Articles From Lumsden McCormick

Qualified Charitable Distributions (QCDs) allow individuals 70½ or older to make tax-efficient donations directly from their IRAs to nonprofits, helping satisfy required minimum distributions while reducing taxable income. Recent updates under the SECURE 2.0 Act have expanded QCD limits and introduced new giving options offering donors more flexibility and nonprofits greater fundraising potential.

Qualified Charitable Distributions (QCDs) allow individuals aged 70½ or older to transfer funds directly from their traditional IRAs to qualified nonprofits, satisfying required minimum distributions (RMDs) while excluding the amount from taxable income. For 2025, individuals can contribute up to $108,000 annually ($216,000 for eligible couples), offering a tax-efficient giving strategy, especially for those who don’t itemize deductions. Recent updates through the SECURE 2.0 Act also introduced the option to make a one-time QCD enabling donors to support charities while receiving income for life. 

The OBBBA includes significant tax provisions that impact the U.S. manufacturing industry, such as resetting bonus depreciation to 100%, increasing Section 179 expensing limits, and making the QBI deduction permanent. Manufacturers should stay informed about these changes as the bill progresses through the legislative process. Please note that the tax law discussed in this article is currently proposed and has not yet been enacted.

The One, Big, Beautiful Bill Act proposes to restore the immediate deductibility of research and experimental (R&E) expenses, reversing the changes introduced by the Tax Cuts and Jobs Act (TCJA) that required these expenses to be capitalized and amortized over several years. If enacted, this bill would provide significant financial relief to innovation-focused businesses by allowing them to deduct R&E expenditures immediately. Please note that the tax law discussed in this article is currently proposed and has not yet been enacted.

An Employee Stock Ownership Plan (ESOP) offers a strategic way for closely held business owners to transition ownership while preserving wealth and minimizing taxes. By selling company stock to an ESOP, owners can gain liquidity, retain control, and create a valuable employee benefit, all within a tax-advantaged structure. However, the benefits must be weighed against setup and ongoing administrative costs.

To enhance the efficiency and effectiveness of nonprofit board meetings, several strategies are recommended. These include planning actionable agendas, providing adequate resources, prioritizing key issues, and more to optimize the time and energy of both leadership and board members. 

The One, Big, Beautiful Bill Act, a new bill in Congress, proposes significant changes to business tax breaks, including restoring 100% bonus depreciation, increasing Section 179 expensing limits, and making the Qualified Business Income deduction permanent. These changes aim to provide substantial tax relief and flexibility for business owners, encouraging investment and innovation. Please note that the tax law discussed in this article is currently proposed and has not yet been enacted.

Capital planning is a critical component of management for governments and public institutions. Here, we break down the capital planning process into four parts.

The proposed federal tax legislation aims to simplify the tax code, reduce rates for individuals and businesses, and eliminate certain deductions and credits. The bill also seeks to increase the standard deduction and expand tax credits for families, while ensuring that the changes are revenue-neutral over the long term. Please note that the tax law discussed in this article is currently proposed and has not yet been enacted.

Nonprofits can effectively manage their revenue sources by diversifying their funding streams and implementing strategic financial planning. This approach helps ensure financial stability and sustainability, allowing organizations to better achieve their missions and serve their communities.