In the latest version of the Tax Cuts and Jobs Act that awaits the President’s signature, employers will be taxed on amounts spent after December 31, 2017 on employee parking. For-profit employers that deduct expenses may not deduct costs for employee parking. Similarly, employers that do not deduct expenses (i.e., tax-exempt and governmental entities) will be subject to unrelated business taxable income on the expenses they incur for employee parking. For each of these ... Keep Reading »
Stop “Partnering” and Begin “Strategically Allying”
Tax exempt organizations often enter into relationships with other organizations that are collaborative in nature rather than merely quid pro quo. These relationships are frequently referred to as “partnerships” by tax exempt organizations because the connotation is one of teamwork and working toward a common goal. However, under state law, entering into a “partnership” can result in a host of liabilities that none of the “partnering” organizations intend. In addition, ... Keep Reading »
Mergers & Acquisitions
For better or worse, the economy has caused an increase in the consolidation of tax exempt organizations as less robust organizations have sought refuge for their programs in larger, more recession-proof organizations and as organizations of similar size or financial status have joined together to weather the economic storm. Whatever the reason, tax exempt organizations are increasingly finding themselves in the relatively uncommon territory of mergers and acquisitions. ... Keep Reading »
Intellectual Property
Tax exempt organizations often overlook their ownership and use of intellectual property, particularly their trademarks and copyrightable materials. Intellectual property (IP) use should concern a tax exempt organization because the organization must both (a) protect its IP; and (b) ensure that it is not infringing on someone else’s IP rights. Protecting the tax exempt organization’s IP requires identifying the IP and preferably registering it to secure rights in it. ... Keep Reading »
Corporate Governance and D&O Indemnification
Corporate Governance Tax exempt organizations are generally more aware of their corporate governance policies and procedures now than they have been in the past in large part thanks to the revamping of the IRS Form 990. Many organizations have had a knee-jerk reaction to the questions on the Form 990 regarding which policies a tax exempt organization has in place by simply adopting them all, quickly, without giving much thought as to whether they are necessary or ... Keep Reading »