Articles From Lumsden McCormick

State and local tax (SALT) credits and incentives programs continue to be underutilized. Despite the substantial value they can add for businesses, BDO’s 2024 CFO Outlook Survey found that just 34% of CFOs plan to optimize costs by claiming tax credits in the next 12 months.

Board independence for nonprofits goes beyond just preventing conflicts of interest. The IRS defines independence using a four-part test, and failing to meet these criteria could raise concerns from the IRS and donors. To strengthen governance, nonprofits should aim to have at least two-thirds of their board members independent, with additional precautions for audit and compensation committees.

Manufacturers can reduce their 2024 tax liability by taking advantage of key provisions from the Tax Cuts and Jobs Act, including Section 179 expensing and bonus depreciation, as well as newer incentives from the Inflation Reduction Act and CHIPS Act. Implementing strategies such as purchasing eligible assets or leveraging tax credits for R&D and advanced manufacturing before year-end can result in significant tax savings. Acting quickly is essential to maximizing these opportunities.

On July 11, Pennsylvania Gov. Josh Shapiro signed into law the 2024-2025 budget (S.B. 654), which amends several important business and individual tax provisions.

The SECURE 2.0 Act has enhanced IRA Qualified Charitable Distributions (QCDs), allowing taxpayers aged 70½ and older to make direct contributions to qualified charities with increased annual limits and new opportunities through split-interest entities. These QCDs offer significant tax benefits, such as excluding the amount from taxable income and satisfying Required Minimum Distributions (RMDs). Nonprofits can boost donations by educating donors about these advantages and clearly communicating how their contributions will be utilized to support specific initiatives.

The journey from founding a company to successfully handing over the reins involves navigating a complex maze of financial, legal, and even emotional challenges.

We encourage you to listen to the recording of this insightful session, which delves into the complexities of ownership transfer whether you are planning to sell your business, pass it on to the next generation, or transition to a new leadership team, this recording will provide you with critical strategies to ensure a smooth and successful transfer. 

How does your organization stack up to similar nonprofits? Nonprofits are building on the present and preparing for the future.

A Charitable Remainder Trust (CRT) allows individuals to achieve two estate planning goals: providing income to beneficiaries and leaving assets to charity, all while receiving potential tax benefits. With options like CRATs and CRUTs, a CRT offers flexibility in payouts and contributions. However, it’s an irrevocable decision, so careful planning is essential.

Nonprofit leaders must implement clear credit card policies to prevent staff from misusing work-issued cards. This includes defining who needs a card, outlining rules for usage, and ensuring proper oversight by supervisors. By establishing clear guidelines and consequences, nonprofits can protect themselves from financial misuse and legal complications.