, otherwise known as the Tax Reform bill, imposes a new 21% excise tax on nonprofits that pay compensation of $1 million or more to any of their five highest-paid employees. There will also be a tax on certain employee benefits. [More]

How Many Charity CEOs Will Earn $1 Million or More in 2018?

by Linda M. Lampkin, Senior Nonprofit Compensation Specialist 27. December 2017 12:26
A Wall Street Journal study published in March 2017 found that around 2,700 employees of 501(c)(3) nonprofits received annual compensation of more than $1 million in 2014. In 2011, a similar study found that about 2,000 were paid at this salary level, so the number increased about 30% over the three years. The number of employees receiving compensation in excess of $1 million will probably increase significantly in 2018. [More]

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]

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