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How to prepay expenses strategically and report them accurately
In accrual-basis accounting, timing is everything. One core principle of U.S. Generally Accepted Accounting Principles (GAAP) is the matching concept, which requires organizations to recognize expenses in the same period as the revenue they help generate. Prepaid expenses — payments made for goods or services before they’re used — must be handled carefully to conform…
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What the new tax law could mean for you
As 2025 began, individual taxpayers faced uncertainty with several key provisions of the tax law that were set to expire at the end of the year. That changed on July 4, when President Trump signed the One, Big, Beautiful Bill Act (OBBBA) into law. The OBBBA not only makes many TCJA provisions permanent but also…
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Significant business tax provisions in the One, Big, Beautiful Bill Act
The One, Big, Beautiful Bill Act (OBBBA) was signed into law on July 4. The new law includes a number of favorable changes that will affect small business taxpayers, and some unfavorable changes too. Here’s a quick summary of some of the most important provisions. First-year bonus depreciation The OBBBA permanently restores the 100% first-year…
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2 options for creating a charitable legacy: Lifetime gifts and charitable bequests at death
Incorporating charitable giving into your estate plan can be a thoughtful and strategic way to support causes you care about while also achieving estate planning objectives. Whether you’re driven by philanthropic goals, legacy planning or financial considerations, planned giving can be an effective tool if you’re seeking to make a lasting impact. You generally have…
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The financial triple play: 3 reports to help you stay at the top of your game
In baseball, the triple play is a high-impact defensive feat that knocks the competition out of the inning. In business, you have your own version — three key financial statements that can give you a competitive edge by monitoring profitability, liquidity and solvency. First base: The income statement The income statement (also known as the…
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Automate that! How AI and other software can help improve efficiency
Not-for-profits often work with limited resources, making efficient operations critical. Artificial intelligence (AI) and other forms of automating repetitive tasks can improve donor engagement, optimize fundraising and expand outreach. Human touch Nonprofits understandably might fear that automation will remove the human touch valued by everyone from founders to constituents, but they have plenty of reasons…
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Crowdfunding can be easy, but the tax implications may not be
Does your not-for-profit use crowdfunding platforms — such as Kickstarter, GoFundMe and Indiegogo — to raise money? Many nonprofits have found they’re a great way to engage potential supporters, particularly younger adults. However, there are tax implications that may be different from what you’re used to with other fundraising methods. Let’s take a look. IRS definition…
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The IRS recently announced 2026 amounts for Health Savings Accounts
The IRS recently released the 2026 inflation-adjusted amounts for Health Savings Accounts (HSAs). Employees will be able to save a modest amount more in their HSAs next year. HSA basics An HSA is a trust created or organized exclusively for the purpose of paying the “qualified medical expenses” of an “account beneficiary.” An HSA can…
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Crowdfunding can be easy, but the tax implications may not be
Does your not-for-profit use crowdfunding platforms — such as Kickstarter, GoFundMe and Indiegogo — to raise money? Many nonprofits have found they’re a great way to engage potential supporters, particularly younger adults. However, there are tax implications that may be different from what you’re used to with other fundraising methods. Let’s take a look. IRS definition…
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When corporate sponsorships raise UBIT issues
Under the Internal Revenue Code, “qualified sponsorship payments” to not-for-profits aren’t subject to unrelated business income tax (UBIT). Qualified payments refer to money, property transfers or the performance of services by a business without an expectation or arrangement that the business will receive any “substantial return benefit” in exchange. However, some corporate sponsorships don’t qualify,…
