IRS Issues Guidance on Tax-exempt Entities Funding Employee Benefits 

On Dec. 10, 2019, the IRS issued a final regulation applicable to voluntary employees' beneficiary associations (VEBAs) and supplemental unemployment benefit trusts (SUBs), which are tax-exempt entities that exist to fund employee benefit programs. The final regulation explains the calculation of unrelated business taxable income (UBTI) by these entities. This final regulation (Reg. section 1.512(a)-5) is effective for taxable years beginning on or after Dec. 10, 2019. For more information, click here. 

If you have any questions, or would like additional information, please contact Michele Graham, CPA, MST, at 812-491-1360 or [email protected] or Lacy Bender, CPA, MBA at 812-491-1393 or [email protected]. 

This article was written by Jill Harris, Senior Director, and Bill O'Malley, Senior Director, RSM US.
It Can Happen to Your Organization: Addressing Nonprofit Fraud Risks 

Relationships are built on trust, especially in the nonprofit space. Relationships between grantors and the organization, between associations and their membership, and between organizational leadership and the board of directors must be built on trust. Unfortunately, employees, agents and stakeholders of those organizations sometimes abuse that trust. As fraudsters become more brazen and more difficult to detect, organizations of all sizes and in all industries face varying degrees of occupational fraud risk.

Unfortunately, nonprofit organizations are often at a more acute risk, because of limited resources and a lack of experience identifying and addressing potential areas of concern. The good news, however, is that organizations have opportunities to implement more effective processes and controls to limit fraud risks. To read more, click here. 

If you have any questions, or would like additional information, please contact Shannon Brewer, CPA at 812-491-1362 or [email protected] or Andrea Strange, CPA at 502-882-8450 or [email protected]. 

This article was written by Chris Ekimoff, Director, RSM, and originally  appeared in the
July 02, 2019 RSM US Financial Advisory Resource Center. 
How Do You Justify Using a Third Party vs. Doing Ourselves?
Recently I was with a room full of IT directors, discussing the importance of performing cost-benefit analysis before going to the management/board for approval. Someone asked, "How do you justify using a third-party, when we can do it ourselves? The math always makes it cheaper for us to do it in-house."

The room split on that point and my immediate reaction was "not necessarily", as both an accountant and a technologist, I love numbers, but to make an equation or a program work, you need to give it all the data. When determining the right answer for utilizing a third-party or staying in-house it is more than just the hours required to complete a task, there is a time value to money. To learn more, click here. 

To learn how outsourcing your accounting functions could benefit you, please contact Lisa Frank, CPA at 812-491-1312 or [email protected].

This article was written by Christina Churchill, Principal RSM US, and originally appeared in the April 02, 2019 RSM US Management Consulting Blog. 
6 Tips for Not-for-profit Board Members to Improve Volunteer Retention  
   
In this article from the Journal of Accountancy, published on January 30, 2020, you will find 6 ways for board members to help aid in the increase of volunteer retention within not-for-profit organizations. Utilizing volunteers intentionally and effectively, while also helping to maintain expectations, may lead to a higher rate of retention. It is important to keep the following 6 tips in mind when managing volunteers.  To read the full article, click here.  

 
 
 
 
 
 
RSM US Alliance provides its members with access to resources of RSM US LLP. RSM US Alliance member firms are separate and independent businesses and legal entities that are responsible for their own acts and omissions, and each are separate and independent from RSM US LLP. RSM US LLP is the U.S. member firm of RSM International, a global network of independent audit, tax, and consulting firms. Members of RSM US Alliance have access to RSM International resources through RSM US LLP but are not member firms of RSM International. Visit rsmus.com/about
us for more  information regarding RSM US LLP and RSM International. The RSM™  logo is used under license by RSM US LLP. RSM US Alliance products and services are proprietary to RSM US LLP.

Disclaimer: The information contained in this email is for general guidance on matters of interest only. The publication does not, and is not intended to provide legal, tax or accounting advice.
 
Internal Revenue Service rules require us to inform you that this communication may be deemed a solicitation to provide tax services. This communication is being sent to individuals who have subscribed to receive it or who we believe would have an interest in the topics discussed. 

Harding, Shymanski & Company, P.S.C.
800.880.7800 | [email protected]  | www.hsccpa.com