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Results for:   Topic: “Tax and Legal”  

Classifying Staff: Employees Versus Independent Contractors

Generally, a worker may be classified as an independent contractor if the employer has the right to control or direct the result of the work but not the means or methods of accomplishing the result. The Internal Revenue Service (IRS) uses a 20-factor test to determine whether a worker is an employee or an independent... Read More

Allocating Foundation Expenses for Tax Purposes

A private foundation is subject under section 4940 of the Internal Revenue Code to a 2% (sometimes 1%) tax on net investment income. It also is subject to the requirement of section 4942 that a minimum of 5% of the fair market value of the foundation’s noncharitable assets must be paid out for charitable programmatic... Read More

Lobbying: Is Incorrect Advice Inhibiting Your Ability to Act?

Most foundations cannot directly earmark money to support a lobbying campaign. (Community foundations and others that have public charity status are notable exceptions to this rule.) What constitutes lobbying, however, often is murky. Support for a public education campaign, for example, usually is not lobbying, assuming it does not urge lawmakers or the public to... Read More

Top Ten Year-End Foundation Tax Tips

Avoid the federal excise tax by donating publicly traded appreciated stock to a grantee, an underused yet effective tax-planning vehicle.For example, if a foundation maintains 1,000 shares of Company X with a market value of $200 a share ($200,000), but a cost value of $50 a share ($50,000), the foundation would have to pay an... Read More

Employee Compensation: Legal Responsibilities

As an employer, you are responsible for documenting that your employee is eligible to work in the United States. To do this, the employee must complete Immigration and Naturalization Service Form I-9, Employment Eligibility Verification. You, the employer, must keep this form on file for as long as the employee works for you. For small... Read More

Are You Underestimating Your D&O Liability?

Even for nonprofit foundations with few or no employees, the risk of litigation is real—and rising. Why D&O insurance? Once assumed to be costly and once excluded from many nonprofit budgets as a result, D&O liability insurance has evolved into a broad, affordable, and important form of coverage for any foundation. Even if you have... Read More