Monthly Archives: January 2017

Acting on a Charity’s Behalf

By |2017-04-21T12:49:15+00:00January 1st, 2017|Deductions, Nonprofit, TAX, Tax Services|

If a for-profit business collects donations on behalf of a charity, are the contributions tax deductible for the donors? If the business is acting as an agent for the charity, the donations may be tax deductible. The agent can also provide contemporaneous written documentation to donors to substantiate their income tax deductions. The agent should [...]

Budgeting For Funding

By |2017-04-21T12:49:30+00:00January 1st, 2017|Fundraising, Nonprofit|

Fundraising plays an essential role in helping nonprofit organizations secure the money they need to fulfill their missions. Creating a budget for fundraising can help an organization utilize available resources most effectively. Determining How Much Is Needed A first step in the budgeting process is calculating the amount of additional capital needed. Subtracting expected income [...]

What Happens to a Trust in a Divorce

By |2017-04-26T13:58:52+00:00January 1st, 2017|Business Valuation|

What happens to a trust during a divorce? The answer is, “It depends.” Denny Taylor, MBA CPA ABV CFF, a forensic and valuation principal with TD&T CPAs and Advisors, P.C. addresses this situation. “Suppose a husband and wife are getting divorced and the wife is a beneficiary of a trust. A court will rule [...]

U.S. Court of Appeals for the 8th District Confirms that Damages Can be Assessed in Employment Contracts

By |2017-04-25T13:52:59+00:00January 1st, 2017|Business Valuation|

In a case summary published in April 2016, the U.S. Court of Appeals affirmed the judgment of a district court, awarding damages for lost profits in an employment contract dispute. The case brought by St. Jude Medical S.C., Inc. against Biosense Webster, Inc. hinged on the contractual agreement between an employee and St. Jude. [...]

Failing to Assign Value to Practice Goodwill Can Nullify Noncompete Clauses

By |2017-04-25T13:47:23+00:00January 1st, 2017|Business Valuation|

A case published in January 2016 emphasized the importance of establishing a value for practice goodwill. In California, a solo practitioner wanted to sell her medical practice to Monarch Healthcare, a large provider in the same market. Many similar sales of medical practices have happened in recent years. Monarch offered the doctor $1.7 million [...]

Case #3: A Holding Company Within an Estate Has an Undervaluation Penalty Upheld as the Court Holds for the IRS

By |2017-04-25T13:47:30+00:00January 1st, 2017|Business Valuation|

Estate of Richmond, T.C. Memo 2014-26 This case deals with the estate of a woman who owned a 23.44% interest in a family-owned holding company, a Subchapter “C” corporation. Most of the company’s $52.16 million in assets consisted of publicly traded securities. Because the company had held the assets for a long period of [...]

Applying the New Standard

By |2017-04-17T12:55:11+00:00January 1st, 2017|Accounting, Nonprofit|

Accounting Standards Update No. 2016-14 is the first major update to nonprofit accounting in almost 25 years. Becoming familiar with the changes as soon as possible can smooth the transition for organizations. In implementing the new standard, nonprofits will have to make some important decisions, including: •    How to disclose information regarding the function and [...]

Nonprofit Accounting Rule Changes

By |2017-04-17T12:55:23+00:00January 1st, 2017|Accounting, Nonprofit|

In an effort to improve how nonprofits present their financial statements, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2016-14, Not-for-Profit Entities (Topic 958): Presentation of Financial Statements of Not-for-Profit Entities. This standard changes how a nonprofit organization categorizes its net assets, as well as the information presented in financial statements needed [...]

Case #2: Is the Worth of a Business a Static Number? A Dentist Takes a Bite Out of His Ex-Spouse

By |2017-04-25T13:47:38+00:00January 1st, 2017|Business Valuation|

In re Cole, 548 B.R. 132 (2016) When valuing a business, “there are different standards of value depending on the purpose of the valuation being completed,” Denny Taylor explained. “You can rarely re-use an existing business valuation report. Not only does the value of a business change constantly over time, but the value also [...]

A Road Map for Achievement

By |2017-04-21T12:49:46+00:00January 1st, 2017|Goals, Nonprofit|

Your organization may have many ideas about what it hopes to accomplish, but is it stated specifically what needs to be done to realize them? Strategic planning may help. It’s the process of establishing your organization’s goals and outlining the steps and resources needed to achieve them within a given time frame. By aligning [...]